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Firm-value effects of CSR disclosure and CSR performance
Journal
EFMA-Conference proceedings
Type
conference paper
Date Issued
2017-06-30
Author(s)
Abstract
We examine in this paper the effects of corporate social responsibility (CSR) disclosure and CSR performance on firm value for S&P 500 firms from 2011 to 2014. We find that CSR disclosure is positively associated with firm value and that the effect of CSR disclosure on firm value is larger than the effect of CSR performance. On average, the overall firm value increase for one index point of Bloomberg's environmental, social, and governance (ESG) Disclosure Score is $260 million, whereas the increase for one index point of the Asset4 ESG Performance Score is below $90 million. Moreover, we find that CSR performance scores related to the environment and governance are positively associated with firm value while the social score is negatively associated. Our results suggest that CSR disclosure mediates CSR performance. Based on prior research, we argue that CSR disclosure tends to be positively biased and too complex to be processed properly. We conclude that a relatively high amount of CSR disclosure is misinterpreted as good CSR performance.
Language
English
Keywords
corporate social responsibility; CSR
ESG; firm value; voluntary disclosure
HSG Classification
contribution to scientific community
Publisher
EFMA
Start page
1
End page
31
Pages
31
Event Title
EFMA Annual Meeting 2017
Event Location
Athens
Event Date
Greece
Subject(s)
Eprints ID
251910