Empirical research on the relationship of CSR and CFP based investors' reaction: Evidence form Chinese stock market

摘要

Following the instrumental stakeholder theory, we present hypotheses about the relationship of CSR and CFP based investors' reaction. This research reveals that investors can declare their attitude to CSR by buying or selling stocks of companies which taken CSR actions, and these investors' behaviors can affect CFP. In the part of empirical research, we take the publications of South Weekend CSR ranking as focal event and examine hypotheses by the method of event study. The results of data analysis show that investors' attitude to CSR is positive and the companies which engage in CSR action will be rewarded by investors through abnormal returns in stock price. The empirical results support the hypothesis that CSR can affect CFP positively through investors' reaction.