AbstractMotivated from the blurred literature on the relationship between CSR and IPO’s performance, this dissertation aims to investigate how CSR influences short-term and long-term performance of the US IPOs, which are issued from 1998 to 2018 in the US stock markets. Upon the outcome of three independent research studies, this study has revealed that CSR has the negative but insignificant impacts on IPO’s under-pricing, meaning that CSR disclosure cannot serve as a signaling tool to reduce the asymmetric information facing the US IPOs. The low CSR investment level of the US IPOs is a key determinant of this insignificant relationship. On the other hand, this study has found that the US IPOs that engaged in CSR outperformed the US IPOs that did not engage in CSR. However, there are not significant differences in the long-term performance among IPOs that invested in CSR.
US IPOs that engaged in CSR have double chance to survive compared to those that did not engage in CSR. CSR disclosure index positively links with IPO’s survival although such linkage is modest. The investment in CSR and CSR disclosure, thus, is critical to the US IPOs since CSR significantly influences IPOs’ performance in the long- term and increase the likelihood of IPOs’ survival through the improvements of relationships with stakeholders. In the short-term, since CSR disclosure does not act as a signaling mechanism to reduce asymmetric information, IPOs need to balance their investment in CSR and other projects to ensure the achievements of dual goals – the long-term performance and survival and the short-term financial soundness.
|Date of Award||1 Mar 2023|
|Supervisor||Konstantinos Kallias (Supervisor), Song Zhang (Supervisor) & Karen McBride (Supervisor)|