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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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 |
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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 |
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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. |
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Nanyang Business School |
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Nanyang Business School Darendeli, Alper Fiechter, Peter Hitz, Jörg-Markus Lehmann, Nico |
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Article |
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Darendeli, Alper Fiechter, Peter Hitz, Jörg-Markus Lehmann, Nico |
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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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1772828002711764992 |