Does Short Selling Improve Corporate Social Responsibility?

DOI

10.2991/wrarm-17.2017.40How to use a DOI?

Keywords

Corporate Social Responsibility; Margin trading; Signaling; Short sale

Abstract

Using difference-in-difference (DID) model, this paper studies firms' incentives to engage in corporate social responsibility (CSR) activities based on the quasi-natural experiment. We find that firms experiencing an exogenous increase in their exposure to short sales significantly raise their CSR activities. The results are stronger for firms that are more short sold, higher ratio of the largest shareholder, internal control more effectively. Our evidence is consistent with the argument of CSR being a signaling device used by managers to reduce information asymmetry.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Renshu Yuan
AU  - Jiguo Yang
AU  - Lei Gao
PY  - 2017/11
DA  - 2017/11
TI  - Does Short Selling Improve Corporate Social Responsibility?
BT  - Proceedings of the Fifth Symposium of Risk Analysis and Risk Management in Western China (WRARM 2017)
PB  - Atlantis Press
SP  - 226
EP  - 231
SN  - 1951-6851
UR  - https://doi.org/10.2991/wrarm-17.2017.40
DO  - 10.2991/wrarm-17.2017.40
ID  - Yuan2017/11
ER  -