Corporate Social Responsibility and Stock Market Performance: CSR Impact After the Financial Crisis and the Role of Primary CSR Activities

Pinteková, Aneta

This thesis analyses the relationship between corporate social responsibility and com- panies' stock market performance in the post-financial crisis period. A new measure of social responsibility is used, called Thomson Reuters Environmental, Social, Governance, and Controversies Score. The results of the Fixed Effects regression show a significant, positive impact of the Score on the financial results of companies. Socially responsible activities are further divided into those closely related to the specific type of business of examined companies, called primary, and into those that are not dir- ectly related to the companies' business core, called secondary. Such distinction has not yet been made in the academic literature. Empirical results suggest that if companies aim at increasing their share prices also via the corporate social responsibility channel, they are encouraged to select their socially responsible initiatives strategically. The im- pact of the primary responsible activities on the corporate stock market performance is significantly positive, while the secondary responsible activities do not affect the financial results substantially. JEL Classification: A130, G110 Keywords: corporate social responsibility, CSR, business ethics, stock market perform- ance, fixed effects

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