What is the role of national media environments in shaping the impact of CSR on a firm's performance?

Purpose - This study aims to contribute to the existing literature on corporate social responsibility (CSR) by examining the influence of national media environments on the economic consequences of CSR. Drawing on signaling theory, this study distinguishes between two country-level media environments - digital media accessibility and media freedom - of which the prior research has often implied their value in cultivating the stakeholders' awareness about the firms' socially responsible behavior, suggesting that they amplify the benefits of CSR actions. Design/methodology/approach - This study conducts multilevel analysis with a sample of 44,222 firm-year observations representing 6,726 companies from 57 countries over the period 2003-2019. Findings - This study finds supportive evidence that CSR is more positively related to financial gains in countries with greater digital media accessibility. This study concludes that digital media accessibility affects a firm's reputation and legitimacy benefits derived from CSR actions, resulting in better financial performance (FP). Originality/value - The findings of this paper contribute to the existing literature on the CSR-FP relationship by demonstrating the relevance of considering the media environment to better explain the link between CSR and FP. In doing so, this study enriches our understanding of the importance of the media at macro-level institutions by examining how and why these media environments cultivate a culture of CSR as a strategic tool for firms.