Market Effect of Listed Corporate Social Responsibility Report Disclosure—Based on Combined Test of the Double Events

Zhenyu Ji

doi:10.4236/ojbm.2015.32016

Abstract

CCTV Financial 50 Index1, the first stock index released by China’s state media, was launched on June 6, 2012. As one of the elements looked at by the index to selected 50 best performance listed companies, social responsibility becomes a hot spot of social attention. This paper investigates the market effect of listed companies in A-share market which disclosed social responsibility report in 2010. Results of the study show that the information in Corporate Social Responsibility (CSR) Report has no significant market effect as the disclosure of CSR Report. However, when the White Book of Chinese CSR Report is released, the information in CSR Report generates significant market effect. Moreover, the higher the quality of CSR Report disclosed, the more significant the market effect. In conclusion, the White Book of Chinese CSR Report has a reinforcing action on the information in CSR Report.

Highlights

On June 6, 2012, China’s first media index—“CCTV Financial 50 Index” was official released, and Corporate Social Responsibility (CSR) as an important dimension of the selection for the index
In 2006, the Corporate Law requested that enterprise should undertake social responsibility; The Listed Company Social Responsibility Guidelines was issued by the Shenzhen Stock Exchange on Sept. 18, 1968 clearly put forward the listed companies should take responsibility for social stakeholders of all parties concerned; The Guidelines for Central Enterprises to Fulfill Social Responsibility issued by the SASAC on Jan. 4, 2008 clearly put forward the general requirements of fulfillment of social responsibility for central enterprises; In 2008, the Shanghai Stock Exchange issued the CSR Report Guidance and Review Working Paper, making the detailed requirements of report preparation of corporate social responsibility
If the Started-companies’ Cumulative Abnormal Return (CAR) is greater than Starting-companies’ CAR and there are significant differences between them, it means that the disclosure of White Book of Chinese CSR Report is helpful for the companies with higher quality CSR Report to catch more attention of the market, videlicet, the market can identify the quality of CSR Report disclosed through the scores of White Book of Chinese CSR Report related

Summary

Introduction

On June 6, 2012, China’s first media index—“CCTV Financial 50 Index” was official released, and Corporate Social Responsibility (CSR) as an important dimension of the selection for the index. In 2006, the Corporate Law requested that enterprise should undertake social responsibility; The Listed Company Social Responsibility Guidelines was issued by the Shenzhen Stock Exchange on Sept. 18, 1968 clearly put forward the listed companies should take responsibility for social stakeholders of all parties concerned; The Guidelines for Central Enterprises to Fulfill Social Responsibility issued by the SASAC on Jan. 4, 2008 clearly put forward the general requirements of fulfillment of social responsibility for central enterprises; In 2008, the Shanghai Stock Exchange issued the CSR Report Guidance and Review Working Paper, making the detailed requirements of report preparation of corporate social responsibility. The CSRC definitely required more than 360 listed companies of the Shenzhen Stock Exchange and the Shanghai Stock Exchange should disclose CSR Report

Objectives

Results

Conclusion