The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage

We examine the effect of CSR information on stakeholder decision-making, specifically on supply-chain contracting. To obtain plausibly exogenous variation in CSR information, we exploit the 2017 expansion of CSR rating coverage from Russell 1000 to Russell 2000 firms (hereafter, “treated firms”) by...

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Main Authors: Darendeli, Alper, Fiechter, Peter, Hitz, Jörg-Markus, Lehmann, Nico
Other Authors: Nanyang Business School
Format: Article
Language:English
Published: 2023
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Online Access:https://hdl.handle.net/10356/165622
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-1656222023-05-19T07:31:18Z The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage Darendeli, Alper Fiechter, Peter Hitz, Jörg-Markus Lehmann, Nico Nanyang Business School Business::Accounting Corporate Social Responsibility Stakeholder Decision-Making We examine the effect of CSR information on stakeholder decision-making, specifically on supply-chain contracting. To obtain plausibly exogenous variation in CSR information, we exploit the 2017 expansion of CSR rating coverage from Russell 1000 to Russell 2000 firms (hereafter, “treated firms”) by Thomson Reuters Asset4. Using a difference-in-differences design with the previously covered Russell 1000 supplier firms as the control group, we find a negative effect of the CSR information shock for treated suppliers with comparatively low CSR ratings. On average, these suppliers experience reductions in their number of contracts and corporate customers. In cross-sectional analyses, we document variation in our treatment effects consistent with two underlying mechanisms: (i) benchmarking of suppliers' CSR by corporate customers and (ii) CSR-related public pressure on customer-supplier contracting. Collectively, our findings provide novel evidence on the causal effect of CSR information on stakeholder decision-making. Nanyang Technological University Published version Darendeli acknowledges financial support from NTU's Start-Up Grant. 2023-04-04T05:46:35Z 2023-04-04T05:46:35Z 2022 Journal Article Darendeli, A., Fiechter, P., Hitz, J. & Lehmann, N. (2022). The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage. Journal of Accounting and Economics, 74(2-3), 101525-. https://dx.doi.org/10.1016/j.jacceco.2022.101525 0165-4101 https://hdl.handle.net/10356/165622 10.1016/j.jacceco.2022.101525 2-s2.0-85137930686 2-3 74 101525 en NTU-SUG Journal of Accounting and Economics © 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic Business::Accounting
Corporate Social Responsibility
Stakeholder Decision-Making
spellingShingle Business::Accounting
Corporate Social Responsibility
Stakeholder Decision-Making
Darendeli, Alper
Fiechter, Peter
Hitz, Jörg-Markus
Lehmann, Nico
The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage
description We examine the effect of CSR information on stakeholder decision-making, specifically on supply-chain contracting. To obtain plausibly exogenous variation in CSR information, we exploit the 2017 expansion of CSR rating coverage from Russell 1000 to Russell 2000 firms (hereafter, “treated firms”) by Thomson Reuters Asset4. Using a difference-in-differences design with the previously covered Russell 1000 supplier firms as the control group, we find a negative effect of the CSR information shock for treated suppliers with comparatively low CSR ratings. On average, these suppliers experience reductions in their number of contracts and corporate customers. In cross-sectional analyses, we document variation in our treatment effects consistent with two underlying mechanisms: (i) benchmarking of suppliers' CSR by corporate customers and (ii) CSR-related public pressure on customer-supplier contracting. Collectively, our findings provide novel evidence on the causal effect of CSR information on stakeholder decision-making.
author2 Nanyang Business School
author_facet Nanyang Business School
Darendeli, Alper
Fiechter, Peter
Hitz, Jörg-Markus
Lehmann, Nico
format Article
author Darendeli, Alper
Fiechter, Peter
Hitz, Jörg-Markus
Lehmann, Nico
author_sort Darendeli, Alper
title The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage
title_short The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage
title_full The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage
title_fullStr The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage
title_full_unstemmed The role of corporate social responsibility (CSR) information in supply-chain contracting: evidence from the expansion of CSR rating coverage
title_sort role of corporate social responsibility (csr) information in supply-chain contracting: evidence from the expansion of csr rating coverage
publishDate 2023
url https://hdl.handle.net/10356/165622
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