{"title":"How Does Legitimacy Operate in Emerging Capital Markets? Investigating the Moderating Effects of Premium Listings and Firm Size on Risk","authors":"Luciano Rossoni, Wesley Mendes-da-Silva","doi":"10.2139/ssrn.2838983","DOIUrl":null,"url":null,"abstract":"Drawing on an institutional theoretical perspective, we investigated the impact of the origins of organizational legitimacy on systematic risk using a sample of 358 Brazilian companies between the years 2002 and 2007. We regard three origins of legitimacy – formal-regulatory (presence in premium listings), cultural-cognitive (board of directors), and normative (reputation) legitimacy – to empirically investigate how the company's size and adherence to premium lists moderate other sources of legitimacy. Our results indicate that only under apparently better-quality corporate governance conditions – presence in premium listings – corporate reputation and the board of directors reduce systematic risk. In addition, we show that the effect of reputation on risk is positively moderated by firm size.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"35 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2016-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"5","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Corporate Governance: Disclosure","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.2838983","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 5
Abstract
Drawing on an institutional theoretical perspective, we investigated the impact of the origins of organizational legitimacy on systematic risk using a sample of 358 Brazilian companies between the years 2002 and 2007. We regard three origins of legitimacy – formal-regulatory (presence in premium listings), cultural-cognitive (board of directors), and normative (reputation) legitimacy – to empirically investigate how the company's size and adherence to premium lists moderate other sources of legitimacy. Our results indicate that only under apparently better-quality corporate governance conditions – presence in premium listings – corporate reputation and the board of directors reduce systematic risk. In addition, we show that the effect of reputation on risk is positively moderated by firm size.
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