Did the Creation of ISE Created Value to Companies?

Informações

Código: FIN2513
Divisão: FIN - Finanças
Tema de Interesse: FIN-B - Finanças Corporativas

Autores

Felipe Bogéa, Anderson Saber Campos, David Camino

Resumo

The present research conducted an event study to evaluate the effect of Corporate SocialResponsibility (CSR) on share price, following approach work of Curran and Moran’s (2007).The share price of a company was used as a measure of the companies’ financialperformance. The announcement of the constituents of the Índice de SustentabilidadeEmpresarial (ISE) was defined as the proxy for CSR. None of the abnormal returns andCumulative Abnormal Returns were statistically significant from zero, although the meanabnormal return for day 0 was positive. This work did not find evidence of positive abnormalreturns following the announcements of companies being included in ISE. On the other hand,there was also no evidence of negative abnormal returns. The lack of significant results havebeen found in previous distinct work for international indexes and also for the Brazilian indexand it does not necessarily mean absence of relation between good social practices andcreation of value. There are some possible explanations for the lack of relation. Among thepossible explanations, the low power of t-test is a possibility that was found in this paper, butthat has not been acknowledged in other works.

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