The Effects of CSR Reputation and CSR Crisis Response Strategy on Investor Judgments

Abstract

I use a controlled experiment to examine, in the context of Corporate Social Responsibility (CSR) crises, whether investors' investment judgments are influenced by a firm's CSR reputation and CSR crisis response strategy. I find that for good CSR reputation firms, the use of a rebuild or deny crisis response strategy does not lead to improvements in investment judgments. However, for bad CSR reputation firms, the use of a deny response strategy leads to improvements in investment judgments while the use of a rebuild strategy does not.

Citation

Goh, C. (2022), "The Effects of CSR Reputation and CSR Crisis Response Strategy on Investor Judgments", Karim, K.E. (Ed.) Advances in Accounting Behavioral Research (Advances in Accounting Behavioural Research, Vol. 25), Emerald Publishing Limited, Leeds, pp. 31-57. https://doi.org/10.1108/S1475-148820220000025002