| Summary: | 碩士 === 亞洲大學 === 財務金融學系碩士在職專班 === 107 === This study examines whether the performing of corporate social responsibility (CSR) positively affects the stock announcement effect of share repurchases. That is, whether the CSR award information of firms has a positive modifying effect on stock price reaction to share buyback. The sample is that both the listed and OTC firms in Taiwan who perform share repurchases and win the CSR award from 2007 to 2018. The study considers the control sample which is the firms with similar characteristics as those winning CSR awards who perform share repurchase and do not yield a CSR award. Both the event sample and the control group are used as the observations in the regression analyses. The cumulative abnormal returns estimated by the event study method is used as the explained variable, and the winning CSR awards of the repurchase firms is the key explanatory variable, which is a dummy variable.
The empirical result is that there is not a significant difference for the short-run stock price reaction to share repurchase announcements between the CSR-award winners and the un-winners. That is, winning CSR award does not increase the abnormal returns induced by share repurchases. This phenomenon indicates that investors do not think firm values will immediately rise when they receive the information of firms winning CSR awards. The reason is likely that CSR activities’ only have a long-run impact on stock values. Firms need to input CSR activities in the long run to obtain good reputation in the society, and in turn, the benefits gradually are produced and firm values increase. Thus, this long-term information content can not be captured by short-term stock price reactions.
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