Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility
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Article
Abstract
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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Publication Info
Published in Entrepreneurship Theory and Practice, Volume 46, Issue 1, 2021.
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© The Author(s) 2021. This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage). Request permissions for this article.
APA Citation
Sekerci, N., Jaballah, J., van Essen, M., & Kammerlander, N. (2021). Investors’ reactions to CSR News in family versus nonfamily firms: A Study on Signal (in)credibility. Entrepreneurship Theory and Practice, 46(1), 82–116. https://doi.org/10.1177/10422587211010498