Relationship of market capitalization of the IBEX 35 to corporate social responsibility and transparency

Abstract

This paper seeks to determine whether the economic‐financial performance and value of the companies composing the IBEX 35 are related to the transparency with which these companies publish their economic and social data. Our goal is ultimately to establish the degree (if any) to which Spain's largest listed companies' commitments to transparency and CSR are related to their market capitalization volumes. We also evaluate the effectiveness—relative to the economic data and to each other—of the transparency and Corporate Social Responsibility (CSR) rankings prepared by Transparency International Spain and the Corporate Social Responsibility Observatory. The results indicate a high correlation of market capitalization to the transparency and CSR indexes, and a positive evaluation of using these tools for future lines of research in Spain.