Exploring the relationship between corporate responsibility and firm performance from a social media perspective
ISSN: 1747-1117
Article publication date: 4 December 2018
Issue publication date: 3 May 2019
Abstract
Purpose
Corporate responsibility perceptions from stakeholders are becoming more difficult to manage. This is in part because of large amount of social media being projected to stakeholders on a daily basis. In light of this, the purpose of this paper is to examine the relationship between corporate responsibility framing from the social media perspective firm’s performance as defined by abnormal-return (defined as the difference between a single stock or portfolios return and the expected return) and idiosyncratic-risk (defined as the risk of a particular investment because of firm-specific characteristics).
Design/methodology/approach
Hypotheses are developed through agenda-setting theory and stakeholder and shareholder viewpoints. The research model is tested using sentiment analysis from a collection of social media from several industries.
Findings
The results provide support that three corporate responsibility social media categories (economic, social and environmental-framing) will have different impacts (delayed, immediate) on abnormal-return and idiosyncratic-risk. This study finds differences between immediate (one-day lag) and delayed (three-day lag) associations on abnormal-return and idiosyncratic-risk.
Originality/value
This study also suggests differences between the amount and sentiment of corporate responsibility social media framing on abnormal-return and idiosyncratic-risk. Finally, results identify interaction effects between different corporate responsibility social media categories.
Keywords
Acknowledgements
Conflict of interest: There is no conflict of interest or support from a third party for this study. Marc J. Schniederjans is deceased.
Citation
Cao, R.Q., Schniederjans, D.G., Gu, V.C. and Schniederjans, M.J. (2019), "Exploring the relationship between corporate responsibility and firm performance from a social media perspective", Social Responsibility Journal, Vol. 15 No. 3, pp. 296-317. https://doi.org/10.1108/SRJ-09-2017-0176
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited