Accessibility navigation


Corporate social performance and stock returns: UK evidence from disaggregate measures

Downloads

Downloads per month over past year

Brammer, S., Brooks, C. and Pavelin, S. (2006) Corporate social performance and stock returns: UK evidence from disaggregate measures. Financial Management, 35 (3). pp. 97-116. ISSN 1755-053X

[img]
Preview
Text - Accepted Version
· Please see our End User Agreement before downloading.

300Kb

To link to this article DOI: 10.1111/j.1755-053X.2006.tb00149.x

Abstract/Summary

This study examines the relation between corporate social performance and stock returns in the UK. We closely evaluate the interactions between social and financial performance with a set of disaggregated social performance indicators for environment, employment, and community activities instead of using an aggregate measure. While scores on a composite social performance indicator are negatively related to stock returns, we find the poor financial reward offered by such firms is attributable to their good social performance on the environment and, to a lesser extent, the community aspects. Considerable abnormal returns are available from holding a portfolio of the socially least desirable stocks. These relationships between social and financial performance can be rationalized by multi-factor models for explaining the cross-sectional variation in returns, but not by industry effects.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > ICMA Centre
ID Code:20507
Publisher:Wiley

Download Statistics for this item.

Centaur Editors: Update this record

Page navigation