Authors: Theofanis Karagiorgos

Abstract:

This paper is an attempt to explore the relationship of CSR and firms’ financial performance in Greek firms. Based on stakeholder theory and mainly on the theory of “good management”, we try to find out if an improvement in CSR actions results in higher stock returns. Our empirical analysis will test whether there is an impact of CSR performance on stock returns, using voluntary disclosures, based on a sample of Greek listed companies. The findings show that there is a positive correlation among stock returns and CSR performance in Greek companies. In operational level, these results aim at persuading managers to implement CSR actions in a greater extent in order to enhance firm market efficiency.

JEL classification: C14, C23