Financial Performance and the Competitive Effects of Corporate Social Responsibility
| Autor: | Vijay Gondhalekar, Kevin Lehnert |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
060101 anthropology
Actuarial science Financial performance 05 social sciences Financial ratio 06 humanities and the arts Competitor analysis Share price Abnormal return Shareholder 0502 economics and business Corporate social responsibility 050211 marketing 0601 history and archaeology Demographic economics Business Social responsibility |
| DOI: | 10.1108/s1569-373220160000019001 |
| Popis: | This study examines share price reaction to the enrollment by companies in the Children’s Food and Beverage Advertising Initiative. We find that, on average, in the month of enrollment, shareholders of companies that join the CFBAI experience abnormal return of −3% and so do the shareholders of the immediate competitors that do not join the initiative. However, over the subsequent five years, while the shareholders of companies enrolled in the initiative experience an average abnormal return of +16.6%, that of non-enrolled competitors experience a further abnormal return of −34%. The abnormal returns for the two groups (at the time of enrollment and over the subsequent five years) are uncorrelated and so benefitting at the expense of competitors does not appear to be the motive for enrolling in the CFBAI. The study also provides comparison of number of employees and other important financial ratios before and after enrollment in the CFBAI for the two groups. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|