Paper Title
The Impact of Corporate Social Responsibility on Investment Recommendations
Start Date
16-7-2010 8:30 AM
End Date
16-7-2010 10:00 AM
Description
Using a large sample of publicly traded US firms over 16 years, we investigate the impact of corporate socially responsible (CSR) strategies on security analysts’ recommendations. Socially responsible firms receive more favorable recommendations in recent years relative to earlier ones, documenting a changing perception of such strategies by the analysts. Moreover, we find that higher visibility firms receive more favorable recommendations for their CSR strategies. We also find that analysts with more experience, broader CSR awareness or those with more resources at their disposal, are more likely to perceive CSR strategies favorably. Our results show how CSR strategies can affect value creation in public equity markets through analyst recommendations.
COinS
The Impact of Corporate Social Responsibility on Investment Recommendations
Using a large sample of publicly traded US firms over 16 years, we investigate the impact of corporate socially responsible (CSR) strategies on security analysts’ recommendations. Socially responsible firms receive more favorable recommendations in recent years relative to earlier ones, documenting a changing perception of such strategies by the analysts. Moreover, we find that higher visibility firms receive more favorable recommendations for their CSR strategies. We also find that analysts with more experience, broader CSR awareness or those with more resources at their disposal, are more likely to perceive CSR strategies favorably. Our results show how CSR strategies can affect value creation in public equity markets through analyst recommendations.
Comments
Later published as:
Ioannou, I., & Serafeim, G. (December 01, 2012). What drives corporate social performance the role of nation-level institutions. Journal of International Business Studies, 43, 9, 834-864.