caa a22 4500 605482977 CHVBK 20210128100429.0 cr unu---uuuuu 210128e20150401xx s 000 0 eng 10.1007/s10551-014-2082-2 doi (NATIONALLICENCE)springer-10.1007/s10551-014-2082-2 Legal vs. Normative CSR: Differential Impact on Analyst Dispersion, Stock Return Volatility, Cost of Capital, and Firm Value [Elektronische Daten] [Maretno Harjoto, Hoje Jo] This study examines how the sell-side analysts interpret firms' corporate social responsibility (CSR) activities. Specifically, we examine the differential impact of overall, legal, and normative CSR on the analysts' earnings forecast dispersion, stock return volatility, cost of equity capital, and firm value. Employing a sample of U.S. public firms during 1993-2009, we find that overall CSR intensities reduce analyst dispersion of earnings forecast, volatility of stock return and cost of capital (COC), and increase firm value. However, its impact is reduced for firms with better accounting and disclosure quality. When we disaggregate CSR into legal and normative CSR, we find that legal (normative) CSR decreases (increases) analysts' dispersion, stock return volatility, and COC, while legal (normative) CSR increases (decreases) firm value. The sell-side analysts tend to have less (greater) information asymmetry regarding the net benefits of pursuing CSR that is (not) required by laws. We find, however, that the benefit of having normative CSR realized in 1year lag such that analyst dispersion, stock return volatility, COC decrease, respectively, and firm value increases. Furthermore, we find that the benefit of normative CSR is offset for firms with higher accounting and disclosure quality. Springer Science+Business Media Dordrecht, 2014 Corporate social responsibility nationallicence Legal CSR nationallicence Normative CSR nationallicence Analyst dispersion nationallicence Cost of capital nationallicence Firm value nationallicence Harjoto Maretno Graziadio School of Business and Management, Pepperdine University, Malibu, CA, USA aut Jo Hoje Santa Clara University, Santa Clara, CA, USA aut Journal of Business Ethics Springer Netherlands 128/1(2015-04-01), 1-20 0167-4544 128:1<1 2015 128 10551 https://doi.org/10.1007/s10551-014-2082-2 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10551-014-2082-2 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Harjoto Maretno Graziadio School of Business and Management, Pepperdine University, Malibu, CA, USA aut NATIONALLICENCE 700 1- Jo Hoje Santa Clara University, Santa Clara, CA, USA aut NATIONALLICENCE 773 0- Journal of Business Ethics Springer Netherlands 128/1(2015-04-01), 1-20 0167-4544 128:1<1 2015 128 10551