Becchetti, Leonardo
[Verfasser:in]
;
Ciciretti, Rocco
[Sonstige Person, Familie und Körperschaft];
Giovannelli, Alessandro
[Sonstige Person, Familie und Körperschaft]
Corporate Social Responsibility and Earnings Forecasting Unbiasedness
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 21, 2012 erstellt
Beschreibung:
We investigate the relationship between Corporate Social Responsibility (hereafter CSR) and I/B/E/S analysts' earnings per share (EPS) forecasts using a large sample of US firms for the 1992-2011 period. Based on literature fi ndings we decompose the CSR eff ect into four factors: accounting opacity, corporate governance, stakeholder risk, and overinvestment. We document that all of them signi ficantly aff ect both the absolute forecast error on EPS and its standard deviation controlling for forecast horizon, number of analysts and forecasts, and for year, industry, broker house eff ects. Consistently with our ex ante hypotheses, overinvestment, stakeholder risk and accounting opacity have a positive e ffect increasing both dependent variables, while corporate governance quality has a negative e ffect. A crucial aspect of our fi ndings is that high CSR quality in terms of the four factors (i.e. accounting transparency, high corporate governance quality, stakeholder risk mitigation and absence of overinvestment) contributes to making earning forecasts unbiased as unbiasedness is generally met in the subsample of the top 33 percent CSR quality companies, while it is markedly violated in the subsample of the bottom 33 percent CSR companies