Corporate social responsibility's effect on stock returns during the Covid-19 crisis: evidence from U.S. markets

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Journal Title
Journal ISSN
Volume Title
School of Business | Bachelor's thesis
Date
2020
Major/Subject
Mcode
Degree programme
Rahoitus
Language
en
Pages
21+4
Series
Abstract
I found that social capital measured by Corporate Social Responsibility (CSR) activities had a negative effect on stock returns during the Covid-19 from February 2020 to August 2020. High-CSR firms had two to four percentage points lower returns. Financial characteristics like profitability and cash holdings tended to have a bigger impact on returns during this period. I performed multiple regressions to analyse the effect of CSR on raw buy-and-hold returns and abnormal returns, while controlling for multiple financial characteristics and other control variables. I used data from the United States and my sample covered 1023 firms.
Description
Thesis advisor
Spickers, Theresa
Keywords
CSR, corporate social responsibility, social capital, Covid-19
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