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Full-Text Articles in Business
Avoiding The Appearance Of Virtue: Reactivity To Corporate Social Responsibility Ratings In An Era Of Shareholder Primacy, Ben W. Lewis, W. Chad Carlos
Avoiding The Appearance Of Virtue: Reactivity To Corporate Social Responsibility Ratings In An Era Of Shareholder Primacy, Ben W. Lewis, W. Chad Carlos
Faculty Publications
We examine why organizations may at times decrease their performance after receiving a positive rating. We argue that in contrast to the prevailing assumption that organizations will strive for favorable ratings to achieve reputational benefits, incompatibility between a positive rating and a dominant institutional logic may cause recognized firms to question the perceived value of maintaining superior performance, thus leading them to strategically reduce their efforts on the rated dimension. Using a difference-in-differences design, we examine how companies responded to being rated as charitable organizations, an evaluation that we argue was generally perceived as incompatible with the dominant logic of …
Investors’ Reactions To Csr News In Family Versus Nonfamily Firms: A Study On Signal (In)Credibility, Naciye Sekerci, Jamil Jaballah, Marc Van Essen, Nadine Kammerlander
Investors’ Reactions To Csr News In Family Versus Nonfamily Firms: A Study On Signal (In)Credibility, Naciye Sekerci, Jamil Jaballah, Marc Van Essen, Nadine Kammerlander
Faculty Publications
We study family firm status as an important condition in signaling theory; specifically, we propose that the market reacts more positively to positive, and more negatively to negative, CSR news (i.e., signals) from family firms than to similar news from nonfamily firms. Moreover, we propose that during recessions, the direction of these relationships reverses. Based on an event study of 1247 positive and negative changes in the CSR ratings for all firms listed on the French SFB120 stock market index (2003-2013), we find support for our hypotheses. Moreover, a post hoc analysis reveals that the relationships are contingent on whether …
Sales Order Backlog And Corporate Social Responsibility, Li Sun, Brian Walkup, Kean Wu
Sales Order Backlog And Corporate Social Responsibility, Li Sun, Brian Walkup, Kean Wu
Faculty Publications
We examine the impact of sales order backlog, an important leading indicator of firm performance, on corporate social responsibility (CSR) performance (measured as responsible and irresponsible CSR performance). We rely on the stakeholder view and the resource availability view of CSR to develop our hypotheses. Under the stakeholder view, we posit a positive relation between sales order backlog and CSR performance. Under the resource availability view, we posit this relationship to be negative. Our empirical evidence shows a significant positive relation between order backlog and irresponsible CSR performance, suggesting that firms with higher order backlog demonstrate lower overall CSR performance. …
The Risk Of Being Ranked: Investor Response To Marginal Inclusion On The 100 Best Corporate Citizens List, Ben William Lewis, W. Chad Carlos
The Risk Of Being Ranked: Investor Response To Marginal Inclusion On The 100 Best Corporate Citizens List, Ben William Lewis, W. Chad Carlos
Faculty Publications
Despite the proliferation of lists and rankings that recognize firms for superior performance, empirical studies have been limited in their ability to causally evaluate how inclusion for the marginal firm influences shareholder value. Using a regression discontinuity design, we address this limitation by examining how investors responded to firms that were just barely included or excluded from the 100 Best Corporate Citizens list. Contrary to prevailing theoretical expectations, our findings indicate that marginal firms that were included in the ranking experienced negative abnormal returns compared to marginal firms that were excluded. We discuss how these findings inspire future research on …
Social Burden, Social Venture Or Social Responsibility? A Reflection On Csr In China And Csr Strategy Suggestions For Multinational Companies In China, Mantian Wang, Rongming Ren, Guiyi Hu, Hongyong Lu, Ilan Alon
Social Burden, Social Venture Or Social Responsibility? A Reflection On Csr In China And Csr Strategy Suggestions For Multinational Companies In China, Mantian Wang, Rongming Ren, Guiyi Hu, Hongyong Lu, Ilan Alon
Faculty Publications
Thirty years into its reform and opening, the People’s Republic of China (referred to as China) has become aware of many international practices, including corporate social responsibility (CSR). Yet FOR Chinese enterprises, CSR seems similar to the heavy social burdens of THE state-owned enterprises (SOEs). The “cradle-to-grave” welfare system, notorious but standard in THE planned economy, played a role in the failure of most SOEs to compete with the new, burgeoning private sector. Although laws were promulgated to free the SOEs from their “social burdens,” the new township enterprises set a different example. Some of the latter even profited from …
Corporate Social Responsibility In Emerging Markets - The Importance Of The Governance Environment, Marc Fetscherin, Shaomin Li, Ilan Alon, Christoph Lattemann, Kuang Yeh
Corporate Social Responsibility In Emerging Markets - The Importance Of The Governance Environment, Marc Fetscherin, Shaomin Li, Ilan Alon, Christoph Lattemann, Kuang Yeh
Faculty Publications
• This study examines how country-level, industry-level, and firm-level factors affect the extent of corporate communication about CSR in Brazil, Russia, India, and China (BRIC). In particular, using the data of 105 largest MNCs from BRIC, we investigate the CSR motives, processes, and stakeholder issues discussed in corporate communications.
• On the country level, we use a newly developed framework of the governance environment which differentiates between rule-based and relation-based governance. Our study reveals that the governance environment of a country is the most important driving force for the communication intensity about CSR.
• Our results show that firms communicating …