Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility-Reference-Cited by-同舟云学术

Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility

Published:2021-04-28 Issue:1 Volume:46 Page:82-116
ISSN:1042-2587
Container-title:Entrepreneurship Theory and Practice
language:en
Short-container-title:Entrepreneurship Theory and Practice

Author:

Sekerci Naciye¹²³,Jaballah Jamil⁴,van Essen Marc⁵,Kammerlander Nadine⁶^ORCID

Affiliation:

1. KU Leuven, Antwerp, Belgium

2. Utrecht University School of Economics, Utrecht, Netherlands

3. Knut Wicksell Centre for Financial Studies, Lund University, Lund, Sweden

4. Grenoble Ecole de Management, Grenoble, France

5. University of South Carolina, Columbia, SC, USA

6. WHU – Otto Beisheim School of Management, Vallendar, Germany

Abstract

We study family firm status as an important condition in signaling theory; specifically, we propose that the market reacts more positively to positive, and more negatively to negative, CSR news (i.e., signals) from family firms than to similar news from nonfamily firms. Moreover, we propose that during recessions, the direction of these relationships reverses. Based on an event study of 1247 positive and negative changes in the CSR ratings for all firms listed on the French SFB120 stock market index (2003-2013), we find support for our hypotheses. Moreover, a post hoc analysis reveals that the relationships are contingent on whether a family CEO leads the firm.

Publisher

SAGE Publications

Subject

Economics and Econometrics,Business and International Management

Link

http://journals.sagepub.com/doi/pdf/10.1177/10422587211010498

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