Examining the Impact of Corporate Social Responsibility on Stock Market Returns During the Global Financial Crisis: Evidence from the US and Europe

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School of Business | Bachelor's thesis
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Date

2023

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Mcode

Degree programme

Rahoitus

Language

en

Pages

31+3

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Abstract

This paper examines the effect of CSR on stock market returns during the Global Financial Crisis. The study comprises a total of 948 companies from the US and European markets. My results confirm certain findings in existing literature, while using a different CSR variable construction and database. My findings show that companies belonging to the top 20% or the second decile, considering CSR, outperformed others during the crisis period. I find that CSR’s behaviour is neither linear nor monotonic. Additionally, I examine the impact of CSR on the industry level and find that, generally, the industry is insignificant. The CSR measurement appears to be robust considering the time of measurement, but not by the definition of the crisis period. When March 2009 is excluded from the crisis period, results become highly significant considering economic and statistical aspects.

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Thesis advisor

Luotonen, Niilo

Keywords

Corporate Social Responsibility, CSR, ESG, environmental, social, global financial crisis, GFC, social capital

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