DOES ENGAGEMENT IN CORPORATE SOCIAL RESPONSIBILITY PROVIDE STRATEGIC INSURANCE-LIKE EFFECTS?

• 成果类型: Article
• 署名作者: Shiu, Yung-Ming; Yang, Shou-Lin
• 署名单位: National Chengchi University; Da Yeh University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2494
• 发表日期: 2017
• 页码: 455-470
• 关键词: corporate social responsibility; insurance-like effects; risk management; event study; negative events

摘要

Research summary: This study examines whether the stock and bond prices of firms engaging in corporate social responsibility (CSR) can benefit from insurance-like effects during occurrences of negative events. Our results suggest that in the face of negative events, engagement in CSR on a continuous, long-term basis provides insurance-like effects on both the stock and bond prices of firms. Nevertheless, the effects are found to quickly disappear following the occurrence of a second, or subsequent, negative event. Although our results clearly indicate that firms need to allocate some of their available resources to long-term strategic CSR activities, managers must also realize that in a crisis communication, they will probably be able to use their CSR claims on one occasion only. Managerial summary: The purpose of this article is to examine whether firms engaging in corporate social responsibility (CSR) can benefit from insurance-like effects during occurrences of negative events. We find that on the occurrence of a negative event, long-term CSR engagement does have insurance-like effects. We also find that these insurance-like effects may quickly disappear following the occurrence of a second negative event. Managers of firms with a long history of CSR activities need to realize that in a crisis communication, they can probably use their claims of adherence to CSR only once. Copyright (C) 2015 John Wiley & Sons, Ltd.