Cause Marketing Research: Investors
Do Investors Appreciate Information about Corporate Social Responsibility? Evidence from the Polish Equity Market
Investors in emerging markets take into account changes in the level of corporate social responsibility and respond positively to its growth and negatively to its decline. Presence of a company in the ethical RESPECT Index helps to communicate higher standards of corporate social responsibility. Indicating that to investors may impact a company’s market value.
The Angel-Halo Effect: How Increases in Corporate Social Responsibility and Irresponsibility Relate to Firm Performance
The study finds that CSR significantly improves profitability, management efficiency, and market valuation. On the other hand, corporate irresponsibility has a marginal effect on damaging profitability only — and no significant effect on damaging management efficiency or market valuation. When a firm acts both responsibly and irresponsibly, the study confirms the “halo-effect” because the positive impact of CSR on financial performance outweighs the negative impact of acting irresponsibly.
