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This study aims to outline the role of causal attributions in consumer responses to irresponsible corporate behaviour. Specifically, this paper presents a moderated mediation model that explains how four types of perceived motives behind an irresponsible action shape corporate blame and word-of-mouth recommendations.

To test the hypotheses, the study uses data from a large survey assessing consumer reactions to a real case of corporate socially irresponsible behaviour in the banking industry.

The findings show that market-, unethicality- and rogue employee-driven attributions increase corporate blame and subsequently make people more likely to spread negative comments regarding the culprit. The difficult situation of a bank, as a perceived reason for wrongdoing, does not reduce the blame attributed to the irresponsible organisation.

The literature offers little information on the attributions people make following egregious corporate behaviour; however, such cognitions can play an important role in stakeholders’ reactions to wrongdoing. This study therefore extends the understanding of how irresponsibility attributions affect consumers’ responses to misbehaviour. Given the empirical context, the findings might be particularly important for communication and bank managers.

This paper examines the short-term market impact of the beginning of the military conflict between Russia and Ukraine (February 24, 2022) on the world’s largest defense firms.

The authors examine the world’s 100 largest listed defense firms at and around the beginning of the military conflict between Russia and Ukraine using an event-study methodology.

We observe a positive and statistically significant stock price reaction at and around the beginning of the military conflict. These results are consistent with the asset-pricing perspective/expected cash flow hypothesis. Consistent with the captured regulator theory, we find superior market returns for the two portfolios with a greater weight of defense sales. Superior market returns are also found for defense firms with higher R&D and capital expenditure intensity. Finally, these reactions are reinforced or mitigated by other firm-specific characteristics such as size, profitability and institutional ownership.

The effect of the war on stock markets has been relatively little examined in the financial theory. This study intends to fill this gap in the literature.