JOURNAL ARTICLE

The use of corporate social responsibility in response to product‐harm crisis: How do stock market reactions matter?

  • Published In: Corporate Social Responsibility & Environmental Management, 2024, v. 31, n. 4. P. 3081 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Ouyang, Zhe; Wang, Xiaojiao; Liu, Yang 3 of 3

Abstract

The initial stock market reaction to a product‐harm crisis is an important factor motivating firms to engage in corporate social responsibility (CSR). By analyzing event data on product‐harm crises in Chinese listed companies spanning from 2009 to 2019, we uncover evidence that crisis‐related abnormal returns have a significant negative association with the subsequent growth of CSR. Importantly, we find that this negative relationship is especially pronounced for firms that have a greater need to restore moral legitimacy, such as those receiving high levels of media favorability and positive analyst recommendations. These findings offer novel insights into the motivations behind firms' increased investment in CSR following product‐harm crises from a legitimacy perspective. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Corporate Social Responsibility & Environmental Management. 2024/07, Vol. 31, Issue 4, p3081
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2024
  • ISSN:1535-3958
  • DOI:10.1002/csr.2739
  • Accession Number:178229072
  • Copyright Statement:Copyright of Corporate Social Responsibility & Environmental Management is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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