Showing 1 - 10 of 30
When stakeholder protection is left to the voluntary initiative of managers, relations with social activists may become an effective entrenchment strategy for inefficient CEOs. We thus argue that managerial turnover and firm value are increased by the institutionalization of stakeholder...
Persistent link: https://www.econbiz.de/10005504332
We study the extent to which a firm’s social capital, as measured by the intensity of a firm’s corporate social responsibility (CSR) activities, affects firm performance during the 2008-2009 financial crisis. We find that high-CSR firms have crisis-period stock returns that are four to five...
Persistent link: https://www.econbiz.de/10011165644
We study the relationship between employee satisfaction and abnormal stock returns around the world, using lists of the “Best Companies to Work For” in 14 countries. We show that employee satisfaction is associated with positive abnormal returns in countries with high labor market...
Persistent link: https://www.econbiz.de/10011083605
This paper presents an industry equilibrium model where firms can choose to engage in corporate social responsibility (CSR) activities. We model CSR activities as an investment in customer loyalty and show that CSR decreases systematic risk and increases firm value. These effects are stronger...
Persistent link: https://www.econbiz.de/10011083749
Researchers debate whether environmental investments reduce firm value or can actually improve financial performance. We provide some first evidence on shareholder wealth effects of voluntary corporate environmental initiatives. Companies announcing membership in Climate Leaders and Ceres - two...
Persistent link: https://www.econbiz.de/10005662265
Models of shrouding predict that firms lack incentives to compete on add-on prices. Working with a large Turkish bank to test SMS direct marketing promotions to 108,000 existing checking account holders, we find that messages promoting a large discount on the overdraft interest rate reduce...
Persistent link: https://www.econbiz.de/10011168904
This paper examines incentives for exclusive distribution of content in the presence of advertising. A monopoly seller …-maximising choice, even when distributors also sell advertising airtime. When distributors are purely advertising-funded, however, non …-exclusive contracting may instead be preferred. Advertising revenues accruing directly to the content provider may also generate a …
Persistent link: https://www.econbiz.de/10011083559
We extend the persuasion game to bring it squarely into the economics of advertising. We model advertising as exciting … consumer interest into learning more about the product, and determine a firm's equilibrium choice of advertising content over … quality information, price information, and horizontal match information. Equilibrium is unique whenever advertising is …
Persistent link: https://www.econbiz.de/10011083652
Restricting advertising is one way governments seek to reduce consumption of potentially harmful goods. There have been … increasing calls to apply a similar policy to the junk food market. The effect will depend on how brand advertising influences … dynamic oligopoly supply in which multi-product firms compete in prices and advertising budgets. We model the impact of …
Persistent link: https://www.econbiz.de/10011084037
This paper examines the impact of exposure to foreign media on the economic behavior of agents in a totalitarian regime. We study private consumption choices focusing on former East Germany, where differential access to Western television was determined by geographic features. Using data...
Persistent link: https://www.econbiz.de/10011084275