Social report and stock price, an empirical analysis

We test whether the publication of a social report influences, directly and indirectly, the stock price. The research model used is based on the classic formulation of value relevance analysis and the sample selected consists of 178 Italian listed companies. The estimates demonstrate a significant negative correlation between the publication of a social report and the stock price. Furthermore, all other factors being equal, accounting information on book value per share and earning per share are more relevant in the stock price formation process in the case of companies that publish a social report.