Journal of Accounting and Economics Vol. 57 No. 2-3 2014
Commitment to social good and insider trading
Abstract
A firm׳s investment in corporate social responsibility (CSR) builds a positive image of caring for social good and imposes additional costs on executives׳ informed trading, which is widely perceived self-serving. We thus expect executives of CSR-conscious firms to be more likely to refrain from informed trading. We find that executives of CSR-conscious firms profit significantly less from insider trades and are less likely to trade prior to future news than executives of non-CSR-conscious firms. The negative association between CSR and insider trading profits is more pronounced when executives׳ personal interests are more aligned with the interests of the firm.
- DOI
- 10.1016/j.jacceco.2014.03.001
- Volume
- 57
- Issue
- 2-3
- Pages
- 149-175
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref