Skip to main content
Fachgebiete
Automobil + Motoren Bauwesen + Immobilien Business IT + Informatik Elektrotechnik + Elektronik Energie + Nachhaltigkeit Finance + Banking Management + Führung Marketing + Vertrieb Maschinenbau + Werkstoffe Versicherung + Risiko
DE
EN
Bücher
Zeitschriften
Themenseiten
Organisationspsychologie Projektmanagement Marketing Smart Manufacturing
Weitere Formate
Podcasts Webinare Technik Webinare Wirtschaft Kongresse Veranstaltungskalender Awards
Jetzt Einzelzugang starten
Zugang für Unternehmen
Referenzkunden
SLX-Digitalkonferenz: Zukunftswerkstatt 2024

Mehr Umsatz mit Top-Kontakten

Am 7. Mai erfahren Sie, wie Vertriebsteams Leadgenerierung, Leadnurturing und Leadstrategien effizient steuern können.
Erweiterte Suche
Anmelden
nach oben
Journal of Business Ethics
Erschienen in: Journal of Business Ethics 1/2021

12.06.2020 | Original Paper

Valuation Effect of Emotionality in Corporate Philanthropy

verfasst von: Anh Dang, Trung Nguyen

Erschienen in: Journal of Business Ethics | Ausgabe 1/2021

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

Despite receiving a great deal of research attention, the effect of corporate philanthropy on shareholder value remains inconclusive. To address this issue, the present paper examines emotionality as an important factor based on which investors infer about the firm’s motive as well as the beneficiary’s worthiness and react accordingly. Consistent with attribution theory, our event study shows that announcements with more emotional expressions are associated with higher cumulative abnormal stock returns and the effect is stronger when investor attention is greater. We further find that the positive interaction effect between emotionality and investor attention is more pronounced for scandal-free firms than for firms with corporate social irresponsibility (CSI). The empirical evidence remains consistent under various robustness tests. The paper concludes with implications for future research and managerial practices.
Vorheriger Artikel Responsible Leadership and Reputation Management During a Crisis: The Cases of Delta and United Airlines
Nächster Artikel Espoused Values of the “Fortune 100 Best Companies to Work For”: Essential Themes and Implementation Practices

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Jetzt informieren
Fußnoten
1
Using equal-weighted return (EWRETD) as an alternative proxy for Rm,t does not change our overall results. These additional analyses are available upon request.
 
2
Previous studies have also used company tickers to extract Google search interest. However, tickers with just a single letter (e.g., the ticker “F” for Ford Motor Company) or those with general meanings (e.g., the ticker “CAT” for Caterpillar Inc.) are likely to introduce noises to one’s empirical analysis, because it is impractical to separate the search interest directly related to these companies. Excluding observations associated with these tickers out of a sample can also lead to sample selection biases or generalizability concerns.
 
Literatur
Adra, S., & Barbopoulos, L. G. (2018). The valuation effects of investor attention in stock-financed acquisitions. Journal of Empirical Finance, 45, 108–125.
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park: Sage.
Alpers, G. W., Winzelberg, A. J., Classen, C., Roberts, H., Dev, P., Koopman, C., et al. (2005). Evaluation of computerized text analysis in an Internet breast cancer support group. Computers in Human Behavior, 21(2), 361–376.
Asquith, P. (1983). Merger bids, uncertainty, and stockholder returns. Journal of Financial Economics, 11(1–4), 51–83.
Bagozzi, R. P., & Moore, D. J. (1994). Public service advertisements: Emotions and empathy guide prosocial behavior. Journal of Marketing, 58(1), 56–70.
Barasch, A., Levine, E. E., Berman, J. Z., & Small, D. A. (2014). Selfish or selfless? On the signal value of emotion in altruistic behavior. Journal of Personality and Social Psychology, 107(3), 393.
Bartov, E., Faurel, L., & Mohanram, P. S. (2017). Can Twitter help predict firm-level earnings and stock returns? The Accounting Review, 93(3), 25–57.
Batson, C. D. (1987). Prosocial motivation: Is it ever truly altruistic? In Advances in experimental social psychology (Vol. 20, pp. 65–122). New York: Academic Press.
Batson, C. D., Duncan, B. D., Ackerman, P., Buckley, T., & Birch, K. (1981). Is empathic emotion a source of altruistic motivation? Journal of Personality and Social Psychology, 40(2), 290.
Becker-Olsen, K. L., Cudmore, B. A., & Hill, R. P. (2006). The impact of perceived corporate social responsibility on consumer behavior. Journal of Business Research, 59(1), 46–53.
Bénabou, R., & Tirole, J. (2010). Individual and corporate social responsibility. Economica, 77(305), 1–19.
Berscheid, E., Graziano, W., Monson, T., & Dermer, M. (1976). Outcome dependency: Attention, attribution, and attraction. Journal of Personality and Social Psychology, 34(5), 978.
Bijl, L., Kringhaug, G., Molnár, P., & Sandvik, E. (2016). Google searches and stock returns. International Review of Financial Analysis, 45, 150–156.
Bilgili, H., Tochman Campbell, J., Ellstrand, A. E., & Johnson, J. L. (2017). Riding off into the sunset: Organizational sensegiving, shareholder sensemaking, and reactions to CEO retirement. Journal of Management Studies, 54(7), 1019–1049.
Borghesi, R., Houston, J. F., & Naranjo, A. (2014). Corporate socially responsible investments: CEO altruism, reputation, and shareholder interests. Journal of Corporate Finance, 26, 164–181.
Boulland, R., Degeorge, F., & Ginglinger, E. (2017). News dissemination and investor attention. Review of Finance, 21(2), 761–791.
Butler, E. A., Egloff, B., Wlhelm, F. H., Smith, N. C., Erickson, E. A., & Gross, J. J. (2003). The social consequences of expressive suppression. Emotion, 3(1), 48.
Cameron, A. C., & Miller, D. L. (2015). A practitioner’s guide to cluster-robust inference. Journal of Human Resources, 50(2), 317–372.
Capelle-Blancard, G., & Petit, A. (2019). Every little helps? ESG news and stock market reaction. Journal of Business Ethics, 157(2), 543–565.
Carhart, M. M. (1997). On persistence in mutual fund performance. The Journal of Finance, 52(1), 57–82.
Cavanaugh, L. A., Bettman, J. R., & Luce, M. F. (2015). Feeling love and doing more for distant others: Specific positive emotions differentially affect prosocial consumption. Journal of Marketing Research, 52(5), 657–673.
Chen, T., Dong, H., & Lin, C. (2020). Institutional shareholders and corporate social responsibility. Journal of Financial Economics, 135(2), 483–504.
Choi, J., Rangan, P., & Singh, S. N. (2016). Do cold images cause cold-heartedness? The impact of visual stimuli on the effectiveness of negative emotional charity appeals. Journal of Advertising, 45(4), 417–426.
Crampton, W., & Patten, D. (2008). Social responsiveness, profitability and catastrophic events: Evidence on the corporate philanthropic response to 9/11. Journal of Business Ethics, 81(4), 863–873.
Cuypers, I. R., Koh, P. S., & Wang, H. (2015). Sincerity in corporate philanthropy, stakeholder perceptions and firm value. Organization Science, 27(1), 173–188.
DeHaan, E., Shevlin, T., & Thornock, J. (2015). Market (in) attention and the strategic scheduling and timing of earnings announcements. Journal of Accounting and Economics, 60(1), 36–55.
DellaVigna, S., & Pollet, J. M. (2009). Investor inattention and Friday earnings announcements. The Journal of Finance, 64(2), 709–749.
Dhaliwal, D. S., Radhakrishnan, S., Tsang, A., & Yang, Y. G. (2012). Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure. The Accounting Review, 87(3), 723–759.
Dickert, S., Sagara, N., & Slovic, P. (2011). Affective motivations to help others: A two-stage model of donation decisions. Journal of Behavioral Decision Making, 24(4), 361–376.
Du, S., Swaen, V., Lindgreen, A., & Sen, S. (2013). The roles of leadership styles in corporate social responsibility. Journal of Business Ethics, 114(1), 155–169.
Dutot, V., Galvez, E. L., & Versailles, D. W. (2016). CSR communications strategies through social media and influence on e-reputation. Management Decision, 54(2), 363–389.
Dyck, A., Lins, K. V., Roth, L., & Wagner, H. F. (2019). Do institutional investors drive corporate social responsibility? International evidence. Journal of Financial Economics, 131(3), 693–714.
Engelberg, J. O., & Gao, P. (2011). In search of attention. The Journal of Finance, 66(5), 1461–1499.
Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal, 56(3), 758–781.
Forgas, J. P. (1995). Mood and judgment: the affect infusion model (AIM). Psychological bulletin, 117(1), 39.
Fricke, E., Fung, S., & Goktan, M. S. (2014). Google Search, information uncertainty, and post-earnings announcement drift. Journal of Accounting & Finance (2158–3625), 14(2).
Gao, F., Faff, R., & Navissi, F. (2012). Corporate philanthropy: Insights from the 2008 Wenchuan earthquake in China. Pacific-Basin Finance Journal, 20(3), 363–377.
Gao, Y., Yang, H., & Hafsi, T. (2019). Corporate giving and corporate financial performance: The S-curve relationship. Asia Pacific Journal of Management, 36(1), 1–27.
Garcia, D. (2013). Sentiment during recessions. The Journal of Finance, 68(3), 1267–1300.
Gautier, A., & Pache, A. C. (2015). Research on corporate philanthropy: A review and assessment. Journal of Business Ethics, 126(3), 343–369.
Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of Management Review, 30(4), 777–798.
Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal, 30(4), 425–445.
Griffin, P. A., & Sun, Y. (2013a). Going green: Market reaction to CSRwire news releases. Journal of Accounting and Public Policy, 32(2), 93–113.
Griffin, P. A., & Sun, Y. (2013b). Strange bedfellows? Voluntary corporate social responsibility disclosure and politics. Accounting & Finance, 53(4), 867–903.
Groza, M. D., Pronschinske, M. R., & Walker, M. (2011). Perceived organizational motives and consumer responses to proactive and reactive CSR. Journal of Business Ethics, 102(4), 639–652.
Hart, O., & Zingales, L. (2017). Companies should maximize shareholder welfare not market value. Journal of Law, Finance, and Accounting, 2(2), 247–275.
Hatfield, E., Cacioppo, J. T., & Rapson, R. L. (1994). Emotional contagion. In Studies in emotion and social interaction. Cambridge: Cambridge University Press.
Heckman, J. J. (1976). The common structure of statistical models of truncation, sample selection and limited dependent variables and a simple estimator for such models. In Annals of economic and social measurement (Vol. 5, No. 4, pp. 475–492). Cambridge: NBER.
Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica: Journal of the Econometric Society, 153–161.
Hegde, S. P., & Mishra, D. R. (2019). Married CEOs and corporate social responsibility. Journal of Corporate Finance, 58(10), 226–246.
Hong, H., & Stein, J. C. (2007). Disagreement and the stock market. Journal of Economic Perspectives, 21(2), 109–128.
Huang, S., Huang, Y., & Lin, T. C. (2019). Attention allocation and return co-movement: Evidence from repeated natural experiments. Journal of Financial Economics, 132(2), 369–383.
Hubbard, T. D., Pollock, T. G., Pfarrer, M. D., & Rindova, V. P. (2018). Safe bets or hot hands? How status and celebrity influence strategic alliance formations by newly public firms. Academy of Management Journal, 61(5), 1976–1999.
John, K., Litov, L., & Yeung, B. (2008). Corporate governance and risk-taking. The Journal of Finance, 63(4), 1679–1728.
Kang, C., Germann, F., & Grewal, R. (2016). Washing away your sins? Corporate social responsibility, corporate social irresponsibility, and firm performance. Journal of Marketing, 80(2), 59–79.
Kearney, C., & Liu, S. (2014). Textual sentiment in finance: A survey of methods and models. International Review of Financial Analysis, 33, 171–185.
Kelley, H. H. (1973). The processes of causal attribution. American Psychologist, 28(2), 107.
Kelley, H. H., & Michela, J. L. (1980). Attribution theory and research. Annual Review of Psychology, 31(1), 457–501.
Kim, J. E., & Johnson, K. K. (2013). The impact of moral emotions on cause-related marketing campaigns: A cross-cultural examination. Journal of Business Ethics, 112(1), 79–90.
Kim, N., Lučivjanská, K., Molnár, P., & Villa, R. (2019). Google searches and stock market activity: Evidence from Norway. Finance Research Letters, 28, 208–220.
Krüger, P. (2015). Corporate goodness and shareholder wealth. Journal of Financial Economics, 115(2), 304–329.
Larcker, D. F., & Zakolyukina, A. A. (2012). Detecting deceptive discussions in conference calls. Journal of Accounting Research, 50(2), 495–540.
Leonidou, C. N., & Skarmeas, D. (2017). Gray shades of green: Causes and consequences of green skepticism. Journal of Business Ethics, 144(2), 401–415.
Liang, H., & Renneboog, L. (2017). Corporate donations and shareholder value. Oxford Review of Economic Policy, 33(2), 278–316.
Loh, R. K. (2010). Investor inattention and the underreaction to stock recommendations. Financial Management, 39(3), 1223–1252.
Louis, H., & Sun, A. (2010). Investor inattention and the market reaction to merger announcements. Management Science, 56(10), 1781–1793.
Maung, M., Miller, D., Tang, Z., & Xu, X. (2019). Value-enhancing social responsibility: Market reaction to donations by family vs. non-family firms with religious CEOs. Journal of Business Ethics, 163(4), 745–758.
Madsen, J., & Niessner, M. (2019). Is investor attention for sale? The role of advertising in financial markets. Journal of Accounting Research, 57(3), 763–795.
Madsen, P. M., & Rodgers, Z. J. (2015). Looking good by doing good: The antecedents and consequences of stakeholder attention to corporate disaster relief. Strategic Management Journal, 36(5), 776–794.
Martin, S. R. (2016). Stories about values and valuable stories: A field experiment of the power of narratives to shape newcomers’ actions. Academy of Management Journal, 59(5), 1707–1724.
Mbanga, C., Darrat, A. F., & Park, J. C. (2019). Investor sentiment and aggregate stock returns: The role of investor attention. Review of Quantitative Finance and Accounting, 53(2), 1–32.
McGuire, J., Dow, S., & Argheyd, K. (2003). CEO incentives and corporate social performance. Journal of Business Ethics, 45(4), 341–359.
McWilliams, A., & Siegel, D. (1997). Event studies in management research: Theoretical and empirical issues. Academy of Management Journal, 40(3), 626–657.
Meznar, M. B., Nigh, D., & Kwok, C. C. (1998). Announcements of withdrawal from South Africa revisited: Making sense of contradictory event study findings. Academy of Management Journal, 41(6), 715–730.
Merchant, A., Ford, J. B., & Sargeant, A. (2010). Charitable organizations’ storytelling influence on donors’ emotions and intentions. Journal of Business Research, 63(7), 754–762.
Muller, A., & Kräussl, R. (2011a). Doing good deeds in times of need: A strategic perspective on corporate disaster donations. Strategic Management Journal, 32(9), 911–929.
Muller, A., & Kräussl, R. (2011b). The value of corporate philanthropy during times of crisis: The sensegiving effect of employee involvement. Journal of Business Ethics, 103(2), 203.
Muller, A. R., Pfarrer, M. D., & Little, L. M. (2014). A theory of collective empathy in corporate philanthropy decisions. Academy of Management Review, 39(1), 1–21.
Narayanasamy, C., Rashid, M., & Ibrahim, I. (2018). Divergence of opinion and moderating effect of investors’ attentions in IPO market: Malaysian evidence. Review of Behavioral Finance, 10(1), 105–126.
Naughton, J. P., Wang, C., & Yeung, I. (2018). Investor sentiment for corporate social performance. The Accounting Review, 94(4), 401–420.
Noval, L. J., & Stahl, G. K. (2017). Accounting for proscriptive and prescriptive morality in the workplace: The double-edged sword effect of mood on managerial ethical decision making. Journal of Business Ethics, 142(3), 589–602.
Pan, L., McNamara, G., Lee, J. J., Haleblian, J., & Devers, C. E. (2018). Give it to us straight (most of the time): Top managers’ use of concrete language and its effect on investor reactions. Strategic Management Journal, 39(8), 2204–2225.
Patten, D. M. (2008). Does the market value corporate philanthropy? Evidence from the response to the 2004 tsunami relief effort. Journal of Business Ethics, 81(3), 599–607.
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.
Pennebaker, J. W., & Francis, M. E. (1996). Cognitive, emotional, and language processes in disclosure. Cognition & Emotion, 10(6), 601–626.
Pennebaker, J. W., Francis, M. E., & Booth, R. J. (2007). Linguistic inquiry and word count: LIWC 2007. Mahway: Lawrence Erlbaum Associates.
Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. The Review of Financial Studies, 22(1), 435–480.
Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal, 37(2), 262–279.
Price, J. M., & Sun, W. (2017). Doing good and doing bad: The impact of corporate social responsibility and irresponsibility on firm performance. Journal of Business Research, 80(11), 82–97.
Ramchander, S., Schwebach, R. G., & Staking, K. I. M. (2012). The informational relevance of corporate social responsibility: Evidence from DS400 index reconstitutions. Strategic Management Journal, 33(3), 303–314.
Ricks, J. M. (2005). An assessment of strategic corporate philanthropy on perceptions of brand equity variables. Journal of Consumer Marketing, 22(3), 121–134.
Ricks, J. M., & Williams, J. A. (2005). Strategic corporate philanthropy: Addressing frontline talent needs through an educational giving program. Journal of Business Ethics, 60(2), 147–157.
Seifert, B., Morris, S. A., & Bartkus, B. R. (2003). Comparing big givers and small givers: Financial correlates of corporate philanthropy. Journal of Business Ethics, 45(3), 195–211.
Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19(3), 425–442.
Shiu, Y. M., & Yang, S. L. (2017). Does engagement in corporate social responsibility provide strategic insurance-like effects? Strategic Management Journal, 38(2), 455–470.
Tausczik, Y. R., & Pennebaker, J. W. (2010). The psychological meaning of words: LIWC and computerized text analysis methods. Journal of Language and Social Psychology, 29(1), 24–54.
Torugsa, N. A., O’Donohue, W., & Hecker, R. (2012). Capabilities, proactive CSR and financial performance in SMEs: Empirical evidence from an Australian manufacturing industry sector. Journal of Business Ethics, 109(4), 483–500.
Vlastakis, N., & Markellos, R. N. (2012). Information demand and stock market volatility. Journal of Banking & Finance, 36(6), 1808–1821.
Walters, B. A., Kroll, M. J., & Wright, P. (2007). CEO tenure, boards of directors, and acquisition performance. Journal of Business Research, 60(4), 331–338.
Wang, H., Choi, J., & Li, J. (2008). Too little or too much? Untangling the relationship between corporate philanthropy and firm financial performance. Organization Science, 19(1), 143–159.
Wang, M., Qiu, C., & Kong, D. (2011). Corporate social responsibility, investor behaviors, and stock market returns: Evidence from a natural experiment in China. Journal of Business Ethics, 101(1), 127–141.
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(4), 661–682.
Yin, D., Bond, S., & Zhang, H. (2014). Anxious or angry? Effects of discrete emotions on the perceived helpfulness of online reviews. MIS Quarterly, 38(2), 539–560.
Yoon, Y., Gürhan-Canli, Z., & Schwarz, N. (2006). The effect of corporate social responsibility (CSR) activities on companies with bad reputations. Journal of Consumer Psychology, 16(4), 377–390.
Zhou, Q., Tan, K. J. K., Faff, R., & Zhu, Y. (2016). Deviation from target capital structure, cost of equity and speed of adjustment. Journal of Corporate Finance, 39, 99–120.
Metadaten
Titel
Valuation Effect of Emotionality in Corporate Philanthropy
verfasst von
Anh Dang
Trung Nguyen
Publikationsdatum
12.06.2020
Verlag
Springer Netherlands
Erschienen in
Journal of Business Ethics / Ausgabe 1/2021
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-020-04551-z

Weitere Artikel der Ausgabe 1/2021

Journal of Business Ethics 1/2021 Zur Ausgabe

Original Paper

A Nozickian Case for Compulsory Employment Injury Insurance: The Example of Sweatshops

Original Paper

On Becoming and Being an Ethical Leader: A Platonic Interpretation

Book Review

Review of Homeland Elegies by Ayad Akhtar

Original Paper

Responsible Leadership and Reputation Management During a Crisis: The Cases of Delta and United Airlines

Original Paper

Frequent CEO Turnover and Firm Performance: The Resilience Effect of Workforce Diversity

Original Paper

The role of Corporate Social Responsibility in Organisational Identity Communication, Co-Creation and Orientation