Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility

Sekerci, Naciye; Jaballah, Jamil; Essen, Marc van; Kammerlander, Nadine

doi:10.1177/10422587211010498

Cited by 21 publications

(17 citation statements)

References 172 publications

(309 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The signaling environment is central to the signaling process because it affects the credibility of signals and their capability to reduce information asymmetries in the market (Lester et al, 2006). Some studies have analyzed several components that make up this environment, such as institutions, industries, or firm‐level variables (Lester et al, 2006; Ndofor & Levitas, 2004; Park & Patel, 2015; Sekerci et al, 2022; Yang et al, 2021). Other studies explicitly consider specific stakeholders as an element of the signaling environment (Gallus & Frey, 2017; Jiang et al, 2020; Vanacker et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

The firm under the spotlight: How stakeholder scrutiny shapes corporate social responsibility and its influence on performance

Forcadell

Lorena

Aracil

2022

Corp Soc Responsibility Env

View full text Add to dashboard Cite

Since stakeholders cannot directly observe corporate social responsibility (CSR) efforts, companies attempt to back up their increasing sustainability claims by sending CSR signals. The environment in which signaling takes place influences the credibility of the signals. Among the factors that make up the signaling environment, the overall exposure of the company to different stakeholders (i.e., stakeholder scrutiny) has been neglected by the literature. Using signaling and stakeholder theories, we argue how stakeholder scrutiny shapes CSR signals' credibility. We empirically analyze a sample of 5762 firms across several sectors from 23 developed countries from 2013 to 2017. Stakeholder scrutiny exercises a positive effect on the credibility of CSR signals through a mediated-moderated impact of CSR (across environmental, social, and governance dimensions) on firm performance.

show abstract

Section: Introductionmentioning

confidence: 99%

The firm under the spotlight: How stakeholder scrutiny shapes corporate social responsibility and its influence on performance

Forcadell

Lorena

Aracil

2022

Corp Soc Responsibility Env

View full text Add to dashboard Cite

show abstract

“…Family ownership has a negative moderating effect on the relationship between CSR and information asymmetry, reversing the original negative effect. The effect between information asymmetry and CSR is negatively moderated by family ownership, reversing the original effect in family firms Maung et al ( 2020 ) – Financial market reaction (moderated by family management) Signaling theory Quantitative (10 year panel) – USA The financial markets react positively to the donations of religious CEOs and are further positively moderated by is the presence of a founder or family CEO Naciye Sekerci et al ( 2022 ) – Investors reaction (moderated by family ownership and management) Signaling theory Quantitative 133 firms (11 year panel) L France Markets react more positively to CSR news from family firms than from non-family firms Pan et al ( 2018 ) – Financial outcomes; post-succession performance – Quantitative 885 firms (9 year panel) – China Family firms exhibit more corporate philanthropy when the handover to the second generation is imminent. In the process, better market and accounting performance is achieved in addition to generally poor performance, indicating a strategic deployment Panwar et al ( 2014 ) – External non-financial outcomes – Quantitative 278 US residents (cross-sectional) – USA Firm outsiders perceive the legitimacy of CSR measures of family-owned firms as higher than those of publicly listed firms Samara and Arenas ( 2017 ) – Internal non-financial outcomes; long-term family firm survival and success; firm reputation ...…”

Section: Appendixmentioning

confidence: 95%

“…The research literature determines two main reasons family firms generate augmented outcomes through CSR. The signaling effect associated with family firm status prompts external non-financial outcomes (e.g., Martínez-Ferrero et al, 2018 ; Maung et al, 2020 ; Sekerci et al, 2022 ), and the familiness dynamic, which allows family firms to translate CSR into positive financial and internal non-financial outcomes (e.g., Craig & Dibrell, 2006 ; Pan et al, 2018 ; Wagner, 2010 ). The signaling effect means external stakeholders are less likely to perceive the family firm’s CSR activities as opportunistic green-washing, particularly in the case of SMEs where the owning family is evident (e.g., Ahmad et al, 2020 ; Dangelico, 2017 ; O’Boyle et al, 2010 ) but also with large, publicly listed family firms (e.g., Biscotti et al, 2018 ; Kashmiri & Mahajan, 2014a ; Wu et al, 2014 ).…”

Section: Current Research Statusmentioning

confidence: 99%

“…Previous findings dealt with the financial and non-financial firm outcomes while only theorizing about family outcomes without empirically studying them. However, more and more studies have recently scrutinized CSR outcomes in family firms (e.g., Hsueh, 2018 ; Lin et al, 2020 ; Sekerci et al, 2022 ). The empirical scrutiny on CSR family outcomes is logical, considering CSR is a firm-level construct.…”

Section: Future Directions Of Researchmentioning

confidence: 99%

See 1 more Smart Citation

Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field

et al. 2023

View full text Add to dashboard Cite

This systematic literature review contributes to the increasing interest regarding corporate social responsibility (CSR) in family firms—a research field that has developed considerably in the last few years. It now provides the opportunity to take a holistic view on the relationship dynamics—i.e., drivers, activities, outcomes, and contextual influences—of family firms with CSR, thus enabling a more coherent organization of current research and a sounder understanding of the phenomenon. To conceptualize the research field, we analyzed 122 peer-reviewed articles published in highly ranked journals identifying the main issues examined. The results clearly show a lack of research regarding CSR outcomes in family firms. Although considered increasingly crucial in family firm research, a study investigating family outcomes (e.g., family community status, family emotional well-being), as opposed to firm outcomes, is missing. This literature review outlines the current state of research and contributes to the actual debate on CSR in family firms by discussing how family firms can use CSR activities as strategic management tools. Moreover, our analysis shows a black box indicating how CSR links different antecedents and outcomes. The black box is significant since firms generally need to know where to allocate their scarce resources to generate the best outcomes. We identify nine research questions based on these findings, which we hope will inspire future research.

show abstract

“…Existing studies have focused on the differences between family and non-family firms ( Mullins and Schoar, 2016 ; Chrisman et al, 2017 ; Sekerci et al, 2022 ). Compared with non-family firms, an important task of family firms is to maintain the family’s own interests ( Gómez-Mejía et al, 2007 ; Neff, 2015 ).…”

Section: Introductionmentioning

confidence: 99%

Fitting the name or unworthy of the name?—Does the name of family firm major shareholder influence family’s egoistic behavior?

Cheng

et al. 2022

Front. Psychol.

View full text Add to dashboard Cite

It has been generally believed that the major shareholders of family firms are more willing to implement egoistic behaviors aimed at benefiting the family. This study analyses whether the major shareholder of the family firm whose name contains “Confucian symbols” such as benevolence, righteousness, loyalty, and kindness will reduce family self-interested behaviors as his name indicates. Using a sample consisting of all 425 family firms listed on Small and Medium Enterprise Board and Growth Enterprise Board, the result shows that the major shareholder whose name contains Confucian symbols is less likely to misappropriate corporate assets and less likely to make “family-first” personnel arrangements, meanwhile is more open to external supervision. Further mechanism testing reveals that the major shareholder whose name contains Confucian symbols also tends to choose corporate culture that reflects Confucianism. The study confirms that the name of the major shareholder is one of the factors which can affect the operation of the family business, demonstrates that different family firms have different attitudes towards family self-interest, and promotes the extant research from the “differences between family and non-family firms” level further to the “differences among family firms running by different families” level.

show abstract

Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility

Cited by 21 publications

References 172 publications

The firm under the spotlight: How stakeholder scrutiny shapes corporate social responsibility and its influence on performance

The firm under the spotlight: How stakeholder scrutiny shapes corporate social responsibility and its influence on performance

Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field

Fitting the name or unworthy of the name?—Does the name of family firm major shareholder influence family’s egoistic behavior?

Contact Info

Product

Resources

About