||The Effect of Corporate Social Responsibility Performance to Stock Reactions of Joint Venture Termination Announcement
||Institute of International Business
joint venture termination
本研究以在2004年到2016年間曾中止合資案的102間母公司為研究對象，此外，我們採用Thomson Reuters ASSET4資料庫中的三個分數(分別為ESG controversies score、ESG score以及ESG combined score)來衡量企業的企業社會責任表現。實證結果顯示，(1)在企業社會責任表現上發生較少爭議的母公司，當中止合資案時，會產生較高的異常報酬。(2)不論是計畫中的或是無意的，合資中止的類型並不會影響企業社會責任與合資中止異常報酬間的關係。
When it comes to joint venture, previous studies mainly talk about joint venture formation. A few studies focus on joint venture termination and the influence on parent firms. As corporate social responsibility (CSR) becomes a popular issue among researchers and practitioners, many studies pay attention to the relationship between CSR engagement and financial performance of companies. Although there are several studies discuss joint venture termination and CSR separately, there is no existing research discusses the relationship between CSR and joint venture termination announcement returns. This study is the first literature that points out the importance of parent firm’s CSR performance to joint venture termination announcement returns.
This study adopts stakeholder theory and views CSR activities as a conflict-resolution mechanism. We examine the relationship between CSR performance and shareholders’ valuation from joint venture termination announcements. The sample of this study consist of 102 parent firms that terminated the joint ventures from 2004 to 2016. Besides, we use three scores in Thomson Reuters ASSET4 to measure CSR performance of firms which are ESG controversies score, ESG score, and ESG combined score.
The finding shows that ESG controversies score has a positive effect on joint venture termination announcement returns. That is, CSR performance with fewer controversies could serve as a conflict-resolution mechanism during joint venture termination. In addition, we find that the types of joint venture termination do not influence the relationship between CSR performance and joint venture termination announcement returns.
Ⅰ. INTRODUCTION 1
Ⅱ. LITERATURE REVIEW AND HYPOTHESES 5
Ⅲ. METHODOLOGY 12
3.1 Sample 12
3.2 Variables 12
3.3 Model specification 18
Ⅳ. RESULTS 19
4.1 Overall Sample 19
4.2 Regression Analysis 24
Ⅴ. CONCLUSION 31
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