Title: CSR and firm value: stock price response to repeated unfaithful disclosure in the Korean Stock Market

Authors: Wonsik Sul; Yejee Lee

Addresses: Division of Business Administration, Sookmyung Women's University, Yongsan, Seoul, South Korea ' Division of Business Administration, Sookmyung Women's University, Yongsan, Seoul, South Korea

Abstract: Today, the importance of CSR is increasing, and disclosure is one of the indicators of the transparency of corporate governance, which constitutes an important component of CSR. However, unfaithful disclosures are increasing in Korea, with the same firms repeating them. This study verified the effects of repeated unfaithful disclosures on stock prices, using data from 2012 to 2017. First, disclosure conditions were classified. The stock market response was then analysed through cumulative average abnormal returns. The findings showed that the negative effect on firm value was greater when a firm was designated as an unfaithful disclosure corporation for the second time. Moreover, warnings about designations and actual designations were perceived as negative news, whereas non-designations were perceived as positive news.

Keywords: corporate social responsibility; unfaithful disclosure; firm value; stock price.

DOI: 10.1504/EJIM.2025.149295

European Journal of International Management, 2025 Vol.27 No.3, pp.447 - 472

Received: 16 Apr 2020
Accepted: 22 Jul 2020
Published online: 24 Oct 2025 *

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