Investors’ Reactions to CSR News in Family Versus Nonfamily Firms : A Study on Signal (In)credibility
(2022) In Entrepreneurship Theory and Practice 46(1). p.82-116- 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/710d5b48-e8e1-4755-94c0-7a998d8e8854
- author
- Sekerci, Naciye LU ; Jaballah, Jamil ; van Essen, Marc and Kammerlander, Nadine
- organization
- publishing date
- 2022
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- corporate social responsibility, family CEO, family firms, market reaction, recession, signaling theory
- in
- Entrepreneurship Theory and Practice
- volume
- 46
- issue
- 1
- pages
- 82 - 116
- publisher
- Wiley-Blackwell
- external identifiers
-
- scopus:85105484447
- ISSN
- 1042-2587
- DOI
- 10.1177/10422587211010498
- language
- English
- LU publication?
- yes
- id
- 710d5b48-e8e1-4755-94c0-7a998d8e8854
- date added to LUP
- 2021-06-08 10:33:40
- date last changed
- 2022-04-19 06:32:22
@article{710d5b48-e8e1-4755-94c0-7a998d8e8854, abstract = {{<p>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.</p>}}, author = {{Sekerci, Naciye and Jaballah, Jamil and van Essen, Marc and Kammerlander, Nadine}}, issn = {{1042-2587}}, keywords = {{corporate social responsibility; family CEO; family firms; market reaction; recession; signaling theory}}, language = {{eng}}, number = {{1}}, pages = {{82--116}}, publisher = {{Wiley-Blackwell}}, series = {{Entrepreneurship Theory and Practice}}, title = {{Investors’ Reactions to CSR News in Family Versus Nonfamily Firms : A Study on Signal (In)credibility}}, url = {{http://dx.doi.org/10.1177/10422587211010498}}, doi = {{10.1177/10422587211010498}}, volume = {{46}}, year = {{2022}}, }