Kölbel, Busch, and Jansco (2017)

Kölbel, Julian, Timo Busch, and Leonhardt M. Jansco. “How media coverage of social irresponsibility increases financial risk.” Strategic Management Journal, November 2017.

From the authors’ research summary: “This article explores the relationship between corporate social irresponsibility (CSI) and financial risk. We posit that media coverage of CSI generates risk by providing conditions that increase the potential for stakeholder sanctions. Through analyzing an international panel of 539 firms during 2008–2013, we find that firms receiving higher CSI coverage face higher financial risk. We show that the reach of the reporting media outlet is a critical condition for this relationship. Once the outlet has a high reach, the severity of CSI coverage is a boundary condition that further reinforces the effect.”

lk note: Won prize for best paper at PRI-CDC Academic Conference, Nov. 2013. Uses RepRisk data.

Link: https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2647