Who can realize the "spot value" of corporate social responsibility? Evidence from Chinese investors' profiles

Purpose This paper answers, in the Chinese stock market, who can realize the "spot value" of corporate social responsibility (CSR). Design/methodology/approach The authors use event-study to build the research framework. Using CSR report content analysis, the authors measure the specification level of CSR disclosure. Applying the Baidu index, the authors mine Chinese investors' profiles data to investigate retail investor heterogeneity closely. Findings The authors find strong evidence that the measure captures a behavioral bias in CSR pricing: firms that choose to disclose CSR report experience positive abnormal return more among retail investors than institutional investors, more among young investors than older, but no difference between female and male investors. Originality/value Using behavioral finance theory, the authors connect the gap between neoclassical research on the "U-shaped" value realization of CSR and the increasing voluntary CSR disclosure in the Chinese market. The authors find that heuristic reason and emotionality orientation results in the Chinese "CSR-friendly" market.