Corporate Social Responsibility and Demand for New Equity Issues

Beng Soon Chong, Zhenbin Liu

Research output: Working paper

Abstract

Consistent with the hypothesis that equity demand is negatively (positively) affected by CSR concerns (strengths) of the issuer, we find that (1) issuers with greater CSR concerns are more likely to revise downwards the terms (offer price, number of shares offered, and total proceeds raised) of their stock offerings; (2) the probability of the over-allotment option being exercised is negatively related to CSR concerns in SEO issues, but is positively related to CSR strengths in IPO issues; and (3) the change in the percentage of institutional holdings around the issue date is positively (negatively) related to CSR strengths (concerns).
Original languageEnglish
PublisherSSRN
Number of pages42
DOIs
Publication statusPublished - 1 Jul 2016

Publication series

NameNanyang Business School Research Paper Series
NameS&P Global Market Intelligence Research Paper Series

User-Defined Keywords

  • Initial Public Offerings
  • Seasoned Equity Offerings
  • Equity Demand
  • Price Revisions
  • Over-allotment Option
  • Corporate Social Responsibility (CSR)
  • Environmental, Social and Governance (ESG)

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