Article (Scientific journals)
Asymmetric information and corporate social responsibility
Lopatta, Kerstin; Buchholz, Frerich; Kaspereit, Thomas
2016In Business and Society, 55 (3), p. 458-488
Peer reviewed
 

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Keywords :
Asymmetric information; Corporate social responsibility; insider trading
Abstract :
[en] This article addresses the question whether companies benefit from their commitment to corporate social responsibility (CSR). The authors argue that firms which score high on CSR activities build investor confidence and find evidence that they benefit from lower information asymmetry. The authors measure information asymmetry by insider trading, which is defined as the trading of a company’s shares by corporate insiders who have an information advantage with the aim to reap gains or avoid losses. Using a sample of U.S. firms listed in the MSCI World Index during the period 2004 to 2013 and the firm- and industry-level CSR rating from Global Engagement Service (GES), the authors show that insider transactions in firms with a high score on CSR activities lead to lower abnormal returns. This investigation extends current literature on the business case for CSR by explaining the influence of CSR activities on asymmetric information
Disciplines :
Accounting & auditing
Author, co-author :
Lopatta, Kerstin ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF)
Buchholz, Frerich
Kaspereit, Thomas ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
External co-authors :
no
Language :
English
Title :
Asymmetric information and corporate social responsibility
Publication date :
2016
Journal title :
Business and Society
ISSN :
0007-6503
Publisher :
SAGE Publications
Volume :
55
Issue :
3
Pages :
458-488
Peer reviewed :
Peer reviewed
Focus Area :
Sustainable Development
Available on ORBilu :
since 21 September 2016

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