Market reaction to Fortune's "100 best companies" in the new millennium : an investor perspective
Socially responsible investing has been gaining substantial attention in recent decades with growing interest in corporate governance and employee-friendly firms. Among numerous published sources recognizing firms for social responsibility, Fortune magazine publishes an annual list of the "100 Best Companies to Work For." Friedman (1970) argues that management should focus solely on maximizing shareholder wealth, but numerous studies are finding abnormal market reactions to the publishing of focus lists spotlighting firms. This event study adds to a growing body of literature in the field of behavioral finance, observing investors' reaction to Fortune's "100 Best Companies" from 2000 to 2010. Analysis of results shows significant negative returns surrounding the event date, an anomaly to previous studies.