The IPO corporate social responsibility information disclosure: Does the stock market care?. (18th September 2019)

• Record Type: Journal Article
• Authors: Huang, Fangliang; Xiang, Lijin; Liu, Rongbing; Su, Shuling; Qiu, Hao
• Is Part Of: Accounting and finance. Volume 59(2019)Supplement 2
• Page Start: 2157
• Page End: 2198
• Publication Date: 2019-09-18
• Subjects: Corporate social responsibility -- IPO information disclosure -- Market effect; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.12534
• Languages: English
• ISSNs: 0810-5391

Abstract

Abstract: We create textual information indices using corporate social responsibility (CSR) information extracted from IPO prospectuses in China. We use the indices to measure the issuers' corporate social performance (CSP) and corporate environmental performance (CEP) and assess how the stock market reacts. We find that CSP disclosure is significantly related to the post‐market performance of the firm. Specifically, better CSP disclosure is correlated with higher post‐IPO listing holding period returns among firms that do not disclose donations or environmental expenditures, although the association does not hold for firms that make donations and environmental expenditures. In addition, institutional investors seem to care more about the CEP information for a firm than the CSP information.