Abstract
Social responsibility information disclosed by listed companies is an important way to transfer non-financial information to the stock market, which affects the level of stock price synchronicity. In order to explore whether Corporate Social Responsibility (CSR) information is valuable in improving capital market pricing efficiency, this paper conducted empirical research based on a sample of China Shanghai and Shenzhen A-share listed companies in years 2010–2015. The results showed that: (1) Overall, there is a significant positive correlation between CSR information and stock price synchronicity; (2) under different disclosure motives, there is no significant difference in the impact of CSR on stock price synchronicity; (3) Securities analysts and institutional investors can negatively regulate the positive relationship between CSR and stock price synchronicity, while the media will intensify the positive effect of CSR on stock price synchronicity. This research is of great significance in promoting the fulfillment of CSR and improving capital market pricing efficiency.
Highlights
Corporate Social Responsibility (CSR) is a necessary way to safeguard the interests of corporate stakeholders and to promote the sustainable development of society
We explore whether CSR information under different disclosure motives is valuable for reducing stock price synchronicity and further investigate whether the analyst, the media, or institutional investor are concerned about such non-financial information
This paper studied the value of CSR information on firm-specific information content and capital market pricing efficiency based on the sample of China Shanghai and Shenzhen A-share listed companies in years 2010–2015
Summary
Corporate Social Responsibility (CSR) is a necessary way to safeguard the interests of corporate stakeholders and to promote the sustainable development of society. As the main body of disclosing firm-specific information at the source, in addition to regularly publishing basic financial information in accordance with the law, listed companies should increase disclosure of the non-financial information, such as the CSR related information, which has become an important strategic channel to improve their competitive advantage It remains to be studied whether the disclosure of CSR can provide investors with more firm-specific information to improve market pricing efficiency. This paper can provide an empirical reference for the implementation and management of CSR information disclosure in China; (3) this paper will provide a reference for improving market pricing efficiency and corporate governance quality, and protecting the interests of small and medium-sized investors in China It provides direction for improving the quality of non-financial information disclosure from the perspectives of institutional investors, the media, and securities analysts.
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