本論文透過監管處罰的視角，探討企業社會不負責任行為（Corporate Social Irresponsibility, CSI）所帶來的財務後果。研究以《Violation Tracker Global》資料庫中 660 筆企業層級違規事件為樣本，並結合市值與股價資料，檢驗監管罰款的金額是否能夠預測企業的短期異常報酬及長期企業價值。研究採用普通最小平方法（Ordinary Least Squares, OLS）迴歸分析，以罰款金額作為主要自變項，並將顧客接觸程度及地區監管強度納入為調節變項。此外，計算交互作用項以檢驗調節效果，並將違規嚴重程度納入作為共變項。

研究結果顯示，罰款金額對短期異常報酬並無顯著預測效果，顯示市場在監管處罰公告後並未立即重新評價企業價值。然而，六個月後的市值分析結果指出，罰款金額與企業價值之間的關係具有條件性：在高監管強度的環境中，大額罰款與較高的企業市值呈正相關，符合「合法性恢復」的效果；但在監管較弱的環境中，罰款則會導致企業價值受損。此外，研究亦發現高顧客接觸程度的企業，其長期價值損失更為顯著。綜上所述，本研究強調制度與利害關係人情境對市場如何回應企業社會不負責任事件具有關鍵影響。

This thesis investigates the financial consequences of corporate social irresponsibility (CSI) through the lens of regulatory penalties. Using a dataset of 660 firm-level violations drawn from Violation Tracker Global and matched with market capitalization and stock price data, the study examines whether the size of regulatory penalties predicts short-term abnormal stock returns and longer-term firm value. Ordinary least squares (OLS) regression analyses were conducted, with penalty size as the primary independent variable, with customer exposure and regional regulatory strength included as moderators. Interaction terms were computed to test moderation effects, and offense severity was included as a covariate.
Results indicate that penalty size does not significantly predict short-term abnormal returns, suggesting that markets do not systematically reprice firm value immediately following penalty announcements. However, six-month market capitalization analyses reveal that the relationship between penalty size and firm value is conditional: in high-regulation environments, large penalties are associated with higher market capitalization, consistent with legitimacy-restoring effects, while in weaker regulatory environments, penalties are value-destructive. Findings further suggest that firms with high customer exposure experience greater long-term value loss. These results highlight the importance of institutional and stakeholder context in shaping the market’s response to CSI events.

Table of Contents
Validation Letter i
摘要 ii
Abstract iii
Table of Contents iv
List of Figures vi
List of Tables vi
1. Introduction 1
2. Literature Review 5
2.1 Defining Corporate Social Irresponsibility 6
2.2 Conceptual Approach to Understanding CSI 7
2.2a Intention-Based Perspective 7
2.2b Consequence-Based Perspective 8
2.2c Attribution-Based Perspective 9
2.3 Theoretical Background 10
2.4 Short-Term Impacts on Firm Performance 11
2.5 Long-Term Impacts on Firm Performance 12
2.6 Financial Penalties and the Cost of CSI 14
2.7 Moderating Factors 15
2.7a Stakeholder Characteristics: 16
2.7b Industry and Competitive Context: 16
2.7c Geographic and Institutional Context: 17
2.7d Corporate Governance and Response: 17
2.8 Hypothesis Development 20
2.8a Direct Effects of Penalty Size 20
2.8b Moderating Role of Customer Exposure 21
2.8c Moderating Role of Regional Regulatory Strength 22
2.8d Control Variable: Offense Severity 23
3. Methodology 26
3.1 Acquiring the Dataset 26
3.2 Tracking Stock Prices 27
3.3 Market Cap 28
3.4 Industry Categorization 29
3.5 Region Regulation Score 32
3.6 Categorical Severity of Fines 33
4. Analysis and Results 36
4.1 Descriptive Statistics 36
4.2 Correlation Tables 37
4.3 Statistical Models 38
4.3a Model 1 (Base Model): 39
4.3b Model 2 (Customer Exposure Moderation): 39
4.3c Model 3 (Regulatory Strength Moderation): 39
4.3d Model 4 (Full Model): 39
4.4 Short Term Stock Price Performance (Short Term Measurement Tool) 40
4.5 Market Capitalization at Time of Penalty 41
4.6 Market Capitalization Six Months After Penalty (Long Term Measurement Tool) 42
4.7 Summary of Hypotheses Testing 44
4.8 Summary of Findings 46
5. Conclusion 48
5.1 Theoretical Contributions 49
5.2 Managerial Implications 49
5.3 Policy Implications 50
5.4 Limitations 52
5.4a Prior CSR Reputation 52
5.4b Media Coverage and Publicity 52
5.4c Publicly Listed Companies 53
5.4d Time Period 53
5.5 Future Research 53
References 55

References
Arlen, J. (2012). Corporate criminal liability: Theory and evidence. Research Handbook on the Economics of Criminal Law, A. Harel & K. Hylton, eds., Edward Elgar (2012), NYU Law and Economics Research Paper, (11-25).
Armour, J., Mayer, C., & Polo, A. (2017). Regulatory sanctions and reputational damage in financial markets. Journal of Financial and Quantitative Analysis, 52(4), 1429-1448.
Armstrong, J.S. (1977), “Social irresponsibility in management”, Journal of Business Research, Vol. 5 No. 3, pp. 185-213.
AZAM, A., & Siddiqui, D. A. (2021). With Great Power Comes Great Irresponsibility: Effect of The Corporate Social Irresponsibility Perception on CSR, Organization Commitment, Corporate Citizenship, and Work Motivation: The complementary role of Moral, and Organization Identification. Organization Commitment, Corporate Citizenship, and Work Motivation: The complementary role of Moral, and Organization Identification (October 13, 2021).
Baek, W. Y., Byon, K. K., Choi, Y. H., & Park, C. W. (2017). Millennial consumers' perception of sportswear brand globalness impacts purchase intention in cause-related product marketing. Social Behavior and Personality: an international journal, 45(8), 1319-1335.
Barkemeyer, R., Preuss, L., & Lee, L. (2015, December). Corporate reporting on corruption: An international comparison. In Accounting Forum (Vol. 39, No. 4, pp. 349-365). No longer published by Elsevier.
Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of management review, 32(3), 794-816.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
Baucus, M. S., & Baucus, D. A. (1997). Paying the piper: An empirical examination of longer-term financial consequences of illegal corporate behavior. Academy of Management Journal, 40(1), 129–151.
Baucus, M. S., & Near, J. P. (1991). Can illegal corporate behavior be predicted? An event history analysis. Academy of management Journal, 34(1), 9-36.
Beugelsdijk, S., & Welzel, C. (2018). Dimensions and Dynamics of National Culture: Synthesizing Hofstede With Inglehart. Journal of Cross-Cultural Psychology, 49(10), 1469-1505.
Biscaia, R., Trail, G., Ross, S., & Yoshida, M. (2017). A model bridging team brand experience and sponsorship brand experience. International Journal of Sports Marketing and Sponsorship, 18(4), 380-399.
Boritz, J. E., & No, W. G. (2020). How significant are the differences in financial data provided by key data sources? A comparison of XBRL, Compustat, Yahoo! Finance, and Google Finance. Journal of Information Systems, 34(3), 47-75.
Brammer, S., & Pavelin, S. (2004). Building a good reputation. European Management Journal, 22(6), 704-713.
Brans, H., & Scholtens, B. (2020). Under his thumb the effect of president Donald Trump’s Twitter messages on the US stock market. PloS one, 15(3), e0229931.
Buccirossi, P., Ciari, L., Duso, T., Spagnolo, G., & Vitale, C. (2013). Competition policy and productivity growth: An empirical assessment. Review of Economics and Statistics, 95(4), 1324-1336.
Butler, H. N., & Johnston, J. S. (2009). Consumer Harm Acts? An Economic Analysis of Private Actions Under State Consumer Protection Acts.
Campbell, J. Y., Lo, A. W., MacKinlay, A. C., & Whitelaw, R. F. (1998). The econometrics of financial markets. Macroeconomic Dynamics, 2(4), 559-562.
Capelle-Blancard, G., & Laguna, M. A. (2010). How does the stock market respond to chemical disasters?. Journal of Environmental Economics and Management, 59(2), 192-205.
Chiu, S. C., & Sharfman, M. (2018). Corporate social irresponsibility and executive succession: An empirical examination. Journal of Business Ethics, 149(3), 707-723.
Clark, C. E., Riera, M., & Iborra, M. (2022). Toward a theoretical framework of corporate social irresponsibility: Clarifying the gray zones between responsibility and irresponsibility. Business & Society, 61(6), 1473-1511.
Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of management, 37(1), 39-67.
Corporate Research Project of Good Jobs First. (n.d.). Violation tracker global. Violation Tracker Global. https://violationtrackerglobal.goodjobsfirst.org/
Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. John Wiley & Sons.
Davidson, W. N., Worrell, D. L., & Lee, C. I. (1994). Stock market reactions to announced corporate illegalities. Journal of Business Ethics, 13(12), 979–987.
Desai, H., Hogan, C. E., & Wilkins, M. S. (2006). The reputational penalty for aggressive accounting: Earnings restatements and management turnover. The Accounting Review, 81(1), 83-112.
Fama, E. F. (1991). Efficient capital markets: II. The Journal of Finance, 46(5), 1575–1617.
Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management journal, 56(3), 758-781.
Fombrun, C., & Shanley, M. (1990). What's in a name? Reputation building and corporate strategy. Academy of management Journal, 33(2), 233-258.
Fombrun, C. J., Gardberg, N. A., & Barnett, M. L. (2000). Opportunity platforms and safety nets: Corporate citizenship and reputational risk.
Fourati, Y. M., & Dammak, M. (2021). Corporate social responsibility and financial performance: International evidence of the mediating role of reputation. Corporate Social Responsibility and Environmental Management, 28(6), 1749-1759.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.
Gelman, A., & Hill, J. (2006). Data Analysis Using Regression and Multilevel/Hierarchical Models. Cambridge: Cambridge University Press.
Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of management review, 30(4), 777-798.
Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic management journal, 30(4), 425-445.
Grappi, S., Romani, S., & Bagozzi, R. P. (2013). Consumer response to corporate irresponsible behavior: Moral emotions and virtues. Journal of Business Research, 66(10), 1814–1821.
Huang, X., & Hinze, J. (2006). Owner’s role in construction safety. Journal of construction engineering and management, 132(2), 164-173.
Iborra, M., & Riera, M. (2023). Corporate social irresponsibility: What we know and what we need to know. Corporate social responsibility and environmental management, 30(3), 1421-1439.
Ichev R (2023) Reported corporate misconducts: The impact on the financial markets. PLoS ONE 18(2): e0276637.
Ioannou, I., & Serafeim, G. (2012). What drives corporate social performance? The role of nation-level institutions. Journal of international business studies, 43(9), 834-864.
Jackson, G., & Apostolakou, A. (2010). Corporate social responsibility in Western Europe: an institutional mirror or substitute?. Journal of business ethics, 94(3), 371-394.
Jarrell, G., & Peltzman, S. (1985). The impact of product recalls on the wealth of sellers. Journal of Political Economy, 93(3), 512-536.
Jasinenko, I., Frank, B., Enke, M., & Baran, T. (2020). Justified by ideology: Why conservatives care less about corporate social irresponsibility. Journal of Business Research, 114, 290–303.
Jo, H., & Na, H. (2012). Does CSR reduce firm risk? Evidence from controversial industry sectors. Journal of business ethics, 110(4), 441-456.
Jones, B., Bowd, R., & Tench, R. (2009). Corporate irresponsibility and corporate social responsibility: competing realities. Social Responsibility Journal, 5(3), 300-310.
Jones, D. A. (2013). Corporate social irresponsibility. In Encyclopedia of Corporate Social Responsibility (pp. 650–655). Springer.
Jones, T. M., Felps, W., & Bigley, G. A. (2007). Ethical theory and stakeholder-related decisions: The role of stakeholder culture. Academy of management review, 32(1), 137-155.
Kang, J. (2013). The relationship between corporate diversification and corporate social performance. Strategic Management Journal, 34(1), 94-109.
Kang, C., Germann, F., & Grewal, R. (2016). Washing away your sins? Corporate social responsibility, corporate social irresponsibility, and firm performance. Journal of marketing, 80(2), 59-79.
Kang, T., & Matsuoka, H. (2023). The negative effect of CSR-CSI domain overlap in CSR-linked sport sponsorship. Journal of Business Research, 156, 113527.
Karpoff, J. M., Lee, D. S., & Martin, G. S. (2008). The consequences to managers for financial misrepresentation. Journal of Financial Economics, 88(2), 193-215.
Karpoff, J. M., Lee, D. S., & Martin, G. S. (2008). The cost to firms of cooking the books. Journal of Financial and Quantitative Analysis, 43(3), 581–611.
Karpoff, J. M., & Lott Jr, J. R. (1993). The reputational penalty firms bear from committing criminal fraud. The Journal of Law and Economics, 36(2), 757-802.
Karpoff, J. M., Lott, Jr, J. R., & Wehrly, E. W. (2005). The reputational penalties for environmental violations: Empirical evidence. The Journal of Law and Economics, 48(2), 653-675.
Kass, N. E. (2001). An ethics framework for public health. American journal of public health, 91(11), 1776-1782.
Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo. (2010). The Worldwide Governance Indicators: Methodology and Analytical Issues. World Bank, Working Paper Series 5430. 3. 10.1017/S1876404511200046.
Kölbel, J. F., Busch, T., & Jancso, L. M. (2017). How media coverage of corporate social irresponsibility increases financial risk. Strategic Management Journal, 38(11), 2266-2284.
Konar, S., & Cohen, M. A. (2001). Does the market value environmental performance?. Review of economics and statistics, 83(2), 281-289.
Kotchen, M. and Moon, J.J. (2012), “Corporate social responsibility for irresponsibility”, The B.E. Journal of Economic Analysis & Policy, Vol. 12 No. 1, Article 55, doi: 10.1515/1935-1682.3308.
Kothari, S. P., & Warner, J. B. (2007). Econometrics of event studies. In Handbook of empirical corporate finance (pp. 3-36). Elsevier.
Lambsdorff, J. G. (2006). The methodology of the corruption perceptions index 2006. Transparency International & University of Passau.
Lange, D., & Washburn, N. T. (2012). Understanding attributions of corporate social irresponsibility. Academy of management review, 37(2), 300-326.
Lenz, M., Wetzel, H., & Hammerschmidt, M. (2017). Can doing good lead to doing poorly? Firm value implications of CSR in the face of CSI. Journal of the Academy of Marketing Science, 45(5), 677–697.
Little, R. J., & Rubin, D. B. (2019). Statistical analysis with missing data. John Wiley & Sons.
Lux, S., Crook, T. R., & Woehr, D. J. (2011). Mixing business with politics: A meta-analysis of the antecedents and outcomes of corporate political activity. Journal of management, 37(1), 223-247.
Marquis, C., Toffel, M. W., & Zhou, Y. (2016). Scrutiny, norms, and selective disclosure: A global study of greenwashing. Organization science, 27(2), 483-504.
Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of management Review, 33(2), 404-424.
Minor, D., & Morgan, J. (2011). CSR as reputation insurance: Primum non nocere. California management review, 53(3), 40-59.
Mohtsham Saeed, M., & Arshad, F. (2012). Corporate social responsibility as a source of competitive advantage: The mediating role of social capital and reputational capital. Journal of Database Marketing & Customer Strategy Management, 19(4), 219-232.
Murphy, D. L., Shrieves, R. E., & Tibbs, S. L. (2009). Understanding the penalties associated with corporate misconduct: An empirical examination of earnings and risk. Journal of Financial and Quantitative Analysis, 44(1), 55-83.
Nardella, G., Brusset, X., & Stekelorum, R. (2020). Shame on who? The effects of corporate irresponsibility and social performance on organizational reputation. British Journal of Management, 31(1), 5–23.
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge university press.
Permata, I. S., & Alkaf, F. T. (2020). Analysis of market capitalization and fundamental factors on firm value. Journal of Accounting and Finance Management, 1(2), 59-67.
Pfarrer, M. D., Decelles, K. A., Smith, K. G., & Taylor, M. S. (2008). After the fall: Reintegrating the corrupt organization. Academy of Management Review, 33(3), 730-749.
Price, J. M., & Sun, W. (2017). Doing good and doing bad: The impact of corporate social responsibility and irresponsibility on firm performance. Journal of Business Research, 80, 82–97.
Pruitt, S. W., & Peterson, D. R. (1986). Security price reactions around product recall announcements. Journal of Financial Research, 9(2), 113-122.
Raghunandan, A. (2021). Financial misconduct and employee mistreatment: Evidence from wage theft. Review of Accounting Studies, 26(3), 867-905.
Rhee, M., & Haunschild, P. R. (2006). The liability of good reputation: A study of product recalls in the US automobile industry. Organization science, 17(1), 101-117.
Rhee, M., & Valdez, M. E. (2009). Contextual factors surrounding reputation damage with potential implications for reputation repair. Academy of Management Review, 34(1), 146-168.
Riera, M., & Iborra, M. (2017). Corporate social irresponsibility: Review and conceptual boundaries. European Journal of Management and Business Economics, 26(2), 146-162.
Saunders, M. N., Lewis, P., & Thornhill, A. (2019). Research methods for business students (Eighth). Harlow: Pearson education limited.
Schivinski, B., & Dabrowski, D. (2016). The effect of social media communication on consumer perceptions of brands. Journal of Marketing Communications, 22(2), 189-214.
Schröder-Bäck, P., Duncan, P., Sherlaw, W., Brall, C., & Czabanowska, K. (2014). Teaching seven principles for public health ethics: towards a curriculum for a short course on ethics in public health programmes. BMC medical ethics, 15(1), 73.
Scott, W. R. (1995). Institutions and organizations (Vol. 2). Thousand Oaks, CA: sage.
Snow D.A., & Benford, R.D. (1988). Ideology, frame resonance and participant mobilization. In B. Klandermans, H. Kriesi, & S. Toarrow (Eds.), International social movement research, vol. 1: 197-218. Greenwich, CT: JAI Press.
Song, C., & Han, S. H. (2017). Stock market reaction to corporate crime: Evidence from South Korea. Journal of Business Ethics, 143(2), 323–351.
Spence, M. (1978). Job market signaling. In Uncertainty in economics (pp. 281-306). Academic Press.
Strike, V. M., Gao, J., & Bansal, P. (2006). Being good while being bad: Social responsibility and the international diversification of US firms. Journal of international business studies, 37, 850-862.
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of management review, 20(3), 571-610.
Transparency International. (2025). Corruption perceptions index 2024. Transparency International. https://www.transparency.org/en/cpi/2024
Transparency International. (2025, February 11). Corruption Perceptions Index 2024: Highlights and insights. Transparency International. https://www.transparency.org/en/cpi/2024
Windsor, D. (2014, December). Corporate Social Responsibility: Defining the Societal Dimension. In Proceedings of the International Association for Business and Society (Vol. 25, pp. 97-108).
Zhao, M., Park, S. H., & Zhou, N. (2014). MNC strategy and social adaptation in emerging markets. Journal of International Business Studies, 45(7), 842-861.
Zhong, X., & Ren, G. (2023). Independent and joint effects of CSR and CSI on the effectiveness of digital transformation for transition economy firms. Journal of Business Research, 156, 113478.
Zhong, X., Chen, W., & Ren, G. (2022). The impact of corporate social irresponsibility on emerging-economy firms’ long-term performance: An explanation based on signal theory. Journal of Business Research, 144, 345–357.
Zyglidopoulos, S. C., Georgiadis, A. P., Carroll, C. E., & Siegel, D. S. (2012). Does media attention drive corporate social responsibility?. Journal of business research, 65(11), 1622-1627.