Research

Corporate social and political action · Local communities · Nonmarket and stakeholder strategy · Organizational theory

* Alphabetical order co-authorship. † Abridged title.

Peer-Reviewed Publications

Bruno C*, Henisz W*. 2026. Managing political risk: A multi-disciplinary review and reconsideration. Academy of Management Perspectives.
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Abstract
Political risks have been historically treated as discrete, probabilistic events managed in functional silos. However, contemporary political risks – from US-China relations to supply chain disruptions due to COVID-19 – call for more comprehensive approaches to political risk management that recognize its cross-functional impacts. Through a systematic review of 1,235 articles across ten fields and disciplines, we support a reconceptualization of political risk as a form of Knightian uncertainty characterized by unknown probabilities and cross-functional effects. Our analysis reveals how political risks create spillovers between business functions (e.g., from operations to human resources) that firms are often unprepared to manage. Drawing from our synthesis, an emerging literature on enterprise risk management (ERM), and a study of executives managing political risk, we explain different governance frameworks for managing these risks – i.e., hierarchical, flat, and hybrid. We also expand on specific protocols for identifying risks, assessing their cross-functional impacts, and implementing integrated responses. Our multidisciplinary approach offers managers practical tools for navigating modern political risks while also offering guidance for future academic research that expands beyond management-focused perspectives.
Bruno C, Shah F, Robbins G. 2025. An Economic Model of Transboundary Water Agreements with Groundwater and Surface Water Interaction: Application to a US River Basin with a History of Conflict. Water Resources Research.
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Abstract
This study examines the connection between groundwater and surface water in the design of transboundary compacts. A steady-state hydro-economic model is developed and applied to a river basin in the United States. Simulations demonstrate that when a water compact is designed to govern only surface water, the assigned allocations are nonbinding and lead to decreased river-flow in the downstream region. When the compact is designed to govern surface water and groundwater usage combined, however, the assigned allocations are binding and changes in them can increase overall net benefits, with the extent dependent on flexibility in compact design.
Bruno C, Henisz W. 2024. Environmental, Social, and Governance (ESG) Outcomes and Municipal Credit Risk. Business & Society.
View paper · View UNPRI blog on earlier version
Abstract
We investigate the association between a wide range of community level environmental, social, and governance (ESG) outcomes and the credit risk of US municipal finance fixed income securities. We develop a novel dataset of multiple ESG outcomes for US counties and connect it to a 2001-2020 panel of municipal bonds issued within those counties. Overall, we find supportive evidence that collective increases in community level ESG factors (i.e., ESG outcomes) are associated with reductions in credit risk for US municipal finance instruments over time. We theorize that these associations arise from variations in investor perceptions and manifested changes in fiscal health over time as a function of changing ESG outcomes. Post-hoc analyses leveraging quasi-exogenous shocks to uncertainty, as well as connecting ESG outcomes to various measures of fiscal health at the county-year level, and credit ratings at the bond-year level, help validate this theory. Our research suggests that even socially agnostic investors should investigate the environmental and social performance of a municipality as part of their credit due diligence.
Atz U, Van Holt T, Liu Z, Bruno C. 2023. Does sustainability generate better financial performance? Review, meta-analysis, and propositions. Journal of Sustainable Finance & Investment.
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Abstract
Sustainability in business and ESG (environmental, social, and governance) in finance have exploded in popularity among researchers and practitioners. We surveyed 1,141 primary peer-reviewed papers and 27 meta-reviews (based on ∼1,400 underlying studies) published between 2015 and 2020. Aggregate conclusions from a sample suggest that the financial performance of ESG investing has on average been indistinguishable from conventional investing (with one in three studies indicating superior performance) – in contrast with research in the wider management literature as well as industry reports. Until recently top finance journals did not publish climate change related studies, yet these studies capture the frontier of corporate risk and ESG investment strategies. We developed three propositions: first, ESG integration as a strategy seems to perform better than screening or divestment; second, ESG investing provides asymmetric benefits, especially during a social or economic crisis; and third, decarbonization strategies can potentially capture a climate risk premium.
Atz U*, Bruno C*. 2023. Locating the Future of ESG: The Promise of Geospatial Data in Advancing ESG Research. Sustainability and Climate Change.
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Abstract
This viewpoint surveys the environmental, social, governance (ESG) approach to sustainability at a time where it is simultaneously oversold and underestimated. We emphasize that ESG is not the same as sustainability. ESG can describe risks, opportunities, or simply preferences, and historically the process of turning soft information into hard data takes time. We suggest the frontier of ESG is location-based data, which can address some of the many shortcomings of firm-level ESG scores.
Bruno C, Campbell B. 2016. Students' Willingness to Pay for More Local, Organic, Non-GMO and General Food Options. Journal of Food Distribution Research 47: 32–48.
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Abstract
As universities look to source “sustainable” products, it is critical to understand student demand and the economic feasibility of adding new sustainable products. Using an online survey in conjunction with a Tobit model we find that half of students in our sample are willing to pay more for increased local and organic food options with only a third willing to pay more for increased non-GMO options. The economic feasibility of adding new local, organic, and nonGMO options is questionable as charging students for their willingness to pay results in only a 1–2% gain in revenue which may not cover the cost of more options in on-campus dining halls.

Papers Under Review or Revise & Resubmit

Cobb A, Werner T, Wry T, Bruno C. Affective polarization and organizations.† 2^nd revise and resubmit at Organization Science.
Bruno C, Auslander J. Stakeholder strategies for managing financial distress.† Revise & resubmit at Strategy Science.
Abstract
In this study, we frame financial distress as an issue of relational contracts. Drawing on organizational economics, we investigate whether and when a corporation's stakeholder management practices can cultivate relational capital that reduces the likelihood of entering financial distress. Using panel regression, difference-in-differences, and model uncertainty analysis on a sample of publicly traded corporations, we find that more successful engagement with powerful stakeholders' urgent issues is associated with a lower probability of entering financial distress. We proxy for this engagement using volume-weighted sentiment, derived from millions of news articles on industry-specific material business issues. The relationship is stronger for less vertically integrated corporations, suggesting that a greater reliance on external stakeholders amplifies the protective value of relational capital under extreme distress conditions. Matching on firms that subsequently filed for bankruptcy further supports our main findings: among financially similar firms, those that went bankrupt had significantly lower stakeholder issue performance in the years preceding their filing. Supplementary analysis using relationship data from corporate supply chains provides evidence consistent with underlying mechanisms. Illustrative case examples complement these findings.
Varendh-Mansson C, Wry T, Bruno C. Digital technology buffering hybrid enterprises from shocks.† Reject & resubmit at Journal of Business Venturing.
Bruno C*, Preston M*, Wry T*. An integration of organizational activism and allyship.† Proposal under review at Academy of Management Annals.
Bruno C, Wry T, Cobb A, Werner T. Criticism for corporate silence.† Under review at Strategic Management Journal.
View Knowledge@Wharton article
Abstract
Extant research overlooks why firms receive varying levels of criticism for not engaging with polarized social issues. Further, little is known about the consequences of engaging with these issues in the face of criticism. To understand which firms are at the highest risk of missteps, we integrate arguments from expectancy violations theory and related work in organizational theory. We argue that external criticism stems from general audiences' expectations – which vary significantly between firms – being left unmet. These expectations have two dimensions: predictive, reflecting audiences' perceptions of the likelihood a firm will engage based on past actions and related cues; and prescriptive, based on their beliefs as to whether a firm has a moral obligation to respond. We further posit that responding to a polarized issue in the face of criticism can backfire, eliciting greater and increasingly bipartisan critique. Empirical analysis of criticism for silence and subsequent firm responses to a controversial voting law in Georgia supports these arguments. In this context, prescriptive and predictive expectations interacted to lead to mostly Democratic-leaning critique. Firms that subsequently broke their silence received both Democratic- and Republican-leaning criticism afterwards. Post-hoc analyses revealed that early and substantive engagement was associated with less criticism.
Wry T, Bruno C, Varendh-Mansson C. The role of digital technology in supporting those affected by disaster.† Under review at Organization Science.

Working Papers

Ulrich E, Bruno C. Hidden Tolls: Stakeholder Orientation and Market Reactions to Cross-Border Mergers & Acquisitions.
Abstract
Should multinational enterprises (MNEs) be attuned to stakeholders' perceptions of their cross-border merger & acquisition (CBA) choices? We argue that multinationals face greater scrutiny when they announce investments in countries that are viewed unfavorably by their home country stakeholders, resulting in material market reactions. Leveraging arguments from stakeholder strategy research, we posit that firms with a strong stakeholder orientation are better positioned to mitigate this reaction through two key channels. First, their enhanced attentiveness to stakeholders' perceptions leads them to be more selective in their M&A choices. Second, when they do proceed with potentially controversial acquisitions, their stakeholder management capabilities enable navigating the M&A announcement process in a way that reduces negative stakeholder perceptions. To test our arguments, we conduct an event study of CBA announcements linking a novel measure of short-term changes in stakeholder sentiment towards a corporation to the abnormal returns of acquiring firms. Results support our theory development and provide fertile ground to differentiate the risks to acquirers from announcing M&A in contested environments.
Bruno C, Bettinazzi E. [Dissertation, Chapter 1] Corporate headquarter departures, cohesion, and community welfare.
Bruno C. [Dissertation, Chapter 2] Going local: Corporate adaptation to communities' most pressing social and environmental issues.
Abstract
Stakeholder strategy research suggests that companies benefit when their engagement addresses relevant social and environmental issues. While this indicates potential value in tailoring engagement to local stakeholder priorities, prior research has given limited attention to how the same firm manages different types of issues across the multiple local geographic communities where it operates. For instance, some communities may prioritize poverty and health while others may emphasize climate change, public safety, or education. This variation creates a strategic tension for firm engagement. Should a company adopt an approach that focuses on addressing a standard set of issues – which offers advantages like developing core competencies and reducing coordination costs – or should it tailor its engagement to align with local priorities? I examine this question with a novel dataset leveraging millions of media articles to capture local issue alignment – the perceived fit between local issues and company engagement – for over 200 firms across over 700 U.S. cities from 2015 to 2021. Results show that local issue alignment is positively associated with local sentiment, which in turn relates to sales. The value of LIA depends on the distinctiveness of a community's issue landscape: in communities where local issues diverge from national patterns, higher LIA is associated with more positive sentiment, consistent with the argument that alignment in these contexts is more likely to be perceived as deliberate adaptation. Additional analyses validate competitive positioning – whereby locally aligned firms stand out relative to peers in the same community – as a core channel driving this relationship. Notably, exploratory results suggest that although LIA may associate positively with sentiment at the corporate-city level, it may also introduce firm-level risks, motivating further study of these dynamics across levels of analysis. These arguments and results contribute to stakeholder strategy by revealing the importance of local issue variation and identifying conditions where adaptation creates value for a company.

Reports, Blogs, and Other Papers

Wry T, Yau T, Bruno C. 2025. Do Universities Close the Gender-Funding Gap in Entrepreneurship? Impact Investing Research Lab at the Wharton Impact, Value, and Sustainable Business Initiative.
View paper · View Knowledge@Wharton article
Bruno C, CPP Investments Insights Institute, He A, Henisz W, Pollock J, Ulrich E (alphabetical). 2023. The People Factor: How Investing in Employees Pays Off.
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Fromer-Babcock A, Barrymore N, Bruno C, He A, Henisz W, Sampson R, Shao X (alphabetical). 2022. Walking the Talk: Valuing a Multi-Stakeholder Strategy.
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Bruno C, Henisz W. 2022. ESG Factors in Municipal Finance. UNPRI Blog.
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Data Resources and Replication

Appendix and dataset: Bruno C, Henisz W. 2026. Managing political risk: A multi-disciplinary review and reconsideration. Academy of Management Perspectives.
View dataset
Dataset and replication model accompanying: Bruno C, Shah F, Robbins G. 2025. An Economic Model of Transboundary Water Agreements with Groundwater and Surface Water Interaction: Application to a US River Basin with a History of Conflict. Water Resources Research.
View dataset
Dataset and code accompanying: Atz U, Van Holt T, Liu Z, Bruno C. 2023. Does Sustainability Generate Better Financial Performance? Review, Meta-analysis, and Propositions. Journal of Sustainable Finance and Investment.
View dataset