Investors’ Response to Signals of Corporate Social Responsibility

• Main Authors: Hong, Shu-Fang, 洪淑芳
• Other Authors: Chen, Chia-Hui
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/25542758687610324600

碩士 === 靜宜大學 === 會計學系 === 103 === In recent years, investors not only value financial performance but also non-financial indicators. Investors do not invest in the companies which operate profitably but endanger the earth. The more transparent corporate social responsibility disclosed in financial reporting, the higher market value the company have. This study examines whether investors would change their investment decisions upon receiving information on environmental protection, social welfare, and corporate governance. The study collected public listed companies from the Taiwan Securities and Exchange Commission and gathered these companies’ positive and negative news about CSR (corporate society responsibility) during the period from 2007 to 2014. Event study was conducted in this research. The study findings indicate that investors significantly alter their investment decisions at the time of announcing information on CSR. Moreover, positive and negative CSR information significantly change investors’ decisions upon the announcement date. Worthy to mention, investors will not pay close attention to social welfare information until it is disclosed and announced. And, investors’ decision may be significantly influenced by information on environmental protection upon it is announced. Afterwards, investors won’t follow up its postdrift effect. Finally, the study classified the sample companies into two industries, the electrical and non-electrical industries. The study finds that the investors may react differentially to CSR information announced by the companies in different industries at statistical significance.