Corporate Social Responsibility Report Release and U.S. Firms' Stock Price Reaction

Abstract

This study focused on finding a correlation between the release of a corporate social responsibility report and investors' reaction s after its release, as seen in a change in stock price. I examined a random sample of thirty public United States firms and in order to try and determine a stock price reaction from the release of a CSR report in the past five years. By calculating the change in the individual firms' stock prices and the market change for the day, I ran statistical analysis in order to determine if the release of the report bore any significance. Though the results did to reveal a direct link to the change in stock price and the CSR report release, I also provide a number of suggestions for future research and implications that CSR reporting has on the accounting and regulator communities.