The role of the media in socially responsible investing

Lei, Shan; Zhang, Yafei

doi:10.1108/ijbm-09-2019-0332

Cited by 9 publications

(6 citation statements)

References 58 publications

(89 reference statements)

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“…While we are unable to definitively determine the specific personal reason(s) behind SRI, this study allowed us to contribute to the emerging literature on individual motives of SRI (find a recent review of emerging themes in Daugaard 2020) and expand on three possibilities. First, this study provides additional evidence of how CSR-related news influence investors' attitudes about the evaluation of the stock market and their investment decisions afterwards, which appears positively associated with SRI (Lei and Zhang 2020;W. Yang et al 2017).…”

Section: Discussionmentioning

confidence: 72%

“…Second, investors in such difficult times filled with financial market uncertainty are particularly inclined to favour those companies using news coverage and media content to communicate their CSR actions. Since the study of media coverage remains an emerging topic in the SRI literature (e.g., Lei and Zhang 2020), media coverage of CSR actions was considered to reflect on the collective beliefs about COVID-19. As Bourghelle (2005) noted, financial investors usually all read the same press and listen to the same experts, so the media is an essential mediator in the formation of collective beliefs.…”

Section: Discussionmentioning

confidence: 99%

“…The most common SRI strategy has been excluding from portfolios those companies involved in polemic, harming, or negatively perceived practices (i.e., environmental damages, unethical behaviours, corruption, harassment scandals, gender inequality, and so on) (Trinks and Scholtens 2017). Previous works have analysed the role of the media in SRI (i.e., Lei and Zhang 2020); however, to the best of our knowledge, no previous studies have addressed SRI during times of severe threat and crisis impact due to COVID-19, where investors may have a different view about those companies engaging in ESG and CSR practices. Boltanski and Chiapello (2005) theory of convention focuses on analysing cognitive interactions and the diversity of equilibriums using discourse and conventions.…”

Section: Sri In Times Of Upheavalmentioning

confidence: 99%

“…Typically, both finance and CSR studies use data from the media. Recent studies have investigated the role of the media in financial markets and CSR (Capelle-Blancard and Petit 2019; Dumas and Louche 2016;Holder-Webb et al 2009), and others have analysed the quality of disclosure sources of ESG-CSR in aiding investment decisions (Cooper and Weber 2020;Dela Cruz et al 2020;Lei and Zhang 2020). Previous results show how the media influenced investors' attitudes about the evaluation of the stock market and their investment decisions afterwards (W. .…”

Section: The Role Of the Media In Communicating Esg-csr Practicesmentioning

confidence: 99%

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Socially Responsible Investing as a Competitive Strategy for Trading Companies in Times of Upheaval Amid COVID-19: Evidence from Spain

Palma-Ruiz

Castillo‐Apraiz

Martínez

2020

IJFS

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Sustainable and responsible investing (SRI) is a strategy that seeks to combine both financial return and social good. The need to create and preserve SRI represents a key argument in investment decision-making, which leads other firms and investors to make strategic decisions beyond financial logic, based on environmental, social, and governance (ESG) factors. Within this framework, this paper aims to further clarify the understanding of potentially profitable strategies for firms during a global crisis such as a pandemic. Both primary and secondary data were gathered, and descriptive analyses were conducted. In Spain, several IBEX-35 companies announced donations amid the COVID-19 crisis. First, companies were classified into two groups based on donations made. For this, we searched for ESG online news. Then, profitability records amongst companies were identified and compared. In the trading session after the announcements, we found 12 of the 35 companies that made donations had a higher performance index of more than 2 and 3 points over the companies that did not make donations. With a weekly perspective, the difference was 91 and 60 basis points, respectively. These results suggest that in times of upheaval, investors base their strategy on ESG factors, contributing to the emerging literature on individual motives of SRI. Second, by conducting a survey and collecting data from 575 Spanish citizens, we conclude that after this crisis, people’s perceptions towards corporate social responsibility (CSR) will change, affecting consumption preferences in those companies that exhibited socially irresponsible or unsupportive behaviour. Hence, the reputation of firms, their social image, and social trust will play an important role in the near future.

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Section: Discussionmentioning

confidence: 72%

Section: Discussionmentioning

confidence: 99%

Section: Sri In Times Of Upheavalmentioning

confidence: 99%

Section: The Role Of the Media In Communicating Esg-csr Practicesmentioning

confidence: 99%

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Socially Responsible Investing as a Competitive Strategy for Trading Companies in Times of Upheaval Amid COVID-19: Evidence from Spain

Palma-Ruiz

Castillo‐Apraiz

Martínez

2020

IJFS

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“…In his seminal work on the construction of media reputation as a corporate strategic resource, Deephouse (2000) has shown the positive relationship between the amount (or favorableness) of media reputation and the bank's return on assets and how a bank's media favorableness is a valuable, difficult-to-imitate, non-substitutable resource which banks in a single market compete to build. By analyzing historical data on corporate social responsibility (CSR) media coverage and socially responsible index (SRI), Lei and Zhang (2019) have shown the impact of media content and media sentiment of CSR-related news articles on SRI. Vogler et al (2016) showed how the infomediation of powerful stakeholders can impact the reputation of a company.…”

Section: Literature Reviewmentioning

confidence: 99%

How infomediaries on Twitter influence business outcomes of a bank

Illia

Colleoni

Meggiorin

2021

IJBM

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PurposeThe purpose of this paper is to empirically explore under which conditions Tweets of infomediaries (i.e. ordinary users having few or no followers on Twitter) might nevertheless promote a negative sentiment toward a corporation to the point of having a negative impact on the corporation's outcomes.Design/methodology/approachThe empirical study is based on a unique database that combines a sample of one year of Twitter conversations about an Italian bank and its daily business performances (i.e. number of closures and openings). The relationship between these two is analyzed using autoregressive time series models (VAR).FindingsFindings indicate that a tweet affects a bank’s outcomes only when embedded in a larger conversation about the bank, rather than simply repetitively shared. These findings contribute to two debates within bank marketing literature. First is the debate about the role of infomediaries in banks' outcomes, as it urges to reconsider the way banks' online reputation is conceptualized and measured. Second is the debate on opportunities and threats of social media for the banking industry, as it indicates that negative sentiment expressed by the general public influences not only stock markets but also directly banks' outcomes.Originality/valueThis study allows managers and corporations to understand what to do when conversations of unknown individuals become threatening for the company. To influence such situations, the company should identify not only the actors that are influencers but also the communications that have been popular in the past for their brand or the brand of their competitors and monitor the conversational volume and broadness.

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Board competence and green innovation—Does external governance matter?

Yousaf,

Tauni,

Yousaf

et al. 2023

Bus Strat Env

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Previous research examining the link between board attributes and ecological strategies such as green innovation has primarily focused on structural board attributes, yielding mixed findings. Moreover, the critical contextual grounds that shape the relationship between board attributes and green innovation have often been overlooked, leading to potential biases in empirical investigations. Considering that competence drives outstanding performance, we developed a unique measure of board competence that represents the board's intrinsic ability to perform in corporate strategies. Drawing on a holistic perspective of agency, resource dependence, and stakeholder theories, we posit a strong relationship between board competence and green innovation. Furthermore, we contend that this association is moderated by external governance mechanisms, namely audit quality, media coverage, and imitative pressure. Through our analysis of publicly traded Chinese companies, we found compelling evidence to support our assertions. These findings have important implications for policymakers, practitioners, and managers.

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The role of the media in socially responsible investing

Cited by 9 publications

References 58 publications

Socially Responsible Investing as a Competitive Strategy for Trading Companies in Times of Upheaval Amid COVID-19: Evidence from Spain

Socially Responsible Investing as a Competitive Strategy for Trading Companies in Times of Upheaval Amid COVID-19: Evidence from Spain

How infomediaries on Twitter influence business outcomes of a bank

Board competence and green innovation—Does external governance matter?

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