Keywords

rankings, status, reputation, regression discontinuity, corporate social responsibility

Abstract

Despite the proliferation of lists and rankings that recognize firms for superior performance, empirical studies have been limited in their ability to causally evaluate how inclusion for the marginal firm influences shareholder value. Using a regression discontinuity design, we address this limitation by examining how investors responded to firms that were just barely included or excluded from the 100 Best Corporate Citizens list. Contrary to prevailing theoretical expectations, our findings indicate that marginal firms that were included in the ranking experienced negative abnormal returns compared to marginal firms that were excluded. We discuss how these findings inspire future research on rankings and status and highlight implications for managers considering strategic decisions related to pursuing rankings.

Document Type

Working Paper

Publication Date

2018

Permanent URL

http://hdl.lib.byu.edu/1877/4023

Language

English

College

Marriott School of Management

Department

Management

University Standing at Time of Publication

Assistant Professor

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