This paper investigated the importance of corporate social responsibility (CSR) reporting and its effects on the share price of the companies registered with the Ghana stock exchange. The study also investigates the indirect effect of CSR disclosure on the firm's stock price.
This study analyzed data from 2013 to 2018 of 25 listed companies registered on the Ghana Stock Exchange. Moreover, panel ordinary least square and robust least square estimators were employed to analyze data for robust findings.
The study's findings include the significant direct relationship between CSR disclosure and firms share price. The study also found that CSR disclosure by companies operating in environmentallysensitive industries is associated with higher market valuations.The study results confirm that CSR reporting is promoted with increased valuations; this study delivered evidence for involvement in such a strategy. The study findings do not call that all firms should be necessitated to provide CSR information.
The study highlights the importance of CSR reporting in a firm's performance and its benefits to shareholders and future investors. The CSR disclosure created debates among the stakeholders. However, it contributes to the existing literature by including highly sensitive environment-based companies to answer how CSR reporting of highly sensitive environment positively affects the stock price.
Corporate social responsibility disclosure, Firm value, Ghana stock exchange, Value relevance, Developing countries
