Abstract
The stock market reaction to two very different corporate social investments (the 1977 Sullivan Principles adoption announcement and the 1990 McDonald's Corporation environmental statement) is explored. A market model event study methodology is employed using daily stock returns. The results are that the stock market appears to have ignored the 1977 announcement, but rewarded the 1990 event. Future research and possible managerial implications are discussed.
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Steve McMillan is a doctoral candidate in General and Strategic Management. His research focuses on organizational policies of openness versus secrecy with scientific information, and the management of corporate intangible assets.
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McMillan, G.S. Corporate social investments: Do they pay?. J Bus Ethics 15, 309–314 (1996). https://doi.org/10.1007/BF00382956
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DOI: https://doi.org/10.1007/BF00382956