Keywords

rankings, financial performance, corporate social responsibility, reputation, regression discontinuity

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. Our findings indicate that marginal firms that were included experience negative abnormal returns compared to marginal firms that were excluded. We highlight new areas of inquiry for scholarship on rankings and provide a more nuanced perspective on the relationship between CSR initiatives and firm value. We also discuss implications for managers that desire to compete for inclusion on these ranked lists.

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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