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Examining the relationship between negative media coverage and corporate social responsibility

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  • Xin Pan
  • Xuanjin Chen
  • Xue Yang

Abstract

This study investigates the relationship between negative media coverage and corporate social responsibility (CSR). We suggest that CSR can compensate for the loss of legitimacy in a firm only when it receives negative media coverage of a given magnitude. Using a sample of Chinese listed firms, the results suggest that in relation to CSR, negative media coverage has an inverted U‐shaped curve. When we explore two industrial‐level boundary conditions, we find that this nonlinear relationship is more pronounced in firms with higher industrial concentration and dynamism. The results are robust after controlling for endogeneity. This study contributes to CSR and communication literature by deepening our understanding of the nonlinear impact of negative media coverage on firms.

Suggested Citation

  • Xin Pan & Xuanjin Chen & Xue Yang, 2022. "Examining the relationship between negative media coverage and corporate social responsibility," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 31(3), pages 620-633, July.
    • Handle: RePEc:wly:buseth:v:31:y:2022:i:3:p:620-633
    DOI: 10.1111/beer.12430
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