Market Effect of Listed Corporate Social Responsibility Report Disclosure—Based on Combined Test of the Double Events

Abstract

CCTV Financial 50 Index1, the first stock index released by China’s state media, was launched on June 6, 2012. As one of the elements looked at by the index to selected 50 best performance listed companies, social responsibility becomes a hot spot of social attention. This paper investigates the market effect of listed companies in A-share market which disclosed social responsibility report in 2010. Results of the study show that the information in Corporate Social Responsibility (CSR) Report has no significant market effect as the disclosure of CSR Report. However, when the White Book of Chinese CSR Report is released, the information in CSR Report generates significant market effect. Moreover, the higher the quality of CSR Report disclosed, the more significant the market effect. In conclusion, the White Book of Chinese CSR Report has a reinforcing action on the information in CSR Report.