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When Doing Good Backfires: The Effects of Corporate Social Responsibility Fit on the Decisions of Long and Short-Term Investors

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dc.contributor.advisorChristopher P. Agoglia
dc.contributor.advisorM. David Piercy
dc.contributor.advisorElaine Wang
dc.contributor.advisorLinda Isbell
dc.contributor.authorSealy, Chezham
dc.contributor.departmentUniversity of Massachusetts Amherst
dc.date2024-03-27T20:14:42.000
dc.date.accessioned2024-04-26T15:24:03Z
dc.date.available2024-04-26T15:24:03Z
dc.date.submittedMay
dc.date.submitted2018
dc.description.abstractInvestors, analysts, and news outlets have expressed concerns that corporate social responsibility (CSR) has deviated from its original altruistic purpose of improving society to a marketing ploy aimed at managing perceptions of shareholders and improving the bottom line of companies. In this study, I analyze how the fit of a company’s business operations to their CSR activities affects the investment willingness of long and short-term investors. While prior research shows numerous positive outcomes associated with CSR, I predict and find that low fit CSR activities can decrease the investment willingness of long-term investors when companies are involved in controversial “sin” industries (e.g., alcohol, tobacco, gaming). Even though the CSR initiatives are viewed positively in isolation, this finding suggests that some CSR initiatives can decrease firm value. Conversely, I find that long-term investors value both low fit and high fit CSR for “virtue” firms that are involved in socially responsible industries; however, high fit CSR activities maximize the investment willingness of potential shareholders. Importantly, my study also shows that CSR fit only affects long-term investors. Short-term investors view all types of CSR negatively. These findings will inform regulators amid the ongoing debate to regulate CSR reporting and help managers to better design CSR initiatives to maximize the return on their investment as well as the positive effects on society.
dc.description.degreeDoctor of Philosophy (PhD)
dc.description.departmentManagement
dc.identifier.doihttps://doi.org/10.7275/11948586
dc.identifier.orcidN/A
dc.identifier.urihttps://hdl.handle.net/20.500.14394/17474
dc.relation.urlhttps://scholarworks.umass.edu/cgi/viewcontent.cgi?article=2353&context=dissertations_2&unstamped=1
dc.source.statuspublished
dc.subjectcorporate social responsibility fit
dc.subjectinvestment horizon
dc.subjectsin firm
dc.subjectvirtue firm
dc.subjectsin stock premium
dc.subjectinvestor decision making
dc.subjectAccounting
dc.subjectAdvertising and Promotion Management
dc.subjectBusiness Administration, Management, and Operations
dc.subjectFinance and Financial Management
dc.titleWhen Doing Good Backfires: The Effects of Corporate Social Responsibility Fit on the Decisions of Long and Short-Term Investors
dc.typeopenaccess
dc.typearticle
dc.typedissertation
digcom.contributor.authorisAuthorOfPublication|email:csealy@umass.edu|institution:University of Massachusetts Amherst|Sealy, Chezham
digcom.identifierdissertations_2/1274
digcom.identifier.contextkey11948586
digcom.identifier.submissionpathdissertations_2/1274
dspace.entity.typePublication
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