Aim: The purpose of this study is to investigate how different types of CSR activity signaling affect company valuation on the stock market within the Swedish industrial sector. By combining insights from CSR and signaling theory literature, we attempt to fill a research gap in this area and increase understanding of the relationship between CSR initiatives and company valuation.

Method: This study is quantitative in nature with a deductive approach and a positivist research strategy. The selection consists of 47 large and medium-sized Swedish companies listed on Nasdaq Stockholm. Two types of data have been collected, partly on an annual basis (94 observations) and partly on a quarterly basis (376 observations), taken from financial reports for the years 2020-2021.

Results and Conclusions: The results of this study suggest that on an annual basis there is no statistically significant relationship between CSR activities and stock prices. Conversely, the quarterly analysis shows a positive relationship between stock prices and employee health initiatives. This relationship means that such CSR activities can act as signals for the company to potentially influence market perceptions and thereby positively affect share prices.

Contribution of the thesis: theoretically this study contributed to explore how different types of CSR activities affect company valuation on the stock market within the Swedish industrial sector. It also seeks to contribute to signaling theory by analyzing how CSR activities act as signals and shape investors' perceptions and decisions. Practically, the study can help companies formulate effective CSR strategies by identifying specific CSR activities that can affect company valuation.

Suggestions for future research: In the future, it would be excellent to also investigate the effect of additional CSR activities such as environmentally friendly water, energy or resource use on share prices through signaling. In addition, comparative research within different sectors in Sweden would also be interesting to carry out to see how different CSR initiatives affect share prices among companies in different industries.