The general public can be a stakeholder in a firm, even when it does not have direct ownership. And as the public becomes more vested in a firm’s actions, the firm may be more likely to engage in corporate social responsibility (CSR) activities.
In a recent paper, we use public visibility as a proxy for the public’s stake in a firm. Based on 3,400 newspapers from 1994 to 2008, we measure visibility for the U.S. S&P 500 firms with the frequency of print articles per year concerning the firm. We find that visibility has a significant, positive relationship with the … Read more