Analysis of what impact CSR activities bring in stock price crash events

Abstract

In recent years, from the viewpoint of reducing the future risk, there has been a growing awareness of CSR (Corporate Social Responsibility). In addition, SRI (Socially Responsible Investment) has been attracting attention. The number of investors which invest in a long-term perspective has been increasing. It is very important to know the stability of the stock price for such investors. This study contributes to promote active utilization of CSR information, by showing quantitatively the relation among CSR and stock price change in stock price crash events. In the results, for the recovering force of stock price, the effect is not showed. For the mitigation force of stock price crash, this study shows that some of CSR information is working effectively.