The role of social capital in price efficiency: International evidence

Chin Wen Hsin; Shu Cing Peng

doi:10.1016/j.irfa.2023.102740

The role of social capital in price efficiency: International evidence

Chin Wen Hsin, Shu Cing Peng

Department of Finance

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

This study finds that firms with higher social capital and trust, as measured by firm environmental and social (E&S) performance, demonstrate better stock price efficiency. The result in a sample of 45 countries remains robust to alternative approaches addressing the endogeneity concerns. This relation is mainly derived from a firm's E&S engagements related to third parties and the whole of society, which regulate the firm's information environment after accounting for other influences. The positive role of E&S performance is further shaped by the firm's associated macro-level trust and social capital, as proxied by the market's cultural and institutional factors.

Original language	English
Article number	102740
Journal	International Review of Financial Analysis
Volume	89
DOIs	https://doi.org/10.1016/j.irfa.2023.102740
State	Published - Oct 2023

Keywords

Corporate social responsibility
Information diffusion
Price delay
Social capital
Trust

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.irfa.2023.102740

Skill Mismatching: Evidence from the Amendment on Regulation S-K in 2009
Peng, S.-C. (PI)
1/09/19 → 30/11/20
Project: Research

Cite this

@article{1b58cfb8f894440e83485ebaa26a6ee8,

title = "The role of social capital in price efficiency: International evidence",

abstract = "This study finds that firms with higher social capital and trust, as measured by firm environmental and social (E&S) performance, demonstrate better stock price efficiency. The result in a sample of 45 countries remains robust to alternative approaches addressing the endogeneity concerns. This relation is mainly derived from a firm's E&S engagements related to third parties and the whole of society, which regulate the firm's information environment after accounting for other influences. The positive role of E&S performance is further shaped by the firm's associated macro-level trust and social capital, as proxied by the market's cultural and institutional factors.",

keywords = "Corporate social responsibility, Information diffusion, Price delay, Social capital, Trust",

author = "Hsin, {Chin Wen} and Peng, {Shu Cing}",

note = "Publisher Copyright: {\textcopyright} 2023",

year = "2023",

month = oct,

doi = "10.1016/j.irfa.2023.102740",

language = "???core.languages.en_GB???",

volume = "89",

journal = "International Review of Financial Analysis",

issn = "1057-5219",

}

TY - JOUR

T1 - The role of social capital in price efficiency

T2 - International evidence

AU - Hsin, Chin Wen

AU - Peng, Shu Cing

PY - 2023/10

Y1 - 2023/10

N2 - This study finds that firms with higher social capital and trust, as measured by firm environmental and social (E&S) performance, demonstrate better stock price efficiency. The result in a sample of 45 countries remains robust to alternative approaches addressing the endogeneity concerns. This relation is mainly derived from a firm's E&S engagements related to third parties and the whole of society, which regulate the firm's information environment after accounting for other influences. The positive role of E&S performance is further shaped by the firm's associated macro-level trust and social capital, as proxied by the market's cultural and institutional factors.

AB - This study finds that firms with higher social capital and trust, as measured by firm environmental and social (E&S) performance, demonstrate better stock price efficiency. The result in a sample of 45 countries remains robust to alternative approaches addressing the endogeneity concerns. This relation is mainly derived from a firm's E&S engagements related to third parties and the whole of society, which regulate the firm's information environment after accounting for other influences. The positive role of E&S performance is further shaped by the firm's associated macro-level trust and social capital, as proxied by the market's cultural and institutional factors.

KW - Corporate social responsibility

KW - Information diffusion

KW - Price delay

KW - Social capital

KW - Trust

UR - http://www.scopus.com/inward/record.url?scp=85164357479&partnerID=8YFLogxK

U2 - 10.1016/j.irfa.2023.102740

DO - 10.1016/j.irfa.2023.102740

M3 - 期刊論文

AN - SCOPUS:85164357479

SN - 1057-5219

VL - 89

JO - International Review of Financial Analysis

JF - International Review of Financial Analysis

M1 - 102740

ER -

The role of social capital in price efficiency: International evidence

Abstract

Keywords

UN SDGs

Access to Document

Fingerprint

Projects

Skill Mismatching: Evidence from the Amendment on Regulation S-K in 2009

Cite this