The Influence of Corporate Social Responsibility on Firm Buybacks

• In Event: Miscellaneous Accounting Topics

Abstract

Purpose - This paper examines the effects of CSR disclosures on a firm’s decision to purchase back their own shares of stocks. Additionally, we examine whether the effect of CSR disclosures is stronger than the effect of CSR performance on the decision to repurchase shares.

Design/methodology/approach - Archival data was collected for the time-period of 2013 through 2018 and regression analysis was used to examine the impact of CSR disclosures on stock buybacks.

Findings - We find that CSR disclosures is significantly positive related to the number of shares that a firm buys back for Total CSR disclosures and all CSR dimensions of Social, Environmental and Governance. Additionally, we find that the effects of CSR disclosures are stronger for Total and the CSR dimensions of Social and Environmental than for CSR performance. For the environmental dimension of CSR, both disclosure and performance scores are significant.

Originality/Value -This study is one of the first to examine the impact of CSR disclosures on the decision to buy back stock for U.S. companies.

Authors

• Lois Mahoney, Eastern Michigan University

• Danield Brickner, Eastern Michigan University

• William LaGore, Eastern Michigan University