Paper Title
Market Response to Earnings Announcements and Corporate Sustainability

Abstract
This study compares the performance of market response and operating ratios based on corporate unexpected earnings announcements. Wepropose a win-win hypothesis to test the impact of corporate social responsibility engagement on corporate financial performance between G7 and non-G7 countries. We find that, given negative unexpected earnings announcements, G7 counties firms engaged in corporate social responsibility have relatively better market response than non-engaged firms. Those negative impacts cannot be mitigated by corporate sustainability performance in non-G7 countries. For corporate operating performance, the difference between engaged and non-engaged corporate social responsibility firms have not reached statistical significance in G7 and non-G7 countries. Keywords - Corporate social performance, corporate financial performance,unexpected earnings.