Media, Partisan Ideology, and Corporate Social Responsibility

62 Pages Posted: 4 Aug 2020 Last revised: 17 Aug 2022

See all articles by Mahsa Kaviani

Mahsa Kaviani

University of Delaware

Lily Li

Villanova University

Hosein Maleki

Florida State University - College of Business

Date Written: March 1, 2021

Abstract

We study the effect of partisan media on firms' corporate social responsibility using the staggered expansion of Sinclair Broadcast Group: the largest conservative network in the U.S. local TV markets. CSR ratings decline in all dimensions: environmental, social, and governance. The effect runs through two mutually non-exclusive channels: change in local ideology and reduction in local coverage. We provide evidence consistent with the first channel based on public opinion surveys, election results, and firms' political contributions. Consistent with the second channel, the effect is larger for firms with higher customer awareness, low institutional ownership, in sin industries, and Sinclair-dominated markets.

Keywords: corporate social responsibility, partisan media, political ideology

JEL Classification: G34, D72, L82, M14

Suggested Citation

Kaviani, Mahsa and Li, Lily Yuanzhi and Maleki, Hosein, Media, Partisan Ideology, and Corporate Social Responsibility (March 1, 2021). Available at SSRN: https://ssrn.com/abstract=3658502 or http://dx.doi.org/10.2139/ssrn.3658502

Mahsa Kaviani

University of Delaware ( email )

20 Orchard Rd, Newark, DE
Newark, DE 19716
United States

Lily Yuanzhi Li

Villanova University ( email )

United States

Hosein Maleki (Contact Author)

Florida State University - College of Business ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

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