Home|Journals|Articles by Year|Audio Abstracts

Research Article

EEO. 2021; 20(2): 760-766

Do the individual investors care about corporate social responsibility?

Kaleem Ullah*, Shahid Jan Kakakhel, Shakeel Khan, Bushra Zulfiqar, Imran Khan, Muhammad Kamran Khan.


Nowadays there is an urge that a company activities and responsibilities having an impact on the environment, termed as corporate social responsibility activities must be disclosed to its stakeholders. This study investigates how investment decisions of an investor are affected by the notion of Corporate Social Responsibility (CSR). Data was collected through a questionnaire, circulated to a representative sample (n=475) of Pakistani stock exchange investors. In this study descriptive stat, correlation and regression are used for analysis. Our results show that behavioral biases significantly affect the investment decisions of an individual investor. Findings show that high CSR involvement firms tend to over-invest. We demonstrate that both Defend and Prospect strategies can mitigate over-investment by interacting with high CSR firms. The results show that firms CSR strategy plays an important role in shaping investment behavior of the investors. Further analysis can use psychological bias and other accounting data metrics such as Earning per Share (EPS) to assess other behavior in investment decision-making.

Key words: Behavioral finance, corporate social responsibility, investment decision

Full-text options

Share this Article

Online Article Submission
• ejmanager.com

ejPort - eJManager.com
Refer & Earn
About BiblioMed
License Information
Terms & Conditions
Privacy Policy
Contact Us

The articles in Bibliomed are open access articles licensed under Creative Commons Attribution 4.0 International License (CC BY), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.