Chong and Liu (2013)

Chong, Beng Soon, and Zhenbin Liu.  “Does Corporate Social Responsibility Matter? Evidence from New Equity Issues.”  Working paper (Nanyang Technological University, Singapore), May 2013.

From the authors' abstract:  "This paper provides new evidence in support of the theory that corporate social responsibility (CSR) affects equity demand; which, in turn, affects equity valuation. [W]e find that (1) issuers with greater CSR concerns are more likely to revise downwards the terms of their stock offerings; (2) CSR affects the probability of the over- allotment option being exercised; and (3) the change in the percentage of institutional holdings around the issue date is positively (negatively) related to CSR strengths (concerns). We also find supporting evidence on the effects of CSR on the shape of the firm’s equity demand curve. [W]e [also] find that CSR affects the underpricing of new equity issues, SEO announcement returns, and long-run return performance."