The Impact of Corporate Social Responsibility Disclosure on Investment Efficiency and stock Price Crash Risk Empirical Study

Document Type : Original Article

Authors

1 Faculty of commerc

2 faculty of commerce

Abstract

Abstract:
Research objective: To determine the impact of corporate social responsibility disclosure on investment efficiency and stock price crash risk, Design and methodology: The research relied on the applied study by applying it to a sample representing (34) companies listed on the EGX 100 index with a total number of (170) observations and distributed over a group of sectors for the period from 2017-2021.The research relied on measuring Corporate social responsibility disclosure based on the (ESG Score) obtained by each of the sample companies for the three dimensions of environmental, social and governance, and to measure investment efficiency according to the study model of Biddle et al. (2009), and stock price crash risk according to the negative skewness coefficient of returns (NCSKEW) and the volatility of returns from the bottom up (DUVOL), and to test the research hypotheses, a set of statistical methods was relied upon, such as Pearson’s correlation coefficient and multiple linear regression models.
Research Results: There is a statistically significant positive (negative) effect of corporate social responsibility disclosure on investment efficiency (inefficiency investment) and a statistically significant negative effect of corporate social responsibility disclosure on over- and under-investment, which is consistent with the perspective of the signaling and stakeholder theories.There is a positive and significant correlation between corporate social responsibility disclosure and the risk of stock price crash, which is consistent with the perspective of the agency theory.

Keywords

Benha Journal of Humanities Sciences
Volume 3, Issue 2
March and April 2024
Pages 365-389

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