Conference Programme
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available). Note that the schedule is subject to changes.
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Daily Overview |
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Research Sketches 1: Nonmarket Strategy & Stakeholder Pressure Location: Auditorium (Level 1) Session Chair: Marieke Huysentruyt, HEC Paris | |
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Great Expectations: Using Media Sentiment to Detect the Financial Impact of Corporate Reputation Expectancy Violations The Wharton School, University of Pennsylvania, United States of America Conventional accounts expect stakeholder and investor responses to track corporate conduct valence, with responsible actions generating positive responses and irresponsible actions negative responses. We challenge this by integrating expectation-confirmation theory with cognitive psychology to argue that sentiment shocks—abnormal deviations in stakeholder affect relative to firm-specific expectations—are the operative investor signal. While expectancy-confirming events are financially muted, violations prompt reappraisal. We introduce Cumulative Abnormal Media Sentiment (CAMS), a firm-specific sentiment shock measure analogous to Cumulative Abnormal Returns, validated by replicating and extending Flammer’s (2013) environmental event study through 2024. We find that sentiment shocks predict stock price reactions, but the weight investors assign is conditional on environmental reputation: shocks carry inconsistent weight where reputation creates interpretive ambiguity, and differentiated responses where it does not. | |