The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash
Autor(a) principal: | |
---|---|
Data de Publicação: | 2023 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/42614 |
Resumo: | The impact of Corporate Social Responsibility (CSR) on firm performance has been widely debated in recent times. This paper examines how the pre-crisis CSR scores impacted stock returns during two distinct crises: the 2008-2009 Financial Crisis and the Covid-19 crisis and it presents a comparative analysis of the results. Empirical evidence reveals that, during both crises, firms with higher CSR scores outperformed those with lower scores in terms of stock performance by at least 0.0010 percentage points in the former crisis and by at least 0.0318 percentage points in the latter. Moreover, the positive impact of pre-crisis CSR scores on Abnormal Returns was found to be greater than that on Raw Returns, during both crises. Additional analyses suggest that, for both crises, the impact of pre-crisis CSR scores on stock returns might be contingent upon the CSR score exceeding a specific threshold and that accounting for the highest-value firms weakened this impact. The study also indicates that trust might be the underlying mechanism explaining the positive impact of pre-crisis CSR scores on stock returns. Besides, the comparative analysis reveals that the impact of pre-crisis CSR scores on firm performance differed between the two crises due to the extent of the impact felt, being greater for the Covid-19 crisis. In conclusion, evidence suggests that, by building trust, pre crisis CSR scores served as a hedging tactic against the detrimental effects of crises. |
id |
RCAP_a5da16969dd1b347649d191c985332f6 |
---|---|
oai_identifier_str |
oai:repositorio.ucp.pt:10400.14/42614 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crashCorporate Social Responsibility (CSR)Stock returnsThe 2008-2009 financial crisisThe Covid-19 crisisTrustHedging tacticResponsabilidade Social Empresarial (RSE)Retorno das açõesCrise financeira de 2008-2009Crise do Covid-19ConfiançaEstratégia defensivaDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe impact of Corporate Social Responsibility (CSR) on firm performance has been widely debated in recent times. This paper examines how the pre-crisis CSR scores impacted stock returns during two distinct crises: the 2008-2009 Financial Crisis and the Covid-19 crisis and it presents a comparative analysis of the results. Empirical evidence reveals that, during both crises, firms with higher CSR scores outperformed those with lower scores in terms of stock performance by at least 0.0010 percentage points in the former crisis and by at least 0.0318 percentage points in the latter. Moreover, the positive impact of pre-crisis CSR scores on Abnormal Returns was found to be greater than that on Raw Returns, during both crises. Additional analyses suggest that, for both crises, the impact of pre-crisis CSR scores on stock returns might be contingent upon the CSR score exceeding a specific threshold and that accounting for the highest-value firms weakened this impact. The study also indicates that trust might be the underlying mechanism explaining the positive impact of pre-crisis CSR scores on stock returns. Besides, the comparative analysis reveals that the impact of pre-crisis CSR scores on firm performance differed between the two crises due to the extent of the impact felt, being greater for the Covid-19 crisis. In conclusion, evidence suggests that, by building trust, pre crisis CSR scores served as a hedging tactic against the detrimental effects of crises.O impacto da Responsabilidade Social Empresarial (RSE) no desempenho das empresas tem sido amplamente debatido nos últimos tempos. Este estudo analisa como as pontuações de RSE pré-crise afetaram os retornos das ações durante duas crises distintas: a crise financeira de 2008- 2009 e a crise do Covid-19, apresentando uma análise comparativa dos resultados. A análise empírica indica que, em ambas as crises, empresas com pontuações mais elevadas de RSE obtiveram retornos superiores às empresas com pontuações mais baixas em pelo menos 0,0010 pontos percentuais na primeira crise e em pelo menos 0,0318 pontos percentuais na segunda. O estudo indica, também, que, em ambas as crises, a RSE teve um impacto superior nos retornos anormais do que nos retornos brutos. Análises adicionais sugerem que, em ambas as crises, o 2 impacto das pontuações de RSE pré-crise nos retornos pode depender de o seu valor exceder um determinado valor e que a inclusão da variável de controlo para as empresas de maior valor enfraqueceu o impacto da RSE nos retornos das ações. Os resultados indicam que a confiança foi, possivelmente, o mecanismo subjacente que explicou o impacto positivo da RSE nos retornos das ações. Para além disso, a análise comparativa revela que o efeito das pontuações RSE pré-crise no desempenho das empresas diferiu entre as duas crises, devido à magnitude do impacto, sendo este superior durante a crise do Covid-19. Em suma, os resultados indicam que, ao gerar confiança, a RSE serviu como estratégia defensiva contra os efeitos negativos das crisesZhao, LeiVeritati - Repositório Institucional da Universidade Católica PortuguesaMatos, Sofia Franco Abreu2023-06-292023-052024-05-23T00:00:00Z2023-06-29T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/42614TID:203329317enginfo:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-10-03T01:43:02Zoai:repositorio.ucp.pt:10400.14/42614Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T20:31:02.448257Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash |
title |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash |
spellingShingle |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash Matos, Sofia Franco Abreu Corporate Social Responsibility (CSR) Stock returns The 2008-2009 financial crisis The Covid-19 crisis Trust Hedging tactic Responsabilidade Social Empresarial (RSE) Retorno das ações Crise financeira de 2008-2009 Crise do Covid-19 Confiança Estratégia defensiva Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash |
title_full |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash |
title_fullStr |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash |
title_full_unstemmed |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash |
title_sort |
The impact of the pre-crisis CSR scores on firm performance during times of crises : a comparison between the 2008-2009 financial crisis and the Covid-19 market crash |
author |
Matos, Sofia Franco Abreu |
author_facet |
Matos, Sofia Franco Abreu |
author_role |
author |
dc.contributor.none.fl_str_mv |
Zhao, Lei Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Matos, Sofia Franco Abreu |
dc.subject.por.fl_str_mv |
Corporate Social Responsibility (CSR) Stock returns The 2008-2009 financial crisis The Covid-19 crisis Trust Hedging tactic Responsabilidade Social Empresarial (RSE) Retorno das ações Crise financeira de 2008-2009 Crise do Covid-19 Confiança Estratégia defensiva Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Corporate Social Responsibility (CSR) Stock returns The 2008-2009 financial crisis The Covid-19 crisis Trust Hedging tactic Responsabilidade Social Empresarial (RSE) Retorno das ações Crise financeira de 2008-2009 Crise do Covid-19 Confiança Estratégia defensiva Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
The impact of Corporate Social Responsibility (CSR) on firm performance has been widely debated in recent times. This paper examines how the pre-crisis CSR scores impacted stock returns during two distinct crises: the 2008-2009 Financial Crisis and the Covid-19 crisis and it presents a comparative analysis of the results. Empirical evidence reveals that, during both crises, firms with higher CSR scores outperformed those with lower scores in terms of stock performance by at least 0.0010 percentage points in the former crisis and by at least 0.0318 percentage points in the latter. Moreover, the positive impact of pre-crisis CSR scores on Abnormal Returns was found to be greater than that on Raw Returns, during both crises. Additional analyses suggest that, for both crises, the impact of pre-crisis CSR scores on stock returns might be contingent upon the CSR score exceeding a specific threshold and that accounting for the highest-value firms weakened this impact. The study also indicates that trust might be the underlying mechanism explaining the positive impact of pre-crisis CSR scores on stock returns. Besides, the comparative analysis reveals that the impact of pre-crisis CSR scores on firm performance differed between the two crises due to the extent of the impact felt, being greater for the Covid-19 crisis. In conclusion, evidence suggests that, by building trust, pre crisis CSR scores served as a hedging tactic against the detrimental effects of crises. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-06-29 2023-05 2023-06-29T00:00:00Z 2024-05-23T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/42614 TID:203329317 |
url |
http://hdl.handle.net/10400.14/42614 |
identifier_str_mv |
TID:203329317 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799133579193614336 |