Media Coverage of Corporate Social Irresponsibility and Firm value: The Moderating Role of CSR Contracting

This study investigates the role of CSR contracting in the relationship between negative media coverage of corporate social irresponsibility (CSiR) and firm value. By analyzing firms from 44 countries spanning the period 2003-2016, we find that media coverage of CSiR motivates firms to employ CSR contracting as a means of restoring their reputation, which in turn, leads to increased levels of CSR engagement and higher firm value. These findings align with theoretical arguments suggesting that CSR contracting can serve as an effective mechanism for improving a firm's CSR reputation, thus enabling them to remedy damage caused by media coverage of CSiR and boost firm value.