Investor reaction to positive and negative corporate social events

Journal of Business Research

Volumn 66, Issue 10, 2013, Pages 1852-1860

  Groening, Christopher ^a   Kanuri, Vamsi Krishna ^a  

^a UNIVERSITY OF MISSOURI   (United States)

Author keywords

Abnormal returns; Congruence; Corporate social responsibility; Event study; Incongruence; Stakeholder theory

Indexed keywords

EID: 84878657580     PISSN: 01482963     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbusres.2013.02.006     Document Type: Article

References (76)

1. Adams R.B., Ferreira D. Women in the boardroom and their impact on governance and performance. Journal of Financial Economics 2009, 94(2):291-309.
2. Agle B.R., Mitchell R.K., Sonnenfeld J.A. Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. Academy of Management Journal 1999, 42(5):507-525.
3. Anderson E.W., Mittal V. Strengthening the satisfaction-profit chain. Journal of Service Research 2000, 3(2):107-121.
4. Anderson J.C., Narus J.A. Business marketing: Understand what customers value. Harvard Business Review 1998, 76(6):53-65.
5. Barnett M.L. Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review 2007, 32(3):794-816.
6. Basil D., Runte M., Basil M., Usher J. Company support for employee volunteerism: Does size matter?. Journal of Business Research 2011, 64(1):61-66.
7. Boehm A. Corporate social responsibility: A complementary perspective of community and corporate leaders. Business and Society Review 2002, 107(2):171-194.
8. Bolton R.N., Lemon K.N., Verhoef P.C. Expanding business-to-business customer relationships: Modeling the customer's upgrade decision. Journal of Marketing 2008, 72(1):46-64.
9. Boulding W., Staelin R. Identifying generalizable effects of strategic actions on firm performance: The case of demand-side returns to R&D spending. Marketing Science 1995, 14(3):G222-G236.
10. Brown T.J., Dacin P.A. The company and the product: Corporate associations and consumer product responses. Journal of Marketing 1997, 61(1):68-84.
11. Campbell J.L. Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Journal 2007, 32(3):946-967.
12. Chitturi R., Raghunathan R., Mahajan V. Delight by design: The role of hedonic versus utilitarian benefits. Journal of Marketing 2008, 72(3):48-63.
13. Clarkson M.B.E. A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review 1995, 20(1):92-117.
14. Clinebell S.K., Clinebell J.M. The effect of advance notice of plant closings on firm value. Journal of Management 1994, 20(3):553-564.
15. Conrad J., Cornell B., Landsman W.R. When is bad news really bad news?. Journal of Finance 2002, 57(6):2507-2532.
16. Das S., Sen P.K., Sengupta S. Impact of strategic alliances on firm valuation. Academy of Management Journal 1998, 41(1):27-41.
17. Davidson W.N.I., Worrell D.L. The impact of announcements of corporate illegalities on shareholder returns. Academy of Management Journal 1988, 31(1):195-200.
18. Davidson W.N.I., Worrell D., Cheng L.T.W. The effectiveness of OSHA penalties: A stock-market-based test. Industrial Relations 1994, 33(3):283-296.
19. Doh J.P., Howton S.D., Howton S.W., Siegel D.S. Does the market respond to an endorsement of social responsibility? The role of institutions, information, and legitimacy. Journal of Management 2010, 36(6):1461-1485.
20. Donaldson T., Preston L.E. The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review 1995, 20(1):65-91.
21. Dooley R.S., Lerner L.D. Pollution, profits, and stakeholders: The constraining effect of economic performance on CEO concern with stakeholder expectations. Journal of Business Ethics 1994, 13(9):701-711.
22. Drumwright M.E. Socially responsible organizational buying: Environmental concern as a noneconomic buying criterion. Journal of Marketing 1994, 58(3):1-19.
23. Fama E.F. Market efficiency, long-term returns, and behavioral finance. Journal of Financial Economics 1998, 49(3):283-306.
24. Fama E.F., Fisher L., Jensen M.C., Roll R. The adjustment of stock prices to new information. International Economic Review 1969, 10(1):1-21.
25. Freeman R.E. Strategic management 1984, Pitman Publishing Inc., Marshfield, MA.
26. Friedman, M. (1970, September 13). A Friedman doctrine- The social responsibility of business is to increase its profits, New York Times, pp. SM17-SM20.
27. Frooman J. Socially irresponsible and illegal behavior and shareholder wealth: A meta-analysis of event studies. Business & Society 1997, 36(3):221-249.
28. Fulmer I.S., Gerhart B., Scott K.S. Are the 100 best better? An empirical investigation of the relationship between being a "great place to work" and firm performance. Personnel Psychology 2003, 56(4):965-993.
29. Godfrey P.C., Merrill C.B., Hansen J.M. The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal 2009, 30(4):425-445.
30. Grewal R., Chandrashekaran M., Citrin A.V. Customer satisfaction heterogeneity and shareholder value. Journal of Marketing Research 2010, 47(4):612-626.
31. Harrison J.S., Bosse D.A., Phillips R.A. Managing for stakeholders, stakeholder utility functions, and competitive advantage. Strategic Management Journal 2010, 31(1):58-74.
32. Heckman J.J. Sample selection bias as a specification error. Econometrica 1979, 47(1):153-161.
33. Henriques I., Sadorsky P. The relationship between environmental commitment and managerial perceptions of stakeholder importance. Academy of Management Journal 1999, 42(1):87-99.
34. Hillman A.J., Keim G.D. Shareholder value, stakeholder management, and social issues: What's the bottom line?. Strategic Management Journal 2001, 22(2):125-139.
35. Hosmer L.T., Kiewitz C. Organizational justice: A behavioral science concept with critical implications for business ethics and stakeholder theory. Business Ethics Quarterly 2005, 15(1):67-91.
36. Jacobs B.W., Singhal V.R., Subramanian R. An empirical investigation of environmental performance and the market value of the firm. Journal of Operations Management 2010, 28(5):430-441.
37. Jones T.M. Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review 1995, 20(2):404-437.
38. King B.G., Soule S.A. Social movements as extra-institutional entrepreneurs: The effect of protests on stock price returns. Administrative Science Quarterly 2007, 52(3):413-442.
39. Klassen R.D., McLaughlin C.P. The impact of environmental management on firm performance. Management Science 1996, 42(8):1199-1214.
40. Lepoutre J., Heene A. Investigating the impact of firm size on small business social responsibility: A critical review. Journal of Business Ethics 2006, 67(3):257-273.
41. Lev B., Petrovits C., Radhakrishnan S. Is doing good good for you? How corporate charitable contributions enhance revenue growth. Strategic Management Journal 2010, 31(2):182-200.
42. Mackey A., Mackey T.B., Barney J.B. Corporate social responsibility and firm performance: Investor preferences and corporate strategies. Academy of Management Review 2007, 32(3):817-835.
43. Margolis J.D., Walsh J.P. Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly 2003, 48(2):268-305.
44. Mathur L.K., Mathur I. An analysis of the wealth effects of green marketing strategies. Journal of Business Research 2000, 50(2):193-200.
45. McWilliams A., Siegel D. Event studies in management research: Theoretical and empirical issues. Academy of Management Journal 1997, 40(3):626-657.
46. McWilliams A., Siegel D. Corporate social responsibility: A theory of the firm perspective. Academy of Management Review 2001, 26(1):117-127.
47. McWilliams A., Siegel D.S. Creating and capturing value: Strategic corporate social responsibility, resource-based theory, and sustainable competitive advantage. Journal of Management 2011, 37(5):1480-1495.
48. Miller D., Lee J. The people make the process: Commitment to employees, decision making, and performance. Journal of Management 2001, 27(2):163-189.
49. Mintzberg H. Power in and around organizations 1983, Prentice-Hall, Englewood Cliffs, N.J.
50. Mitchell R.K., Agle B.R., Wood D.J. Towards a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review 1997, 22(4):853-886.
51. Mizik N., Jacobson R. Trading off between value creation and value appropriation: The financial implications of shifts in strategic emphasis. Journal of Marketing 2003, 67(1):63-76.
52. Muller A., Kräussl R. Doing good deeds in times of need: A strategic perspective on corporate disaster donations. Strategic Management Journal 2011, 32:911-929.
53. Murray K.B., Vogel C.M. Using a hierarchy-of-effects approach to gauge the effectiveness of corporate social responsibility to generate goodwill toward the firm: Financial versus nonfinancial impacts. Journal of Business Research 1997, 38(2):141-159.
54. Nelling E., Webb E. Corporate social responsibility and financial performance: The "virtuous circle" revisited. Review of Quantitative Finance and Accounting 2009, 32(2):197-209.
55. Orlitzky M. Does firm size confound the relationship between corporate social performance and firm financial performance?. Journal of Business Ethics 2001, 33(2):167-180.
56. Orlitzky M., Schmidt F.L., Rynes S.L. Corporate social and financial performance: A meta-analysis. Organizational Studies 2003, 24(3):403-441.
57. Palmatier R.W., Gopalakrishna S., Houston M.B. Returns on business-to-business relationship marketing investments: Strategies for leveraging profits. Marketing Science 2006, 25(5):477-493.
58. Palmon O., Sun H.-L., Tang A.P. Layoff announcements: Stock market impact and financial performance. Financial Management 1997, 26(3):54-68.
59. Porter M.E., Kramer M.R. The competitive advantage of corporate philanthropy. Harvard Business Review 2002, 80(12):56-69.
60. Posnikoff J.F. Divestment from South Africa: They did well by doing good. Contemporary Economic Policy 1997, 15(1):76-86.
61. Post J.E., Preston L.E., Sachs S. Managing the extended enterprise: The new stakeholder view. California Management Review 2002, 45(1):6-28.
62. Preston L.E., Donaldson T. Stakeholder management and organizational wealth. Academy of Management Review 1999, 24(4):619-620.
63. Pride W.M., Ferell O.C. Marketing: Concepts and strategies 1995, Houghton Mifflin, Boston. 9th ed.
64. Prior D., Surroca J., Tribó J.A. Are socially responsible managers really ethical? Exploring the relationship between earnings management and corporate social responsibility. Corporate Governance: An International Review 2008, 16(3):160-177.
65. Schnietz K.E., Epstein M.J. Exploring the financial value of a reputation for corporate social responsibility during a crisis. Corporate Reputation Review 2005, 7(4):327-345.
66. Sen S., Bhattacharya C.B. Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research 2001, 38(2):225-243.
67. Sharfman M. The construct validity of the Kinder, Lydenburg & Domini social performance ratings data. Journal of Business Ethics 1996, 15(3):287-296.
68. Srinivasan R., Bharadwaj S.G. Event studies in marketing strategy research. Assessing marketing strategy performance 2004, Marketing Science Institute, Cambridge, MA. C. Moorman, D.R. Lehmann (Eds.).
69. Srinivasan R., Lilien G.L., Sridhar S. Should firms spend more on research and development and advertising during recessions?. Journal of Marketing 2011, 75(3):49-65.
70. Turban D.B., Greening D.W. Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal 1997, 40(3):658-672.
71. Vosgerau J., Anderson E., Ross W.T.J. Can inaccurate perceptions in business-to-business (B2B) relationships be beneficial?. Marketing Science 2008, 27(2):205-224.
72. Waddock S. Building a new institutional infrastructure for corporate responsibility. Academy of Management Perspectives 2008, 22(3):87-108.
73. Weigand R.A. Organizational diversity, profits and returns in U.S. firms. Problems and Perspectives in Management 2007, 5(3):69-83.
74. Worrell D.L., Davidson W.N., Sharma V.M. Layoff announcements and stockholder wealth. Academy of Management Journal 1991, 34(3):662-678.
75. Wright P., Ferris S.P., Hiller J.S., Kroll M. Competitiveness through management of diversity: Effects on stock price valuation. Academy of Management Journal 1995, 38(1):272-287.
76. Zhang R., Zhu J., Yue H., Zhu C. Corporate philanthropic giving, advertising intensity, and industry competition level. Journal of Business Ethics 2010, 94(1):39-52.