Do investors in Spain react to news on sustainability and corporate social responsibility?

Izquierdo, María Ángeles Fernández; Arago-Manzana, V.A.; Matallín‐Sáez, Juan Carlos; Nieto-Soria, Luisa

doi:10.1504/ijse.2009.024313

Cited by 6 publications

(4 citation statements)

References 37 publications

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“…Last, our study also contributes to a better understanding of how outside investors react to positive and negative CSR news. Generally, our regression analyses reveal insignificant intercepts for both positive and negative CSR news (Table 2), which is in line with the previous findings of Capelle-Blancard and Petit (2019) and Fernandez-Izquierdo et al (2009). Moreover, our research findings contribute to the disentanglement of the stock market implications of CSR by showing that investors' reactions to such news substantially depend on factors that affect signal credibility (such as family firm status) or determine the signaling environment (i.e., the economic situation) and thus the signal fit (Jaskiewicz et al, 2020).…”

Section: Discussionsupporting

confidence: 92%

“…What makes CSR news even more interesting from a signaling perspective is that the interpretation of CSR might be ambiguous and context dependent. While negative CSR news has previously been shown to trigger negative (Krüger, 2015) or insignificant (Fernandez-Izquierdo et al, 2009) reactions by investors, the effect of positive CSR news is more complex (e.g., Barnea & Rubin, 2010;Margolis et al, 2009). Some researchers have proposed that managers can "do well by doing good" (e.g., Falck & Heblich, 2007;Fatemi et al, 2015;Flammer & Ioannou, 2015), resulting in a positive market reaction, while others are more pessimistic.…”

Section: Csr As An Important Signalmentioning

confidence: 99%

“…5. In line with such opposing theoretical arguments, the empirical evidence is ambiguous (see Malik, 2015, for an overview of studies): while some researchers have revealed a positive effect of positive firm CSR news on firm performance (Arya & Zhang, 2009;Ramchander et al, 2012), others have revealed a negative effect (Krüger, 2015), and still others have not detected a significant effect (Capelle-Blancard & Petit, 2019;Fernandez-Izquierdo et al, 2009). 6.…”

Section: Corporate Governancementioning

confidence: 99%

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

Sekerci

Jaballah

Essen

et al. 2021

Entrepreneurship Theory and Practice

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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.

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Section: Discussionsupporting

confidence: 92%

Section: Csr As An Important Signalmentioning

confidence: 99%

Section: Corporate Governancementioning

confidence: 99%

See 1 more Smart Citation

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

Sekerci

Jaballah

Essen

et al. 2021

Entrepreneurship Theory and Practice

View full text Add to dashboard Cite

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“…Godos-Díaz, Fernández-Gago, & Cabeza-García, 2012;Griffin & Mahon, 1997;López et al, 2007;Martínez-Campillo et al, 2012;Reverte, 2009Reverte, , 2011Waddock & Graves, 1997) and the market value of shares (Black, Carnes, & Richardson, 2000;Callado & Utrero, 2008;Fernández et al, 2009;McGuire et al, 1988;Nieto, Fernández, & Cabeza, 2012;Prado et al, 2008;Roberts & Dowling, 2002).…”

Section: The Second Of Preston and O'bannon's (1997) Hypothesesmentioning

confidence: 99%

Corporate Social Responsibility and Financial Performance: The Spanish Case

Madorran

Garcia

2016

Rev. adm. empres.

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The enormous interest aroused by corporate social responsibility both in the academic and the business worlds forms the background for this study. Its objective is to analyze the relationship between corporate social responsibility and financial performance in view of the debate in the literature on the subject. The study focuses on a sample of Spanish companies taken from the IBEX 35 stock market index, using panel data methodology, which offers advantages in comparison to methodologies used in other studies. We analyzed the period from 2003 to 2010. Our findings suggest that there is no obvious relationship between corporate social responsibility and financial results, at least in the case of Spain.KEYWORDS | Corporate social responsibility, panel data, performance, Spanish firms, IBEX 35. [2003][2004][2005][2006][2007][2008][2009][2010]. Los resultados sugieren que la relación entre responsabilidad social y resultados no es tan obvia, al menos para el caso español. RESUMO O enorme interesse gerado pela responsabilidade social corporativa tanto no mundo acadêmico quanto no empresarial forma o pano de fundo para este estudo. Seu objetivo é analisar a relação entre a responsabilidade social corporativa e o desempenho financeiro em vista do debate existente na literatura sobre o tema. O estudo concentra-se em uma amostra de empresas espanholas tomadas do índice IBEX 35, da bolsa de valores de Madri, utilizando a metodologia de dados em painel, que oferece vantagens em comparação com metodologias utilizadas em outros estudos. Analisamos o período que abrange os anos de 2003 a 2010. Nossas conclusões sugerem que não há relação óbvia entre a responsabilidade social corporativa e os resultados financeiros, ao menos no caso da Espanha. PALAVRAS-CHAVE | Responsabilidade social corporativa, dados em painel, desempenho, empresas espanholas, IBEX 35. RESUMEN El enorme interés que despierta la responsabilidad social corporativa tanto en el ámbito empresarial como académico da sentido a este trabajo. El objetivo del trabajo es analizar la relación entre la responsabilidad social corporativa y sus resultados financieros, ya que existe debate en la literatura académica sobre esta cuestión. La cuestión de análisis se aplica a una muestra de empresas españo-las que cotizan en el IBEX 35, utilizando una metodología de datos de panel que aporta novedades a otros análisis realizados. El período de análisis abarca desde PALABRAS CLAVE | Responsabilidad social corporativa, datos de panel, resultados, empresas españo-las, IBEX 35. RAE-Revista de Administração de Empresas | FGV/EAESPDOI INTRODUCTIONIt is a well-known fact that businesses are currently incorporating corporate social responsibility (henceforth, CSR) criteria into their activities. The demands of a changing environment have led firms to pay ever greater attention to their influence over it, both in economic and social terms and those of the environment.In this context, firms have also been seeking competitive advantages sustainable on a long-term basis in a turb...

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Corporate scandals and the reliability of ESG assessments: evidence from an international sample

Utz

2017

Rev Manag Sci

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This paper studies the reliability of environmental, social, and governance (ESG) assessments in the case of corporate scandals. Reliable disclosures on ESG assessments may reduce information asymmetries when it comes to due diligence, for instance. We use the press release of corporate scandals, which are seen as being unexpected events, and analyze ESG assessments before, during, and after the event year. We find a significant decline in retrospective controversy indicators during the period in which the scandals are released. Subsequent to the scandals, we document a rebound of these indicators. The assessments of forwardlooking indicators indicate slightly significant increases during the scandal period. Moreover, our findings show that aggregated ESG assessments consisting of both retrospective and forward-looking indicators are useless when it comes to predicting corporate scandals. Therefore, the managerial implication of this paper recommends educating managers and investors upon how to obtain a comprehensive vision of the corporate social responsibility of a firm based on single ESG assessment indicators.

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Do investors in Spain react to news on sustainability and corporate social responsibility?

Cited by 6 publications

References 37 publications

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

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

Corporate Social Responsibility and Financial Performance: The Spanish Case

Corporate scandals and the reliability of ESG assessments: evidence from an international sample

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