Corporate Social Responsibility and Shareholder Reaction: The Environmental Awareness of Investors

@article{Flammer2013CorporateSR,
  title={Corporate Social Responsibility and Shareholder Reaction: The Environmental Awareness of Investors},
  author={Caroline Flammer},
  journal={Academy of Management Journal},
  year={2013},
  volume={56},
  pages={758-781}
}
This study examines whether shareholders are sensitive to corporations' environmental footprint. Specifically, I conduct an event study around the announcement of corporate news related to environment for all US publicly traded companies from 1980 to 2009. In keeping with the view that environmental corporate social responsibility (CSR) generates new and competitive resources for firms, I find that companies reported to behave responsibly toward the environment experience a significant stock… 

Figures and Tables from this paper

Socially Responsible Firms

In the corporate finance tradition starting with Berle & Means (1923), corporations should generally be run so as to maximize shareholder value. The agency view of corporate social responsibility

Variations in the Corporate Social Responsibility-Performance Relationship in Emerging Market Firms

Corporate social responsibility (CSR) and its impact on performance have generated a debate that has evolved across several perspectives (shareholder, stakeholder, resource-based, and contingency).

Corporate Purpose and Value: Evidence from a Novel Measure of Environmental Awareness

We develop a novel metric of environmental corporate social responsibility (CSR) rivalry capturing the sustainability engagements of a firm relative to its “green” and “toxic” peers. We document that

How Much Does Negative Public Exposure on Environmental Issues Increase Environmental Performance

Previous research suggests that companies tend to react against negative media coverage or activists’ attacks by self-regulating in the form of increased investments in Corporate Social

Corporate environmentalism and brand value: A natural resource-based perspective

ABSTRACT Given ever-increasing engagement of firms in corporate environmentalism over the past few decades, a multitude of studies investigated the antecedents and consequences of corporate

Investor rewards to environmental responsibility: Evidence from the COVID-19 crisis

Corporate Governance and the Rise of Integrating Corporate Social Responsibility Criteria in Executive Compensation: Effectiveness and Implications for Firm Outcomes

This study examines the antecedents and consequences of integrating corporate social responsibility (CSR) criteria in executive compensation, a relatively recent practice in corporate governance.

Corporate Social Responsibility and Imperfect Regulatory Oversight: Theory and Evidence from Greenhouse Gas Emissions Disclosures

This paper develops and tests a model in which 1) purpose-driven firms emerge as an optimal organizational form even for profit-maximizing entrepreneurs; and 2) CSR arises endogenously as a response

Does Product Market Competition Foster Corporate Social Responsibility

This study examines whether product market competition affects corporate social responsibility (CSR). To obtain exogenous variation in product market competition, I exploit a quasi-natural experiment

The effects of time on managers and investors in corporate social responsibility

An emerging body of literature has started to examine the cognitive drivers and financial outcomes of corporate social responsibility (CSR). This Ph.D. research aims to shed light on the overall
...

References

SHOWING 1-10 OF 68 REFERENCES

Corporate Social and Financial Performance: A Meta-Analysis

Most theorizing on the relationship between corporate social/environmental performance (CSP) and corporate financial performance (CFP) assumes that the current evidence is too fractured or too

Misery Loves Companies: Rethinking Social Initiatives by Business

Companies are increasingly asked to provide innovative solutions to deep-seated problems of human misery, even as economic theory instructs managers to focus on maximizing their shareholders' wealth.

Using Corporate Social Responsibility as Insurance for Financial Performance

This article provides a framework for simultaneously assessing the affirmative and defensive functions of Corporate Social Responsibility. It is based on integrating two traditionally distinct

The impact of environmental management on firm performance

Environmental management has the potential to play a pivotal role in the financial performance of the firm. Many individuals suggest that profitability is hurt by the higher production costs of

A Positive Theory of Moral Management, Social Pressure, and Corporate Social Performance

This paper provides a theory of firm behavior motivated by moral duty, self-interest, and social pressure. A morally-managed and a self-interested firm compete in a market in which their corporate

The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?

Some twenty years ago, Harvard Business School economist and strategy professor Michael Porter challenged conventional wisdom about the impact of environmental regulation on business by declaring

Does It Pay to Be Green? A Systematic Overview

Executive Overview The conventional wisdom concerning environmental protection is that it comes at an additional cost imposed on firms, which may erode their global competitiveness. However, during

Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk

It is argued that no simple correlation can be established between corporate social performance and corporate financial performance. The activities that generate CSP do not directly impact the

A Resource-Based Perspective On Corporate Environmental Performance And Profitability

Drawing on the resource-based view of the firm, we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the

Evolving sustainably: a longitudinal study of corporate sustainable development

This study operationalizes corporate sustainable development and examines its organizational determinants. Data for this project pertain to Canadian firms in the oil and gas, mining, and forestry
...