Glass Houses? Market Reactions to Firms Joining the UN Global Compact

Abstract

business ethics, affiliation, social responsibility, event study, MNE,

Secondary Stakeholders as Agents of Influence: Three Essays on Political Risk, Reputation and Multinational Performance

“…Compact (Janney, Dess, & Forlani, 2009), and entering into multi-stakeholder partnerships with NGOs, academics, and other civil society groups (Dahan et al, 2010).…”

The Survival and Stock Performance of Emerging Country Firms in the United States

“…As a side benefit, affiliation also establishes a positive reputation for multinational firms (MNEs) joining the UNGC (Janney, Dess, & Forlani, 2009). By joining global organizations or alliances, ECFs are able to build up a network at the level of the global market (Janney et al, 2009), increasing the interactions between ECFs and other foreign firms. Consequently, they are exposed to new external knowledge during the interaction with other foreign firms.…”

“…Some studies have investigated market reactions to joint venture announcements (Madhavan & Prescott, 1995), and others have addressed the context of the Initial Public Offering (IPO) (e.g. Titman & Trueman, 1986) and firms' joining UNGC (Janney, Dess, & Forlani, 2009). Most of the research draws attention to the contingent factors of events, and investigates their influences on the stock performance.…”

“…Limited research has examined how the specific heterogeneity of firms affects the market returns (Gaur, Malhotra, & Zhu, 2013). Recent work on market reaction to UNGC participation (Janney et al 2009) compares the influences of country difference on the market returns. But merely home country differences (Europe vs. U.S.) with two controls (firm age and firm size) are hardly able to present the whole picture.…”

“…Chapman, Uggerslev, Carrol, Piasentin, & Jones, 2005;Ehrhart & Ziegert, 2005), crisis situation (Marcus & Goodman, 1991), and consumer behavior. Some researchers have extended the theory to the firm level, such as Milgrom & Roberts (1986), Ross (1977), Janney et al, (2009), and so on. They generally asserted that firms signal to a market to indicate firms' quality, commitments, or performance (e.g., Certo, 2003).…”