Does doing good lead to doing better in emerging markets? Stock market responses to the SRI index announcements in Brazil, China, and South Africa

Springer Science and Business Media LLC - Tập 48 - Trang 966-986 - 2019
Peng Zou1, Qi Wang2,3, Jinhong Xie4, Chenxi Zhou5
1Department of Marketing, School of Management, Harbin Institute of Technology, Harbin, China
2State University of New York at Binghamton, Binghamton, USA
3China Europe International Business School, Shanghai, China
4Warrington College of Business Administration, University of Florida, Gainesville, USA
5School of Management, Xiamen University, Fu Jian, People’s Republic of China

Tóm tắt

This paper investigates whether and how emerging markets reward firms’ corporate social responsibility (CSR) performance. We focus on the socially responsible investment (SRI) index, which lists the top CSR performers and serves as a tool to help investors make investment decisions based on financial and social criteria. We empirically test the financial market responses to the announcements of pioneering SRI indices recently launched in Brazil, China, and South Africa. We find that inclusion on an SRI index in these markets is associated with positive abnormal returns. However, inclusion on an SRI index does not benefit all firms equally: the positive financial response is strengthened by R&D expenditures but weakened by advertising expenditures; it is stronger for firms that have expanded globally to developing countries than those to developed countries.

Tài liệu tham khảo

Arya, B., & Zhang, G. (2009). Institutional reforms and investor reactions to CSR announcements: Evidence from an emerging economy. Journal of Management Studies, 46(7), 1089–1112. Bhattacharya, C. B., & Sen, S. (2004). Doing better at doing good: When, why, and how consumers respond to corporate social initiatives. California Management Review, 47, 9–24. Boston Consulting Group (BCG) (2009). The 2009 BCG 100 new global challengers: How companies from rapidly developing economies are contending global leadership. Burgess, S. M., & Steenkamp, J. E. M. (2006). Marketing renaissance: How research in emerging markets advances marketing science and practice. International Journal of Research in Marketing, 23(4), 337–356. Chen, Y., Liu, Y., & Zhang, J. (2012). When do third-party product reviews affect firm value and what can firms do? The case of media critics and professional movie reviews. Journal of Marketing, 76(2), 116–134. Chen, Y. C., Hung, M., & Wang, Y. (2017). The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China. Journal of Accounting and Economics, 65(1), 169–190. Clacher, I., & Hagendorff, J. (2012). Do announcements about corporate social responsibility create or destroy shareholder wealth? Evidence from the UK. Journal of Business Ethics, 106, 253–266. Collins, C. J., & Han, J. (2004). Exploring applicant pool quantity and quality: The effects of early recruitment practice strategies, corporate advertising, and firm reputation. Personnel Psychology, 57, 685–717. Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67. CSM (Centre for Social Markets) (2001). Corporate social responsibility: Perceptions of Indian business, a report by CSM, Calcutta, India. [http://csmworld.org/wp-content/uploads/2009/03/social_respons.pdf]. Curran, M. M., & Moran, D. (2007). Impact of the FTSE4Good index on firm price: An event study. Journal of Environmental Management, 82(3), 529–537. Ding, Y., Stolowy, H., & Tenenhaus, M. (2007). R&D productivity: An exploratory international study. Review of Accounting and Finance, 6(1), 86–101. Economist (2008 Sept. 18). The new champion, http://www.economist.com/node/12080711. Ghoul, S. E., Guedhami, O., Kwok, C. C. Y., & Mishra, D. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance, 35(9), 2388–2406. Graves, S. B., & Waddock, S. A. (1994). Institutional owners and corporate social performance. The Academy of Management Journal, 37(4), 1034–1046. Gulati, R., & Higgins, M. (2003). Which ties matter when? The contingent effects of interorganizational partnership on IPO success. Strategic Management Journal, 24, 127–144. Guo, H., & Fung, H. (2011). The growth enterprise board IPOs: Characteristics, volatility and the initial-day performance. China & World Economy, 19, 106–121. Heider, F. (1958). The psychology of interpersonal relations. New York: Wiley. Higgins, M., & Gulati, R. (2006). Stacking the deck: Effects of top management background on investor decisions. Strategic Management Journal, 27, 1–25. Huang, F., & Li, C. (2012). Comparisons of PE and PB between SDB and Vanke A. International Journal of Business and Management, 5(5), 124–129. Hull, C. E., & Rothenberg, S. (2008). Firm performance: The interactions of corporate social performance with innovation and industry differentiation. Strategic Management Journal, 29(7), 781–789. Ince, O. S., & Porter, R. B. (2006). Individual equity return data from Thomson Datastream: Handle with care! The Journal of Financial Research, 29, 463–479. Johnson, R. A., & Greening, D. W. (1999). The effects of corporate governance and institutional ownership types on corporate social performance. The Academy of Management Journal, 42(5), 564–576. Jones, E. E., Kannouse, D. E., Kelley, H. H., Nisbett, R. E., Valins, S., & Weiner, B. (Eds.). (1972). Attribution: Perceiving the Causes of Behavior. Morristown: General Learning Press. Kalaignanam, K., Shankar, V., & Varadarajan, R. (2007). Asymmetric new product development alliances: Win-win or win-lose partnerships. Management Science, 53(3), 357–374. Kelley, H. H. (1967). “Attribution Theory in Social Psychology,” in D. Levine (Ed.), Nebraska symposium on motivation. Lincoln: University of Nebraska Press. Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114(2), 207–223. Kirmani, A., & Rao, A. R. (2000). No pain, no gain: A critical review of the literature on signaling unobservable product quality. Journal of Marketing, 64(2), 66–79. Koh, P., & Reeb, D. M. (2015). Missing R&D. Journal of Accounting and Economics, 60(1), 73–94. Koh, P. S., Qian, G., & Wang, H. (2014). Firm litigation risk and the insurance value of corporate social performance. Strategic Management Journal, 35, 1464–1482. Kothari, S. P., & Warner, J. B. (2007). Econometrics of event studies. In B. E. Eckbo (Ed.), Handbook of Corporate Finance, North Holland Elsevier (pp. 3–−36). Krishna, C. G. (1992). Corporate social responsibility in India. New Delhi: Mittal Publications. Lemmon, M., & Lins, K. (2003). Ownership structure, corporate governance, and firm value: Evidence from the east Asian financial crisis. Journal of Finance, 58, 1445–1468. Lenz, I., Wetzel, H. A., & Hammerschmidt, M. (2017). Can doing good lead to doing poorly? Firm value implications of CSR in the face of CSI. Journal of the Academy of Marketing Science, 45(5), 677–697. Li, W., & Zhang, R. (2010). Corporate social responsibility, ownership structure, and political interference: Evidence from China. Journal of Business Ethics, 96(4), 631–645. Lourenço, I. C., & Branco, M. C. (2013). Determinants of corporate sustainability performance in emerging markets: The Brazilian case. Journal of Cleaner Production, 57, 134–141. Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70, 1–18. Luo, X., & Bhattacharya, C. B. (2009). The debate over doing good: Corporate social performance, strategic marketing levers, and firm-idiosyncratic risk. Journal of Marketing, 73, 198–213. MacKinlay, C. A. (1997). Event studies in economics and finance. Journal of Economic Literature, 35(1), 13–39. McGuinness, P., Vieito, J. P., & Wang, M. (2017). The role of board gender and foreign ownership in the CSR performance of Chinese listed firms. Journal of Corporate Finance, 42, 75–99. McKinsey Quarterly. (2015). Why emerging-market companies acquire abroad (Vol. 55, pp. 7–9). McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603–609. Menz, K. M. (2010). Corporate social responsibility: Is it rewarded by the corporate bond market? A critical note. Journal of Business Ethics, 96(1), 117–134. Mishra, S., & Modi, S. B. (2016). Corporate social responsibility and shareholder wealth: The role of marketing capability. Journal of Marketing, 80(1), 26–46. Mishra, S., & Suar, D. A. (2010). Does corporate social responsibility influence firm performance of Indian companies? Journal of Business Ethics, 95(4), 571–601. Mizik, N., & Jacobson, R. (2003). Trading off between value creation and value appropriation: The financial implications of shift in strategic emphasis. Journal of Marketing, 67(1), 63–76. Nakai, M., Yamaguchi, K., & Takeuchi, K. (2013). Sustainability membership and stock price: An empirical study using the Morningstar-SRI index. Applied Financial Economics, 23, 71–77. Oberndorfer, U., Schmidt, P., Wagner, M., & Ziegler, A. (2013). Does the stock market value the inclusion in a sustainability stock index? An event study analysis for German firms. Journal of Environmental Economics and Management, 66, 497–509. Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the Academy of Marketing Science, 39(1), 117–135. Porter, M. (1974). Consumer behavior, retailer power and market performance in consumer goods industries. The Review of Economics and Statistics, 56(4), 419–436. Ptok, A., Jindal, R., & Reinartz, W. (2018). Selling, general, and administrative expense (SGA)-based metrics in marketing: Conceptual and measurement challenges. Journal of the Academy of Marketing Science, 46(6), 987–1011. Ramchander, S., Schwebach, R. G., & Staking, K. (2012). The informational relevance of corporate social responsibility: Evidence from DS400 index reconstitutions. Strategic Management Journal, 33, 303–314. Russo, A., & Mariani, M. (2013). Drawbacks of a delisting from a sustainability index: An empirical analysis. International Journal of Business Administration, 4(6), 29–40. Sauer, D. (1997). The impact of social-responsibility screens on investment performance: Evidence from the Domini 400 social index and Domini equity fund. Review of Financial Economics, 6(2), 137–149. Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), 1045–1061. Settle, R. B., & Golden, L. L. (1974). Attribution theory and advertiser credibility. Journal of Marketing Research, 11, 181–185. Sonnenberg, D., & Hamann, R. (2006). The JSE socially responsible investment index and the state of sustainability reporting in South Africa. Development Southern Africa, 23(2), 305–320. Sood, A., & Tellis, G. J. (2009). Do innovations really payoff? Total stock market returns to innovation. Marketing Science, 28(3), 442–456. Sparkes, R. (2001). Ethical investment: Whose ethics, which investment. Business Ethics: A European Review, 10(3), 194–205. Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. Statman, M. (2000). Socially responsible mutual funds. Financial Analysts Journal, 56, 30–39. Su, W., Peng, M., Tan, W., & Cheung, Y. L. (2016). The signaling effect of corporate social responsibility in emerging economies. Journal of Business Ethics, 134, 479–491. Swaminathan, V., & Moorman, C. (2009). Marketing alliances, firm networks, and firm value creation. Journal of Marketing, 72, 52–69. The African Executive (December 13, 2012). Emerging African markets: MNCs must partner with NGOs. Vidaver-Cohen, D., & Altma, B. W. (2000). Corporate citizenship in the new millennium: Foundation for an architecture of excellence. Business and Society Review, 105(1), 145–168. Waddock, S. A., & Graves, S. B. (1997). The corporate social responsibility-financial performance link. Strategic Management Journal, 18(4), 303–319. Wang, K. T., & Li, D. (2016). Market reactions to the first-time disclosure of corporate social responsibility reports: Evidence from China. Journal of Business Ethics, 138, 661–682. Wang, H., Choi, H., & Li, J. T. (2008). Too little or too much? Untangling the relationship between philanthopy and firm financial performance. Organization Science, 19, 143–159. Webb, D., & Mohr, L. (1998). A typology of consumer responses to cause-related marketing: From skeptics to socially concerned. Journal of Public Policy and Marketing, 17(2), 226–239. Williams, M. J. (1986). How to cash in on do-good pitches. Fortune, 113(12), 71–80. Zhang, R., Zhu, J., Yue, H., & Zhu, C. (2010). Corporate philanthropic giving, advertising intensity, and industry competition level. Journal of Business Ethics, 94(1), 39–52. Zhou, C. X., Wang, Q., & Xie, J. H. (2016). Failure to complete cross-border M&as: “To” vs. “from” emerging markets. Journal of International Business Studies, 47(9), 1077–1105. Zhou, K. Z., Gao, G., & Zhao, H. (2017). State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2), 375–404.