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

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bachelor_Viippola_Valtteri_2020.pdf (319.05 KB)

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School of Business | Bachelor's thesis
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Date

2020

Department

Rahoituksen laitos

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Mcode

Degree programme

Rahoitus

Language

en

Pages

21+4

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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.

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Thesis advisor

Spickers, Theresa

Keywords

CSR, corporate social responsibility, social capital, Covid-19

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https://urn.fi/URN:NBN:fi:aalto-202101241334

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[kand] Kauppakorkeakoulu / BIZ (Open Access)