Testing the Change in Correlation Structure across Markets: High-Dimensional Data

Nair Abhilash S () and Kalagnanam Suresh ()
Additional contact information
Nair Abhilash S: Indian Institute of Management Kozhikode
Kalagnanam Suresh: Edwards School of Business, University of Saskatchewan

No 431, Working papers from Indian Institute of Management Kozhikode

Abstract: The purpose of this study is to test whether CSR engagement provides insurance like effect even after the firm has faced an integrity questioning event. The impact of this integrity based negative event is measured as the media sentiment while reporting the event. Accordingly, we test whether prior CSR engagement prompts media to give the firm the benefit of doubt when it is accused of ‘grand corruption’. The study employs techniques of textual analysis combining various dictionaries and multiple media sources to estimate the sentiment score. Accordingly, we analyse 45,710 media reports, covering firms allegedly involved in ‘grand corruption’. The hypotheses are tested following standard panel data analysis techniques. The study finds no evidence of CSR providing an insurance like effect, particularly in the context of integrity-based negative events. Rather, the results suggest that the media may have viewed the CSR activity of sample firms as a public relations exercise and penalized them for being involved in grand corruption.

Pages: 3 pages
Date: 2021-03
New Economics Papers: this item is included in nep-big and nep-ias
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iimk.ac.in/websiteadmin/FacultyPublication ... _FIN_202101.pdf?t=45 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iik:wpaper:431

Access Statistics for this paper

More papers in Working papers from Indian Institute of Management Kozhikode IIMK Campus PO, Kunnamanagalam, Kozhikode, Kerala, India -673570. Contact information at EDIRC.
Bibliographic data for series maintained by Sudheesh Kumar ().