Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China
AbstractUsing the melamine contamination incident in China as an exogenous shock, this paper studies how the investors respond to corporate social responsibilities (CSRs) of listed firms in food industry. We find that investors’ or consumers’ concerns for CSR in the food industry could be significantly influenced by the mounting attention given to CSR-related events. This study offers important policy implications. First, the government, as well as supervisors, should release appropriate policies to improve various firms’ activities on CSR, especially in the food industry. Second, firms, particularly those in the food industry, can obtain long-term benefits by strengthening their CSR-related activities.
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Bibliographic InfoArticle provided by Elsevier in its journal Food Policy.
Volume (Year): 37 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/foodpol
Food industry; Corporate social responsibility; Event study; Investors’ behaviors; Emerging markets;
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