Corporate Social Responsibility and SEO Announcement Effects Around the World

This paper analyzes the role of Corporate Social Responsibility during seasoned equity offerings. On an international dataset, I identify a positive relationship between CSR performance and SEO announcement returns that is weakened, if the level of investor protection is high. At the same time, the relationship is weakened, if the level of stakeholder orientation is high. The results suggest that high CSR firms may benefit from more trust from shareholders to the effect that financing decisions are looked on more favorably, especially when investors are in need and open for an additional soft signal of quality