Organization and Strategy Seminar(2019-05)
Topic: Dare to Be Different? Conformity vs. Differentiation in Corporate Social Activities of Chinese Firms and Market Responses
Speaker: Yanlong Zhang,Peking University
Time: Tuesday, 14 May, 10:00-11:30 am
Location: Room 213, Guanghua Building 2
Abstract:
Building on the literature on optimal distinctiveness, this study explores the effects of conformity and differentiation in corporate social responsibility (CSR) practices on the evaluations by security analysts and the responses of the financial market in general. We develop the argument that while conformity in CSR scope enhances analyst coverage, differentiation in CSR emphasis leads to more- favorable analyst recommendations and higher market value. This suggests that firms may be able to simultaneously conform in CSR scope and differentiate in CSR emphasis to achieve optimal distinctiveness. To further enhance our understanding of the variation in the relationship between conformity/differentiation and the response of analysts and the market, we investigate how some firm- and analyst-level factors moderate this relationship. Using the case of corporate social activities of Chinese listed firms during the period from 2008 to 2014, we show that scope conformity has a stronger effect on analyst coverage for state-owned firms and firms with higher visibility; on the other hand, the relationship between emphasis differentiation and analyst recommendation/market value strengthens for firms covered by high-status brokerage houses but weakens for those experiencing high earnings pressure.
Introduction:

Yanlong Zhang is an Associate Professor of organization and strategy management and the Executive Director of the MBA and MSEM program at Guanghua School of Management at Peking University. He received his BA and MA in sociology from Peking University in 2002 and 2005, and received his Ph.D. in sociology from Duke University in 2012. His research interests include organization theory, social networks and social capital, corporate social responsibility, entrepreneurship, and policy diffusion. He published over twenty articles in leading sociology and management journals such as Academy of Management Annals, Journal of Business Venturing, Social Networks, Human Resource Management, and Management and Organization Review. His book Management and Organizations in Transitional China was published at New York by Routledge in 2016. He received Peking University Teaching Excellence Award in 2016; and in the same year received the Brand English Language Course Award from the Ministry of Education.
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