Abstract

Drawing on attribution theory and expectancy violation theory, this study investigates the effect of corporate social responsibility (CSR) on stock market reactions in the context of intentional crises, during which stakeholders are likely to attribute crisis responsibility to the focal firm. Using a sample of Chinese listed firms from 2012 to 2022, we find that in the context of an intentional crisis, the stock market reacts more negatively to firms with higher prior CSR performance. Two contingency factors (i.e., media attention and state ownership) strengthen this negative relationship. This study contributes to the CSR literature by broadening knowledge of the insurance-like effects of CSR and by identifying a “boomerang effect” of CSR in the context of intentional crises.