CN EN
Advanced

Does doing good lead to doing better in emerging markets? Stock market responses to the SRI index announcements in Brazil, China, and South Africa

Indexed by

SSCI Scopus ABDC-A*

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.

Rajendra Srivastava and V. Kumar served as Special Issue Guest Editors for this article.

Keyword

Author Community

[Zou, P.] Harbin Institute of Technology

[Wang, Q.] State University of New York at Binghamton; China Europe International Business School

[Xie, J.] Warrington College of Business Administration, University of Florida, P.O. Box 117155, Gainesville, Florida, 32611‐7155 USA

[Zhou, C.] Xiamen University


Related Article

Source

Journal of the Academy of Marketing Science

ISSN:0092-0703

Year:2020

Issue:48

Page:966-986

ESI Discipline:ECONOMICS & BUSINESS;

Cited Count
W
Loading...
C
Loading...
Get Fulltext
Rights and Licenses
Related Keywords
Communities & Collections
Access Stats
Creative Commons Licence
The content of CEIBS Research Online is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0).