Abstract:

This paper aims to analyze the impact of Corporate Social Responsibility (CSR) on stock price and other market variables, such as dividends and stock return for the companies listed on Bucharest Stock Exchange (BSE). This study investigates the differences in the market variables of companies that show CSR compared with those that do not. Based on three statistical techniques applied in our analysis, namely: discriminant analysis, probit analysis model and logistic regression, we highlighted that stock price is the main driver for CSR activities of a company, while the others – dividend and stock return – don’t have a significant impact. Moreover, the best predicting model is probit analysis model and logistic regression, with an average correct classification of 65.82%.