Corporate Social Irresponsibility Under the Media Spotlight and Firm Market Value

  1. Garrido Martinez, Elisabet 1
  2. Gomez, Jaime 2
  3. Maicas-Lopez, Juan Pablo 1
  4. Orcos, Raquel 2
  1. 1 Universidad de Zaragoza
    info

    Universidad de Zaragoza

    Zaragoza, España

    ROR https://ror.org/012a91z28

  2. 2 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Revista:
Academy of Management Proceedings

ISSN: 0065-0668,  2151-6561

Año de publicación: 2023

Volumen: 2023

Número: 1

Tipo: Artículo

DOI: 10.5465/AMPROC.2023.15798ABSTRACT GOOGLE SCHOLAR

Otras publicaciones en: Academy of Management Proceedings

Resumen

This research aims to expand our understanding of how media coverage of corporate social irresponsibility (CSI) negatively affects a firm's market value. Drawing on attribution theory, we contend that three features of CSI controversies reported by the media – i.e. the type of stakeholder involved, the scope of controversies, and the persistence of controversies - determine what stakeholders consider to be the drivers under firms’ misconduct, shaping their reaction and, therefore, the negative impact of CSI on firm market value. The results, based on an international sample of 535 firms and 2,502 observations along the period 2002-2020, show that the scope and persistence of CSI controversies are detrimental for firm market value.