How are CSR issues processed?

What drives investor response to CSR performance reports?

Andres Guiral (Yonsei University School of Business), Doocheol Moon (Yonsei University School of Business), Hun-Tong Tan (Nanyang Technological University) and Yao Yu (University of Massachusetts Amherst) study whether the CSR performance relates to activities that are integrated into a firm’s core business practices or not. They also investigate whether the CSR performance is positive or negative. Using an experiment, they find that investors likely use a heuristic approach to process immaterial and positive CSR issues, and a more deliberate and systematic approach to process material or negative CSR issues.

Read full paper: Guiral, A., D. Moon, H. Tan, and Y. Yu. 2020. “What Drives Investor Response to CSR Performance Reports?” Contemporary Accounting Research. 37: 101-130. doi:10.1111/1911-3846.12521

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