The Impact of Corporate Social Responsibility on Investment Recommendations.

The article examines how social performance affects sell-side securities analysts' recommendations in the U.S. Studies are cited which explore the hypothesized link of corporate social responsibility (CSR) to corporate financial performance (CFP). Security analysts' role as information intermediaries in public equity markets and their ability to affect the price and trading volume of a firm's stock are analyzed. The issue of how external institutions that monitor and channel the flow of information towards the capital markets assess and perceive socially responsible firm behaviors is also discussed.