Purpose

Corporate social responsibility (CSR) is considered one of the crucial branding and promotional tools for banks to legitimise their role in society to become socially and environmentally responsible corporate citizen. The purpose of this study is to investigate the effect of CSR on stock price volatility of the US banks. This study further examined the moderating role of tax on the relationship between CSR and stock price volatility.

Design/methodology/approach

This study uses the random-effects panel regression estimation technique to test the hypotheses. The authors include a sample of 37 US banks from 2013 to 2017 with 144 bank-years observation. The authors consider the environmental, social and governance (ESG) scores from Refinitiv as a proxy for CSR. The financial data are also collected from the Refinitiv Datastream database.

Findings

This study finds a significant and positive relationship between CSR and stock price volatility, which indicates that shareholders of the US banks may not prefer excess concentration on CSR because of the additional cost of investment associated with implementing CSR. Also, tax payments and stock price volatility show a significant positive association, which implies that there is a higher possibility of an increase in stock price volatility if the tax rate increases. Generally, shareholders are not interested in paying more taxes, so they may swap the market instead of paying more tax. On the other hand, the authors find a non-significant moderating effect of tax payment on CSR-volatility nexus.

Originality/value

Previous studies mainly focussed on CSR and financial performance of banks. Conversely, studies focussing on CSR and stock volatility are limited. This study will fill the gap in the literature by considering the effect of CSR on the stock price volatility of the US banks.

中文翻译：

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企业社会责任对美国银行股价波动的影响：税收的适度作用

目的

企业社会责任（CSR）被认为是银行将其在社会中的角色合法化以成为对社会和环境负责的企业公民的重要品牌和促销工具之一。这项研究的目的是调查企业社会责任对美国银行股价波动的影响。这项研究进一步检验了税收对企业社会责任与股价波动之间关系的调节作用。

设计/方法/方法

这项研究使用随机效应面板回归估计技术来检验假设。作者纳入了2013年至2017年的37家美国银行的样本，并进行了144个银行年的观察。作者认为Refinitiv的环境，社会和治理（ESG）得分代表了CSR。财务数据也从Refinitiv Datastream数据库中收集。

发现

这项研究发现企业社会责任与股价波动之间存在显着的正相关关系，这表明美国银行的股东可能不希望过度集中于企业社会责任，因为与实施企业社会责任相关的投资成本较高。此外，纳税额和股票价格的波动性也显示出显着的正相关性，这意味着如果税率提高，股票价格的波动性就更有可能上升。通常，股东对支付更多税款不感兴趣，因此他们可能会交换市场而不是支付更多税款。另一方面，作者发现，纳税对企业社会责任波动关系的调节作用不显着。

创意/价值

以往的研究主要集中在企业社会责任和银行的财务绩效上。相反，针对企业社会责任和股票波动性的研究是有限的。通过考虑企业社会责任对美国银行股价波动的影响，本研究将填补文献中的空白。