A Global Perspective of the Relation between Corporate Social Performance and Financial Performance: The Moderating Effect of Press Freedom

Abstract

This study investigates the relation between the corporate social performance (CSR) and future stock return and the moderating effect from press freedom CSR tends to improve firms’ reputation and gain trust from investors by creating more value for shareholders contributing in social or environmental activities and performing well in corporate governance which taken together results in better expectation about future financial performance by investors as well as higher future stock return Media is a way for investors to know the firms’ performance to the extent that press freedom could play a moderating role in the relation between CSR and financial performance Based on a large sample of firms from 10 countries for the 2012-2016 period our empirical results show that CSR exerts a positive impact on future stock returns in developed stock markets but no significant impact on future stock returns in emerging stock markets Besides press freedom has an enhancement effect on the relation between CSR and future stock returns

Date of Award	2020
Original language	English
Supervisor	Meng-Feng Yen (Supervisor)