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Strange bedfellows? Voluntary corporate social responsibility disclosure and politics
Author(s) -
Griffin Paul A.,
Sun Yuan
Publication year - 2013
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12033
Subject(s) - corporate social responsibility , politics , presidential system , voting , accounting , stock (firearms) , democracy , corporate action , proxy (statistics) , proxy voting , business , portfolio , corporate governance , political action , political science , shareholder , public relations , finance , law , group voting ticket , mechanical engineering , machine learning , computer science , engineering
We show a reliable association between voluntary corporate social responsibility ( CSR ) disclosure and company political interests, which we proxy by company employees’ contributions to political action committees and statewide voting in presidential elections. This relation is most pronounced for the contributions of D emocratic employees at companies in states that vote for the D emocratic presidential candidate. We also show a positive association between corporate political contributions and excess stock returns. A portfolio strategy of investing based on company size, CSR disclosure intensity and corporate political contributions produces a significant positive mean excess stock return of 4.5 per cent over 3 months following CSR disclosure.