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| Author: | Chatterji, A. K. Toffel, M. W. |
| Title: | How firms respond to being rated |
| Journal: | Strategic Management Journal
2010 : SEP, VOL 31:9, p. 917-945 |
| Index terms: | organizational behaviour company performance company ranking |
| Language: | eng |
| Abstract: | This article aims at studying the impact of ratings on the companies being rated. Several hundred firms' responses to corporate environmental ratings recommending investors to choose to invest in socially responsible companies rather than socially irresponsible ones, are examined. It is found that the companies that received poor ratings are more likely to improve their environmental performance after the rating, than companies that receive good ratings. This study is one of the first one to address the effect of ratings in company behaviour and performance. |
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