Hawn, Chatterji, and Mitchell (2013)

Hawn, Olga, Aaron Chatterji, and Will Mitchell. “How Financial Market Legitimacy Conditions Changes in Social Legitimacy: The Impact of Additions and Deletions by the Dow Jones Sustainability Index.” Working paper (Duke/Boston University), 2013.

From the authors’ abstract: “This study considers the interplay between two dimensions of organizational legitimacy: financial market legitimacy arising from a firm’s alignment with the norms and values of financial market actors and social legitimacy stemming from the firm’s alignment with the norms and values of non-market actors. Using a large-scale financial event study of additions and deletions by Dow Jones Sustainability Index, we demonstrate that firms with higher financial market legitimacy benefit less from increased social legitimacy and lose less from decreased social legitimacy.” 

Link: https://faculty.fuqua.duke.edu/~ronnie/bio/DJSI-2013-04-23.pdf