Materiality in the CSR-investor reaction realtionship: A replication and extension of Flammer (2013)
Keywords
corporate social responsibility, materiality, event study, environment, replication
Abstract
We replicate and extend Flammer’s (2013) event study of investor reaction to environmental corporate social responsibility (CSR). Flammer found that investors reacted positively to eco-friendly events and negatively to eco-harmful events from 1980-2009 and that reaction to positive events decreased while reaction to negative events increased over time. We find similar results for Flamer’s original sample and an expanded sample including the same type of firms (U.S.-listed public firms) from 1980-2019. We then extend Flammer’s results by examining how materiality affects investor reaction over time. We find that investors only react to material events and that positive reaction to material eco-friendly events diminishes over time, while negative reaction to material eco-harmful events increases over time, suggesting that materiality is a key factor driving Flammer’s results.
BYU ScholarsArchive Citation
Kofford, Steven D.; Melancon, Myles; and Lewis, Ben W., "Materiality in the CSR-investor reaction realtionship: A replication and extension of Flammer (2013)" (2025). Faculty Publications. 7479.
https://scholarsarchive.byu.edu/facpub/7479
Document Type
Working Paper
Publication Date
2025-02-24
Language
English
College
Marriott School of Business
Department
Management
Copyright Use Information
https://lib.byu.edu/about/copyright/
