A study on corporate social responsibility and portfolio performance, at the Nairobi Stock Exchange.
View/ Open
Date
2006-08Author
Obusubiri, Moses M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This research paper examined the relationship between Corporate Social
Responsibility(CSR) and portfolio performance and determined the extent of CSR
among listed companies on the Nairobi Stock Exchange (NSE). The period of the
research was 2001 - 2005. The research was carried out using a questionnaire
to determine the extent of CSR. A questionnaire was sent to all the 46 listed
companies on NSE and only 31 responded to the questionnaire. The results
showed that majority of the companies listed on NSE thus about 55% of this
companies had a score above averaqe on corporate social responsibllrtv.
Also using information from the questionnaire and pub!icly available data from
the annual reports. Portfolios were constructed based on CSR score frcrn the
questionnaire. Correlation analysis was done to determine whether there is any
relationshic between CSR and portfolio performance. The results indicated that
there was a relationship between CSR portfolio and that those
portfolio ranked high on basis cf CSR perforrned better than low ranked
portfolios. High ranked portfolios had a Sharpe ratio of 0.854 and low ranked
portfolios had a Sharpe ration of 0.671. All the portfolios pertorrned better than
the market proxy
Citation
Masters thesis University of Nairobi (2006)Publisher
University of Nairobi. Faculty of Commerce
Description
Degree of Master of Business Administration