rankings, financial performance, corporate social responsibility, reputation, regression discontinuity
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.
BYU ScholarsArchive Citation
Lewis, Ben William and Carlos, W. Chad, "Play to Win or Don't Play at all: The Financial Returns to Making the Cut" (2018). All Faculty Publications. 2064.
Marriott School of Management
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