6. EMPIRICAL FINDINGS
5.2 Suggestions for future studies and Limitation
Corporate social responsibility is not only limited to the corporations that directly abuse the environment but there is virtually no business type that has not experienced the demand for societal responsibilities as well as governmental regulations. Therefore, future studies into corporate social responsibility in Finland could be done by looking at different industry, especially at the service sector.
Secondly, the focus of the thesis was narrowed to only UPM Kymmene and Stora Enso. However, there are 4 companies listed on Helsinki Stock Exchange under the Forestry and Paper index out of the nine companies in that sector, so in future, all the four companies can be considered to get the overall picture of the industry reaction.
Again, it was seen that there wasn’t any significant detection of abnormal performance in this study. The result could be due to the increase in the noise. As suggested by Aktas et al. (2009), increasing the sample size will compensate the increase in idiosyncratic volatility. However, this study also suggests a similar trend for future studies since theoretically, the sample size will help reduce the most of the noise.
Moreover, one major limitation of this study was that the news was collected by the researcher from the company’s news releases that are CSR in nature since trying to get direct CSR releases from the companies and by the newspaper editorial prove futile. So, the division of ESG and the good and bad news were done by the researchers own discretion. It could be said that there is a selection bias present in the event sample. Selection bias can lead to a distortion of a statistical analysis, which is as a result of the method of collecting samples. The selection bias should be corrected in the future in order to ensure the validity of the results and the conclusions drawn from
them.
Finally, future research should consider looking at how CSR announcement also affects consumer buying behaviour Finland. This could be done through a qualitative research to understand the variety of thoughts and feelings consumer have about CSR especially since the government seems to be more involved.
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APPENDICES