Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility
Document Type
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.
Digital Object Identifier (DOI)
Publication Info
Published in Entrepreneurship Theory and Practice, Volume 46, Issue 1, 2021.
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
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