Author : Jiun-Lin Chen
Publisher :
ISBN 13 :
Total Pages : 53 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Which Corporate Social Deeds Matter? Evidence From the Motivated Institutional Ownership by : Jiun-Lin Chen
Download or read book Which Corporate Social Deeds Matter? Evidence From the Motivated Institutional Ownership written by Jiun-Lin Chen and published by . This book was released on 2018 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Among the 41 items from five corporate social responsibility dimensions: community, diversity, employee relations, environment, and human rights, we examine which corporate social deeds influence institutional investors' motivated equity ownership most in the U.S. We find that enforcing gay-friendly policies significantly increases the motivated institutional ownership while fairly treating the unionized workforce reduces the motivated institutional ownership after we take the endogeneity issue into consideration. Our further analysis suggests that firms' innovative activities may contribute to this result. In addition, our finding suggests that independent institutional investors avoid corporate social deeds decreasing a firm's profitability more than grey institutional investors. Furthermore, we find that failing to protect the environment and having bad relations with indigenous peoples attract more diversified and short-term institutions than dedicated and long-term institutions. Finally, stocks with a higher CSR-determined motivated institutional ownership earn a positive risk-adjusted return of 0.21% per month, suggesting that firms can adjust their corporate social deeds to attract more motivated institutional ownership and increase the demand for their stocks. Collectively, our evidence suggests that economic considerations outweigh social values in driving institutional investors' preferences for corporate social responsibility activities.
