What Drives Investor Response to CSR Performance Reports?

Andres Guiral, Doocheol Moon, Hun Tong Tan, Yao Yu

Research output: Contribution to journalArticle


Recent research finds that investors' assessments of a stock's fundamental value are influenced by corporate social responsibility (CSR) performance through the affect-as-information heuristic. We extend prior research by examining two boundary conditions for the use of this heuristic: (i) whether the CSR performance relates to activities that are integrated in a firm's core business practices (material CSR issues) or not (immaterial CSR issues), and (ii) whether the CSR performance is positive or negative. Employing an experimental method, we find that the affect-as-information heuristic applies only to immaterial CSR issues but not to material CSR issues, and only to positive but not negative CSR performance. Our findings suggest that investors likely use a heuristic approach to process immaterial and positive CSR issues, and a more deliberate and systematic approach to process material or negative CSR issues. Our study has both practical and theoretical implications.

Original languageEnglish
Pages (from-to)101-130
Number of pages30
JournalContemporary Accounting Research
Issue number1
Publication statusPublished - 2020 Mar 1


All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

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