The Impact of Negative Corporate Social Responsibility on Corporate Valuation
| Autor: | Ming-Hong Huang, 黃銘鴻 |
|---|---|
| Rok vydání: | 2014 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 102 The study examines the valuation effect of 1212 negative corporate social responsibility events from 619 companies over 1996 to 2010. We use three models (e.g., risk-adjusted model, scholes-williams ols model, and market adjusted returns model) to calculate cumulative abnormal returns over the day before to the day after the announcement date as the measure of short-term market reactions. In addition, we consider the influence of firm characteristics and corporate governance mechanisms on market reactions. Moreover, we analyze the buy and hold abnormal returns (BHARs) over the post-announcement three years and the change of industry-adjusted sales growth, the change of industry-adjusted return on assets, and the change of industry-adjusted asset turnover to investigate the effects of negative CSR events on long-term performance. Finally, we use the industry-adjusted free cash flow, the industry-adjusted R&D, and the industry-adjusted capital expenditure to explore the negative CSR events’ effects on free cash flows and investments. The results that show the negative CSR events are associated with significantly negative short-term market reactions, suggesting that negative CSR events affect investor perceptions of the company. The regression results show that short-term market reaction is influenced by firm characteristics, in particularly “firm size”. When negative CSR events happened, smaller firms are associated with more negative reactions because of severe information asymmetry. Among four types of negative CSR events, we find that the type of “other illegal” events are associated with significantly poorer market reactions than the other types of events. We also find that after the negative CSR events, firms have significantly negative BHARs and decreased sales growth. Moreover, firms are found to reduce their capital expenditures to mitigate the negative effect and associated uncertainty risk. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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