Abstract
ABSTRACT This research explores the effects that media coverage of corporate social responsibility (CSR) news related to investor, customer, employee and community issues has on the market value of Spanish banks, measured as the impact generated in abnormal returns for these companies. We use an event study with a sample of 190 positive CSR articles published online between 2015 and 2018 in the most important Spanish business newspaper according to its diffusion rate. The findings demonstrate that positive CSR news related to investor, customer, employee and community issues generates positive abnormal returns for listed banks. In the [−1,+1] window, positive investor news has notably larger effects on the abnormal returns for these companies than positive news related to customer, employee and community issues, which have similar effects.
Highlights
The significant effect of media coverage of corporate social responsibility (CSR) news on the market value of listed companies has been well established in the literature (Flammer, 2013)
This research explores the effects that media coverage of corporate social responsibility (CSR) news related to investor, customer, employee and community issues has on the market value of Spanish banks, measured as the impact generated in abnormal returns for these companies
The findings demonstrate that positive CSR news related to investor, customer, employee and community issues generates positive abnormal returns for listed banks
Summary
The significant effect of media coverage of corporate social responsibility (CSR) news on the market value of listed companies has been well established in the literature (Flammer, 2013). CSR information becomes a critical and necessary element with which to facilitate the identification of socially responsible companies on financial markets (López-Arceiz, Bellostas-Pérezgrueso, Moneva-Abadía, & Rivera-Torres, 2018). Along this line, previous studies have focused on exploring the effect of different types of CSR news on the abnormal returns for listed companies. Previous findings highlight that negative information about community and philanthropic issues is especially valued by shareholders, the effect of positive information on market value is less conclusive (Gregory et al, 2014)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
