What is it about?
This study examines whether and how corporate social responsibility (CSR) intensity affects investment performance directly, as a signal of investor trust, and indirectly, by impacting management earnings forecasts accuracy.We empirically examined the direct effect of CSR intensity on investment performance, as well as its moderating effect through the quality of management earnings forecasts disclosure for Japanese listed firms from 2007 to 2016.
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Why is it important?
Stakeholder engagement in order to build investor trust is not only essential for corporate sustainability and long-term success but also a key determinant in well-functioning capital markets with unstable public trust in business and finance.
Perspectives
This study is an outcome of long-standing research with the co-author. I hope investors as well as corporate managers more deeply understand that value-relevant CSR strategies makes discipline management for corporate sustainability and mitigate myopic market reaction.
Megumi Suto
Waseda Daigaku
Read the Original
This page is a summary of: Corporate social responsibility intensity, management earnings forecast accuracy, and investor trust: Evidence from Japan, Corporate Social Responsibility and Environmental Management, August 2020, Wiley,
DOI: 10.1002/csr.2022.
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