Negative performance feedback and firms’ CSR strategy selection: Conformity or differentiation?

Sailin Zhu and Xin Zhang

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: Drawing on the behavioral theory of the firm (BTOF), studies debate about whether underperforming firms will engage in more corporate social responsibility (CSR). In this study, we categorize CSR into CSR conformity and CSR differentiation, and find that underperforming firms are more likely to increase CSR conformity but decrease CSR differentiation. Furthermore, market strategy deviation strengthens the positive effect of negative performance feedback on CSR conformity and the negative effect on CSR differentiation. This study sheds new light on the debate over the relationship between negative performance feedback and CSR.

Keywords: CSR conformity; CSR differentiation; Negative performance feedback (search for similar items in EconPapers)
JEL-codes: G30 M14 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324011280
Full text for ScienceDirect subscribers only

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:eee:finlet:v:69:y:2024:i:pa:s1544612324011280

DOI: 10.1016/j.frl.2024.106099

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().