A two-level portfolio model based on expected values of corporate social responsibility

DOI

10.2991/978-94-6463-260-6_69How to use a DOI?

Keywords

corporate social responsibility; portfolio; expected value; multi-level model

Abstract

Modern economic theory believes that enterprises, one of the stock issuers in the financial market, serve as a fundamental "mechanism for resource allocation". The theory also holds that the mechanism can achieve the optimal allocation of the entire economic resources while simultaneously reducing the "transaction costs" of the entire society. However, the shortsightedness and profit-seeking nature of enterprises lead to enormous issues with economic development. These issues include excessive consumption of resources, continuous accumulation of industrial pollution, and the deteriorating ecological environment, triggering a series of social, environmental, and economic problems. Hence, solving the contradiction between economic growth and environmental protection, and achieving sustainable economic and social development has become an urgent problem to be solved. Corporate social responsibility receives increasing attention nowadays, and more and more scholars are carrying out their research. The present research constructs a multi-level portfolio model based on expected values of corporate social responsibility. In particular, the research utilizes the stock returns and corporate social responsibility performance of Chinese listed companies to analyze the relationship between them. The research shows that the stock returns of Chinese-listed companies are negatively correlated with their social responsibilities.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xiong Deng
AU  - Yan li Liu
PY  - 2023
DA  - 2023/09/28
TI  - A two-level portfolio model based on expected values of corporate social responsibility
BT  - Proceedings of the 2023 International Conference on Management Innovation and Economy Development (MIED 2023)
PB  - Atlantis Press
SP  - 551
EP  - 559
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-260-6_69
DO  - 10.2991/978-94-6463-260-6_69
ID  - Deng2023
ER  -