CSRs and Their Impacts on Corporate Value

The issue of corporate social responsibility (CSR) has developed rapidly in recent years and has been widely discussed and valued by sectors both at home and abroad. Aside from implementing CSRs, enterprises have also been conducting reports on the subject. Environmental issues have been receiving increasing attention. Since 2002, the relevant authorities in Taiwan, such as the Ministry of Economic Affairs (MOEA), have assisted enterprises in understanding and implementing CSRs. Moreover, MOEA has asked enterprises on specific industries or have substantial scales to prepare CSR reports to provide related information. In this study, we examine whether companies with CSRs have better stock values. We further study the impact of different industries on the implementation of CSRs, such as the financial industry, retail, electronics, manufacturing, and food. Specifically, we examine whether stock value compensation and financial performance will be better than those of competitors and determine if investors give a higher market valuation for companies that implement CSRs—in other words, whether investors will be more inclined to invest in companies with CSRs than in those that do not implement CSRs. This study uses a multi-factor regression model to examine corporate citizenship. The samples are companies listed in Common Wealth Magazine from 2008 to 2017. The selected companies are mostly three-year profit-seeking public companies supervised by the Financial Supervisory Commission. The four criteria of the evaluation criteria are corporate governance, corporate commitment, social participation, and environmental protection. Different scores and average total scores are given, the digitized CSR, information on stock value compensation, financial performance, and company value are adopted. The Taiwan Economic Journal database is used to explore the relevance.

Keywords: Corporate Social Responsibility, Corporate Stock Price, Corporate Value, Corporate Governance, Multi-Factor Regression Model.