Information Exposure and Corporate Citizenship

Lisa Yao Liu and Shirley Lu

No 312, Working Papers from The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State

Abstract: We explore how information exposure, specifically information transmission within organizations, facilitates companies' roles as corporate citizens. We study whether US firms' business networks with China and Italy become their information advantage, and examine whether firms use relevant information to mitigate the negative shocks of COVID-19. We start by validating our measurement of information exposure. Next, we find that a higher number of work-from-home ("WFH") policies, as evidenced by a higher stay-at-home ratio, are implemented in areas with more information-exposure companies, even before local governments impose a lockdown. To further demonstrate corporate citizenship, we document firms' positive social impact-lower COVID-19 growth and an influence on other firms' WFH policies-and show suggestive evidence on firms' social motives.

Keywords: Information exposure; information transmission; business networks; COVID; corporate citizenship (search for similar items in EconPapers)
JEL-codes: D83 D85 G3 M14 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cna
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cbscwp:312

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