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Using Corporate Social Responsibilities (CSR) scores compiled by the Boost Awards international company for 77 UK companies listed on the FTSE100, the paper explores the impact of CSR on companies’ cash and investment decisions. The analysis is based on the system-GMM estimation methodology, spanning the period 2006 to 2023. The empirical analysis provides direct evidence that suggests that CSR award is directly and positively associated with corporate cash holdings, with such awards also having a positive effect on corporate investment decisions. The findings survive certain robustness tests in relevance to the distinction between mature and growth firms, although they are stronger in the case of the growth firms, and an alternative definition of CSR. The findings are highly important for company managers, investors and regulatory authorities. Managers in awarded CSR firms with better investment opportunities hold more cash because financial distress is more costly for their firms. In addition, firms with more cash holdings are less likely to default on their financial obligations, hence this evidence also implies that investors may give priority to invest in such high-performance CSR firms. Regulatory authorities should also consider that CSR activities enhance value of firms’ cash holdings and improve stakeholders’ relations.

This study examines the stock performance of large and small European banks included in the STOXX 600 Banks index in response to three major macroeconomic shocks the COVID-19 pandemic, the Russian invasion of Ukraine, and the collapse of Silicon Valley Bank. Employing daily bank stock returns and an event study framework, the analysis measures immediate market reactions through abnormal returns, while subsequent shifts in equity performance are evaluated using volatility, Sharpe ratios, and beta coefficients. The results suggest that large banks tend to exhibit more pronounced short-term losses during shocks compared to smaller banks. In contrast, small banks generally outperform in the medium term following these events, achieving higher risk-adjusted returns despite elevated volatility. Both segments experience increased market correlation and volatility during periods of disruption, indicating heightened systemic risk. Moreover, the type of shock plays a crucial role, with smaller banks often showing greater resilience to localized and geopolitical shocks.