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Abstract

The objective of this research is to examine the share values of publicly traded U.S. agribusiness firms to determine if they are influenced by the adoption of Corporate Social Responsibility (CSR) practices. Adoption of sustainability initiatives that are in line with the requirements of CSR were made based upon a firm’s inclusion on a Dow Jones Sustainability Index (DJSI). To accomplish this task, we utilize an event study methodology. Typically, we find that the share values of agribusinesses react negatively, at least in the short-term, when the announcement is made that the firm will become a member of the DJSI.

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