TY - JOUR
T1 - Anti-market sentiment and corporate social responsibility
T2 - Evidence from anti-Jewish pogroms
AU - Liu, Xianda
AU - Hou, Wenxuan
AU - Main, Brian GM
N1 - Publisher Copyright:
© 2022
PY - 2022/10
Y1 - 2022/10
N2 - This paper examines the impact of anti-market culture on a firm’s environmental and social (E&S) outcomes. We use the varying degree of intensity of historical anti-Jewish pogroms in 20 European countries as a quasi-exogenous measure of anti-market sentiment. We show that the historical occurrence of anti-Jewish pogroms in Eastern Europe during the period 1800-1927 generated an enduring anti-market sentiment that continues to influence the E&S performance of present-day firms. This relationship is more pronounced for firms with better corporate governance, which rejects the bad governance view on corporate social responsibilities. Taken together, our results add new evidence in support of the view that corporate social responsibility is responsive to institutional differences and may reflect the presence of an anti-market ideology that has historical roots.
AB - This paper examines the impact of anti-market culture on a firm’s environmental and social (E&S) outcomes. We use the varying degree of intensity of historical anti-Jewish pogroms in 20 European countries as a quasi-exogenous measure of anti-market sentiment. We show that the historical occurrence of anti-Jewish pogroms in Eastern Europe during the period 1800-1927 generated an enduring anti-market sentiment that continues to influence the E&S performance of present-day firms. This relationship is more pronounced for firms with better corporate governance, which rejects the bad governance view on corporate social responsibilities. Taken together, our results add new evidence in support of the view that corporate social responsibility is responsive to institutional differences and may reflect the presence of an anti-market ideology that has historical roots.
KW - corporate social responsibility
KW - pogroms
KW - Jews
KW - social norms
UR - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4176262
UR - https://www.sciencedirect.com/journal/journal-of-corporate-finance
U2 - 10.1016/j.jcorpfin.2022.102260
DO - 10.1016/j.jcorpfin.2022.102260
M3 - Article
SN - 0929-1199
VL - 76
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
M1 - 102260
ER -