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Corporate Social Responsibility and the Market Pricing of Corporate Earnings ABSTRACT: Does a firm’s corporate social responsibility (CSR) performance relate to the market pricing of its earnings? While prior CSR research has studied benefits of CSR activities from a managerial reporting and analyst perspectives, we are the first to focus on an investor behavior perspective. We find in a short window around earnings announcements higher abnormal stock returns sensitivity to earnings surprises and higher abnormal trading volumes for firms with higher CSR activities. We also find that the well-known post-earnings announcement drift decreases in CSR performance. These findings are distinct from the previously documented corporate governance effect, robust to various measures of earnings surprises, abnormal returns, and CSR performance, and hold for a battery of validity checks that considers a possible endogeneity problem, and a variety of alternative explanations. Keywords: corporate social responsibility; market response to earnings announcements; post-earnings announcement drift; trading volume JEL Classification: M14, M41, G14