Understanding how investors respond to different social responsibility communications: an empirical analysis of Japan
Purpose – This study explores the variance in investor responses to the corporate social responsibility (CSR) performance of firms, as influenced by information sources and investor types. Design/methodology/approach – This study applies a short-term event study and cross-sectional analysis with uni...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2024-05-01
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| Series: | Journal of Asian Business and Economic Studies |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JABES-08-2023-0309/full/pdf |
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| _version_ | 1849339382876602368 |
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| author | Miho Murashima |
| author_facet | Miho Murashima |
| author_sort | Miho Murashima |
| collection | DOAJ |
| description | Purpose – This study explores the variance in investor responses to the corporate social responsibility (CSR) performance of firms, as influenced by information sources and investor types. Design/methodology/approach – This study applies a short-term event study and cross-sectional analysis with unique CSR datasets obtained from newspaper articles and the Dow Jones Sustainability Index. Findings – Investor reactions are significantly shaped by their sources of information. Individual investors are found to predominantly respond to accessible news announcements, whereas institutional investors show heightened sensitivity to adverse news from both scrutinized sources. Foreign investors, mirroring institutional investors' patterns, uniquely react positively to index additions. Research limitations/implications – Investors’ assessment of CSR activities varies due to the differing sources of information obtained; further, it is affected by the type of investor. Practical implications – The findings guide public relation managers in strategizing CSR communication toward diverse investor types. This includes recommending targeted approaches for Japanese individual investors through newspapers and TV, exercising caution in disseminating adverse news to Japanese institutions, and promoting and justifying CSR actions to foreign investors. It underscores the need for a strategic investor relations frameworks that considers accessibility, literacy, and investors' interests. Originality/value – This study examines the relationship between sources of information for CSR activities and investors’ responses, an area under-represented in the literature. The author uses CSR announcement data, collected from newspapers to make the results more accurate and relevant. |
| format | Article |
| id | doaj-art-71ec5e9d6cab4fc992f3b48d6f61cfbb |
| institution | Kabale University |
| issn | 2515-964X |
| language | English |
| publishDate | 2024-05-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Asian Business and Economic Studies |
| spelling | doaj-art-71ec5e9d6cab4fc992f3b48d6f61cfbb2025-08-20T03:44:07ZengEmerald PublishingJournal of Asian Business and Economic Studies2515-964X2024-05-0131213714810.1108/JABES-08-2023-0309Understanding how investors respond to different social responsibility communications: an empirical analysis of JapanMiho Murashima0College of Business, Rikkyo University, Tokyo, JapanPurpose – This study explores the variance in investor responses to the corporate social responsibility (CSR) performance of firms, as influenced by information sources and investor types. Design/methodology/approach – This study applies a short-term event study and cross-sectional analysis with unique CSR datasets obtained from newspaper articles and the Dow Jones Sustainability Index. Findings – Investor reactions are significantly shaped by their sources of information. Individual investors are found to predominantly respond to accessible news announcements, whereas institutional investors show heightened sensitivity to adverse news from both scrutinized sources. Foreign investors, mirroring institutional investors' patterns, uniquely react positively to index additions. Research limitations/implications – Investors’ assessment of CSR activities varies due to the differing sources of information obtained; further, it is affected by the type of investor. Practical implications – The findings guide public relation managers in strategizing CSR communication toward diverse investor types. This includes recommending targeted approaches for Japanese individual investors through newspapers and TV, exercising caution in disseminating adverse news to Japanese institutions, and promoting and justifying CSR actions to foreign investors. It underscores the need for a strategic investor relations frameworks that considers accessibility, literacy, and investors' interests. Originality/value – This study examines the relationship between sources of information for CSR activities and investors’ responses, an area under-represented in the literature. The author uses CSR announcement data, collected from newspapers to make the results more accurate and relevant.https://www.emerald.com/insight/content/doi/10.1108/JABES-08-2023-0309/full/pdfCorporate social responsibilityEvent studyInvestor reactionMedia communicationSustainability index |
| spellingShingle | Miho Murashima Understanding how investors respond to different social responsibility communications: an empirical analysis of Japan Journal of Asian Business and Economic Studies Corporate social responsibility Event study Investor reaction Media communication Sustainability index |
| title | Understanding how investors respond to different social responsibility communications: an empirical analysis of Japan |
| title_full | Understanding how investors respond to different social responsibility communications: an empirical analysis of Japan |
| title_fullStr | Understanding how investors respond to different social responsibility communications: an empirical analysis of Japan |
| title_full_unstemmed | Understanding how investors respond to different social responsibility communications: an empirical analysis of Japan |
| title_short | Understanding how investors respond to different social responsibility communications: an empirical analysis of Japan |
| title_sort | understanding how investors respond to different social responsibility communications an empirical analysis of japan |
| topic | Corporate social responsibility Event study Investor reaction Media communication Sustainability index |
| url | https://www.emerald.com/insight/content/doi/10.1108/JABES-08-2023-0309/full/pdf |
| work_keys_str_mv | AT mihomurashima understandinghowinvestorsrespondtodifferentsocialresponsibilitycommunicationsanempiricalanalysisofjapan |