Skip to main content
main-content
Top

Hint

Swipe to navigate through the articles of this issue

22-04-2019 | Original Empirical Research | Issue 5/2020 Open Access

Journal of the Academy of Marketing Science 5/2020

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

Journal:
Journal of the Academy of Marketing Science > Issue 5/2020
Authors:
Peng Zou, Qi Wang, Jinhong Xie, Chenxi Zhou
Important notes
Rajendra Srivastava and V. Kumar served as Special Issue Guest Editors for this article.

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

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.
Literature
About this article

Other articles of this Issue 5/2020

Journal of the Academy of Marketing Science 5/2020 Go to the issue