Abstract
The purpose of this research is to examine how awards and indexes related to Corporate Social Responsibility (CSR) affect the corporate values of Kao, which is one of the biggest chemical manufacturer in Japan. We conduct event study to validate that an abnormal return occurs on the day Kao wins awards or Kao's stock is designated as investment indexes. We extract all information related to CSR awards and indexes as much as we could search on Kao's web site. In case that Kao won awards and designations in a row, we conduct a retrospective review of the award history. We conduct comprehensively event study on 38 items including domestic and foreign investment indexes, commendation by Japanese and international organizations, and internal evaluation such as Kao's CSR reports. As a result, out of 105 of the event study, we find two statistically significant abnormal returns. One is positive in FTSE4Good 2011, and one is negative in Kao's CSR report 2018. It is more natural to think that the two significant abnormal results are observed coincidentally as we set the significance level as 5%. Two events out of 105 events could show the statistically significant result at 5% coincidentally. We could not conclude that CSR activities positively affect the corporate values of Kao. In the future, it is also necessary to verify CSR activities from the reduction of risk and the improvement of brand values through the increase in reputation.
https://ror.org/010996a78 
