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Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China

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  • Kong, Dongmin
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    Abstract

    Using 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 Info

    Article provided by Elsevier in its journal Food Policy.

    Volume (Year): 37 (2012)
    Issue (Month): 3 ()
    Pages: 323-334

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    Handle: RePEc:eee:jfpoli:v:37:y:2012:i:3:p:323-334

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    Web page: http://www.elsevier.com/locate/foodpol

    Related research

    Keywords: Food industry; Corporate social responsibility; Event study; Investors’ behaviors; Emerging markets;

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    Cited by:
    1. Dai, Yunhao & Kong, Dongmin & Wang, Maobin, 2013. "Investor reactions to food safety incidents: Evidence from the Chinese milk industry2We thank Colin Poulton (Managing Editor), two anonymous referees, Martin Qiu, Shasha Liu, and Yan Sheng for helpful," Food Policy, Elsevier, vol. 43(C), pages 23-31.

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