Footnote:
In: John Bae, Wonik Choi and Jongha Lim, European Financial Management, DOI/10.1111/eufm.12235, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2, 2019 erstellt
Description:
We examine the way a fraudulent firm's pre‐ and postmisconduct corporate social responsibility engagement is associated with its stock performance to investigate the reputational role of corporate social responsibility (CSR). In the short term, firms with good CSR performance suffer smaller market penalties upon the revelation of financial wrongdoing, supporting the buffer effect, as opposed to the backfire effect, of a good social image. We also find that the misbehaving firms' post‐misconduct CSR efforts are negatively associated with delisting probabilities, and positively with stock returns. These findings support the argument that increasing post‐crisis CSR engagement can be an effective remedy for a damaged reputation