Corporate Social Responsibility and Analysts' Recommendations

• Main Author: 沈瑜峰
• Other Authors: 張元
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/25021544355896331052

碩士 === 國立彰化師範大學 === 商業教育學系 === 101 === In recent years, the CSR (Corporate Social Responsibility) issue has been gradually emphasized by management field, theoretically and practically. If corporate needs sustainable operation, not only stockholders should be treated well, but also all stakeholders. Nevertheless, in academic research, whether devoting to CSR brings positive feedback, there is no consistency among existing studies. And while most of existing research found that firm involves CSR’s behavior have a higher market value and stock return, little discussion and investigation devote to explore the role of analysts’ recommendations as mechanism from CSR toward firm’s performance. This motivates the thesis to propose and examine the linkage between firm’s CSR engagement and its number of and favorableness by analysts’ recommendations. In this thesis, I investigated financial quarterly data of Taiwan's listed companies from 2005Q1 to 2012Q2, and employed the Common Wealth’s Excellence in CSR and Global Views Monthly’s CSR Award as firms’ CSR grades. Analysts’ recommendations are from DataStream I/B/E/S database. Based on regression analysis to test the correlation between social responsibility and analysts’ recommendations, empirical results show that, even if the company size and financial characteristics variables are controlled, firm with better corporate social responsibility performance still corresponds with more number of recommendations and more favorable recommendations, that is, analysts tends to interpret firm’s corporate social responsibility behaviors as value-creation strategy. Principal outcomes are robust under various specifications of regression estimations and two-stage estimations to correct for endogenously self-selection of firm’s engaging in CSR.