A Study on the Effect of Corporate Social Responsibility upon the Returns of Stocks Listed in the Taiwan Stock Market

Abstract

This paper provides empirical evidence for the effect of corporate social responsibility on corporate financial performance in the Taiwan stock market In contrast to former studies we establish the eight formula and four dimension indexes to measure CSR(corporate social responsibility) performance and we also divide into different industries to make the assessment more impartial In this study we use three portfolios (HCSR LCSR and Market) to detect the relationship between CSR and stock performance Our analysis shows that companies with higher CSR scores (more CSR activities) compared with other firms within the industry do not have significantly better stock performance during our sample period However companies with lower CSR scores (engage less CSR activities) had significant negative effects on average monthly returns between 2011 and 2015 We also use the four factors model to intensify the result of this study

Date of Award	2016 Jun 23
Original language	English
Supervisor	Meng-Feng Yen (Supervisor)