CSP disclosure & Seasoned equity offerings:The effects of CSP disclosure & disclosure credibility on SEO announcement returns
Keywords
No Thumbnail Available
Authors
Issue Date
2020-08-12
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
Previous research has resulted in contradictory literature on the effects of corporate social performance (CSP) disclosure on shareholder value. This study researched if the previously mixed results can be explained through CSP disclosure credibility through analysing seasoned equity offering (SEO) announcement returns. SEO announcements are largely unexpected which negates the reverse causality issues of prior studies researching CSP disclosure and shareholder value. Using a unique international dataset of SEOs, it is found that firms with higher CSP scores are faced with more adverse SEO announcements returns. Results also indicate that voluntary actions taken by firms to increase CSP disclosure credibility through compliance with GRI reporting standards or via obtaining external assurance do not influence SEO announcement returns. Overall, the results of this study provide evidence for the CSP expense view indicating CSP disclosure does not benefit shareholder wealth. These results have implications for firms considering CSP disclosure and for firms contemplating the costs and benefits of GRI compliant CSP disclosure and of CSP assurance.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen