TAILIEUCHUNG - Corporate social responsibility and information asymmetry

This research investigates the connection between Corporate Social Responsibility (CSR) and the issue of information asymmetry. Our CSR sample comes from the DJSI (Dow Jones Sustainability North America Index), and the sample consists from 764 firm-year observations during 2002 to 2010. Our empirical work find there is a significantly negative relationship between CSR and information asymmetry proxy, which means that market responds CSR with smaller gap between bid-ask spreads. CSR also reduces the excess returns when higher degree of information asymmetry exists, which compensate less excess returns to investor than non-CSR firms. Furthermore, CSR firms have less degree of overreaction than matching firms when the book-to-market effect and intangible information are considered | Journal of Applied Finance Banking vol. 5 no. 3 2015 105-122 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2015 Corporate Social Responsibility and Information Asymmetry Lu Chia-Wu1 and Chueh Ting-Shu2 Abstract This research investigates the connection between Corporate Social Responsibility CSR and the issue of information asymmetry. Our CSR sample comes from the DJSI Dow Jones Sustainability North America Index and the sample consists from 764 firm-year observations during 2002 to 2010. Our empirical work find there is a significantly negative relationship between CSR and information asymmetry proxy which means that market responds CSR with smaller gap between bid-ask spreads. CSR also reduces the excess returns when higher degree of information asymmetry exists which compensate less excess returns to investor than non-CSR firms. Furthermore CSR firms have less degree of overreaction than matching firms when the book-to-market effect and intangible information are considered. JEL classification numbers M14 G30 Keywords Corporate Social Responsibility Information asymmetry Dow Jones Sustainability Indices. 1 Introduction Corporate social responsibility hereafter abbreviated as CSR an attractive topic worthy of attentions during decades has being discussed within many financial business and macroeconomic fields. There are several viewpoints to define CSR although an exact definition is still yet to be obtained Dahlsrud 2008 . A popular expression stakeholder theory3 suggests that firms with higher CSR characters will do more efforts for being Corresponding Author. Assistant Professor Department of Finance Cooperative Management National Taipei University New Taipei City Taiwan. 2Assistant Manager Taishin International Bank Taipei Taiwan. Article Info Received December 19 2014. Revised January 12 2015. Published online May 1 2015 3The detail of stakeholder theory can be referred to Freeman 1984 . 106 Lu Chia-Wu and Chueh Ting-Shu responsible not only

• Quản trị kinh doanh
• Corporate social responsibility
• Information asymmetry
• Dow jones sustainability indices
• Information asymmetry
• Information asymmetry
• External corporate social responsibility
• Sustainable development
• Perception of CSR
• Corporate social responsibility and accounting restatement
• Evidence from pakistan
• Non financial firms
• Impact of corporate social responsibility
• Social responsibility factor
• Business performance of enterprise
• Cohesion and opportunistic workers’ behavior
• Business and society
• The Corporate Social Responsibility
• Traditional Arguments Against
• Corporate Social Responsiveness
• Corporate Social Performance
• Corporate Citizenship
• Activities of corporate social responsibility
• Enhancing Corporate Reputation
• Assessing Corporate Social Responsibility
• Private sector banks
• Employees of the bank
• The challenges and benefits of corporate social responsibility in Nigeria
• Bbayelsa state education development trust fund
• Corporate governance
• Measurement index
• Social sciences
• Corporate social responsibility dimensions
• Customer satisfaction
• Brand image mediating
• Report choice
• Corporate social responsibility disclosuredchoic
• Positive accounting
• Top manager’s characteristics
• Family controlled companies
• Applying Carroll’s CSR pyramid in studying employees’ perceptions
• Applying Carroll’s CSR
• Decision makers in business organizations
• Dissertation summary
• The influence of corporate social responsibility
• Employee commintment
• Firm’s performance
• Nong Lam University students' perceptions of corporate social responsibility
• Structural equation modelling
• Nong Lam University students
• Thinking and behavior
• Independent directors
• Stakeholder theory
• Corporate social responsibility disclosure between Japan
• Two national contexts
• Corporate social responsibility toward employees on employee motivation in enterprises
• Opportunistic behavior in enterprises
• The factors of opportunistic behavior
• Corporate social responsibility toward employees
• Applying 2 stage DEA model
• The corporate social responsibility implementing efficiency of FDI firms
• Foreign direct investment
• Promote FDI firms’ efficient commitment to CSR
• Corporate social responsibility and internal marketing
• Employee turnover intention
• Role of organizational commitmen
• SPSS19 and AMOS23 softwares
• Social responsibility disclosure
• Empirical evidence
• Human resources
• CSR disclosure
• Choosing a tourist destination
• Role of social responsibility
• Good social responsibility practices
• Confirmative factor analysis
• Qualitative variables of CSR reports
• Selected Indian companies
• Corporate Social Responsibility reports
• Role of educational institutions
• Significances of CSR
• Global workforce competition
• Corporate social responsibility programs
• Finance accounting and Auditing
• Corporate social responsibility disclosures
• Legitimacy theory
• Non manufacturing firms
• Rmployees engagement
• City of Salé
• Work performance
• Listed firm
• Directors’ remuneration
• Global Reporting Initiative
• Corporate Responsibility
• Accounting
• Mainsteaming Corporate
• Social Responsibility
• Societal Marketing
• Banking Profession
• Influence of firm size
• Banking firms
• Evidence from Jordan