時間: 5/1 (五) 10:30-12:00
講題: Does Engagement in Corporate Social Responsibility Reduce the Contagion Effect of Negative Events?
We examine whether engagement in corporate social responsibility (CSR) has positive risk management effects in the form of a reduction in the contagion effect arising from announcements of negative events by other firms within the same industry. Using an event study methodology and data from the Compustat and KLD datasets covering the years 2000 to 2008, we find that firms’ short- and long-term CSR engagement reduces the probability of them being adversely affected by a negative event in another firm. Firms engaging in philanthropic activity are also found to be influenced to a lesser degree when the contagion effect is triggered by negative events occurring in other firms. Our findings reveal that both the probability and extent of the contagion effect are greater for financial firms, followed by final goods and non-final goods firms, and lend support to the notion that a firm’s engagement in CSR leads to the accumulation of moral capital, thereby providing insurance-like effects.