Abstract

This paper investigates whether and how emerging markets reward firms’ corporate social responsibility (CSR) performance. We focus on the socially responsible investment (SRI) index, which lists the top CSR performers and serves as a tool to help investors make investment decisions based on financial and social criteria. We empirically test the financial market responses to the announcements of pioneering SRI indices recently launched in Brazil, China, and South Africa. We find that inclusion on an SRI index in these markets is associated with positive abnormal returns. However, inclusion on an SRI index does not benefit all firms equally: the positive financial response is strengthened by R&D expenditures but weakened by advertising expenditures; it is stronger for firms that have expanded globally to developing countries than those to developed countries.

Details

Title
Does doing good lead to doing better in emerging markets? Stock market responses to the SRI index announcements in Brazil, China, and South Africa
Author
Zou, Peng 1 ; Wang, Qi 2   VIAFID ORCID Logo  ; Xie, Jinhong 3 ; Zhou, Chenxi 4 

1  Department of Marketing, School of Management, Harbin Institute of Technology, Harbin, China 
2  State University of New York at Binghamton, Binghamton, NY, USA; China Europe International Business School, Shanghai, China 
3  Warrington College of Business Administration, University of Florida, Gainesville, FL, USA 
4  School of Management, Xiamen University, Fu Jian, People’s Republic of China 
Pages
1-21
Publication year
2019
Publication date
Apr 2019
Publisher
Springer Nature B.V.
ISSN
00920703
e-ISSN
15527824
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.1007/s11747-019-00651-z
ProQuest document ID
2212335635
Copyright
Journal of the Academy of Marketing Science is a copyright of Springer, (2019). All Rights Reserved., © 2019. This work is published under http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.