Corporate Social Responsibility and its Influence on the Share Prices of the Company

In the last decades the globalization, market competition and the emergence of the ethical consumption are forcing firms to consider both the problem of profits maximization and the sustainability and growth of the company. In order to respect preferences of all the stakeholders and to build sustainable business the companies started to implement the practice of the corporate social responsibility (CSR). Different studies of the impact of CSR on the company economic performance have shown that the implementation of this practice is one of the factors that helps to create the value of the firm. Based on this, this paper examines the relationship between CSR practices conducted by the company and the price of its shares in Russian stock market. Environmental responsibility ratings, financial statements and financial databases for the period from 2014 to 2018 will be used for the measurement of CSR, share prices of the company and control variables. In order to identify these relationships regression and event study analysis will be applied. Positive findings of this study are supposed to encourage investing based on valuation of the social responsibility practice of the company.