The Effects of CSR Input on Valuation and Accounting Quality -- Biotechnology and Medical Industries
Journal of Finance and Accounting
Volume 4, Issue 3, May 2016, Pages: 146-156
Received: Apr. 22, 2016;
Accepted: May 9, 2016;
Published: May 25, 2016
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Ling-Hui Cho, Yung Zip Chemical Ind. Co., Ltd., Taichung, Taiwan
Li-Kai Liao, Department of Accounting, Tunghai University, Taichung, Taiwan
This paper examines the effects of the corporate social responsibility (CSR) input on company’s valuation and accounting quality by using the samples of biotechnology and medical industries. After considering the interaction term between the accounting quality and CSR, this paper further examine whether the companies which input higher CSR will not be wrong valuation from the market. The findings show that the companies with a higher CSR, their stock prices are less likely to be underpriced by the market. The companies with higher prior period’s CSR have better current period’s accounting quality. After controlling for the interaction between accounting quality and CSR, the companies which input higher CSR at current and lagged-one periods are less likely to be under-valuation by the market.
The Effects of CSR Input on Valuation and Accounting Quality -- Biotechnology and Medical Industries, Journal of Finance and Accounting.
Vol. 4, No. 3,
2016, pp. 146-156.
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