Purpose This research paper aims to examine the effect of chief executive officer (CEO) characteristics on earnings management. Design/methodology/approach Research samples are manufacturing firms listed in the Indonesian Stock Exchange 2015–2021. CEO characteristics include narcissism, gender, age, tenure, experience, nationality and founding family status. Data analysis uses random-effect regression. Findings The result shows that higher narcissism CEOs have aggressive characteristics so they will be more likely to engage in accrual and real earnings management. Female CEOs, foreign CEOs and founding-family CEOs have higher monitoring and business ethics characteristics so they will be less likely to engage in accrual and real earnings management. CEOs with higher education levels have higher thinking complexity so they will be more likely to engage in accrual earnings management with higher regulator and auditor monitoring barriers than real earnings management. CEOs with financial and accounting experience are familiar with accounting standards and auditor monitoring barriers so they will be more likely to engage in accrual earnings management than real earnings management. On the other hand, there are no effects of CEO age and tenure on earnings management. Originality/value This research contributes to providing evidence of the effect of CEO characteristics on earnings management in a specific industry such as manufacturing firms and emerging markets such as Indonesia with the majority group firms being family firms.
目的本文旨在研究首席执行官（CEO）特征对收益管理的影响。首席执行官的特征包括自恋、性别、年龄、任期、经验、国籍和创始家族地位。研究结果表明，自恋程度较高的 CEO 具有攻击性特征，因此他们更有可能进行应计和实际收益管理。女性首席执行官、外籍首席执行官和创始家族首席执行官具有较高的监督和商业道德特征，因此他们参与应计制和实际收益管理的可能性较低。受教育程度较高的首席执行官具有较高的思维复杂性，因此与真实收益管理相比，他们更有可能参与权责发生制收益管理，而监管者和审计师的监督障碍较高。具有财务和会计经验的首席执行官熟悉会计准则和审计师监督障碍，因此他们更有可能参与权责发生制收益管理，而不是真实收益管理。另一方面，首席执行官的年龄和任期对收益管理没有影响。原创性/价值这项研究有助于提供证据，证明在制造业企业等特定行业和印尼等新兴市场中，首席执行官的特征对收益管理的影响，印尼的大多数企业集团都是家族企业。
{"title":"Do CEO characteristics affect earnings management?","authors":"Adhitya Agri Putra, Doddy Setiawan","doi":"10.1108/cg-02-2023-0078","DOIUrl":"https://doi.org/10.1108/cg-02-2023-0078","url":null,"abstract":"\u0000Purpose\u0000This research paper aims to examine the effect of chief executive officer (CEO) characteristics on earnings management.\u0000\u0000\u0000Design/methodology/approach\u0000Research samples are manufacturing firms listed in the Indonesian Stock Exchange 2015–2021. CEO characteristics include narcissism, gender, age, tenure, experience, nationality and founding family status. Data analysis uses random-effect regression.\u0000\u0000\u0000Findings\u0000The result shows that higher narcissism CEOs have aggressive characteristics so they will be more likely to engage in accrual and real earnings management. Female CEOs, foreign CEOs and founding-family CEOs have higher monitoring and business ethics characteristics so they will be less likely to engage in accrual and real earnings management. CEOs with higher education levels have higher thinking complexity so they will be more likely to engage in accrual earnings management with higher regulator and auditor monitoring barriers than real earnings management. CEOs with financial and accounting experience are familiar with accounting standards and auditor monitoring barriers so they will be more likely to engage in accrual earnings management than real earnings management. On the other hand, there are no effects of CEO age and tenure on earnings management.\u0000\u0000\u0000Originality/value\u0000This research contributes to providing evidence of the effect of CEO characteristics on earnings management in a specific industry such as manufacturing firms and emerging markets such as Indonesia with the majority group firms being family firms.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"50 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139598117","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Maha Khemakhem Jardak, Marwa Sallemi, Salah Ben Hamad
Purpose Remuneration policies may differ from country to country, and their effect on bank stability could be due to the legal framework. Therefore, this study aims to investigate how the legal system impacts the relationship between CEO compensation and bank stability across countries. Design/methodology/approach To test the study hypotheses, the authors use panel data of 74 banks operating in ten OECD countries during the period 2009–2016 and apply the generalized moments method regression model to better remediate the endogeneity problem. Findings The findings confirm that a country’s banking regulations significantly affect its bank stability. Common law countries have less bank stability than civil law countries. This result can be interpreted by the fact that, in common-law countries, banks’ CEO are strongly protected by the law, so they allocate a large part of bank assets to risky loans to improve their variable remuneration. Practical implications The research can help policymakers understand bank stability in one country. Any legal reform would require prior knowledge of how risk-taking may arise in executive compensation. Originality/value The contribution is to explain the controversial effect of executive compensation on bank stability in the framework of legal theory. The authors argue that regulators should monitor compensation structures and that the country’s legal origin of law shapes the CEO compensation structure and is a determinant of bank stability. To the best of the authors’ knowledge, there are no studies exploring this field. So, this study tries to shed more light on the dark side of CEOs’ behavior when undertaking risky projects to maximize their remuneration.
{"title":"The impact of legal systems on CEO compensation and bank stability: a cross-country study","authors":"Maha Khemakhem Jardak, Marwa Sallemi, Salah Ben Hamad","doi":"10.1108/cg-12-2022-0510","DOIUrl":"https://doi.org/10.1108/cg-12-2022-0510","url":null,"abstract":"\u0000Purpose\u0000Remuneration policies may differ from country to country, and their effect on bank stability could be due to the legal framework. Therefore, this study aims to investigate how the legal system impacts the relationship between CEO compensation and bank stability across countries.\u0000\u0000\u0000Design/methodology/approach\u0000To test the study hypotheses, the authors use panel data of 74 banks operating in ten OECD countries during the period 2009–2016 and apply the generalized moments method regression model to better remediate the endogeneity problem.\u0000\u0000\u0000Findings\u0000The findings confirm that a country’s banking regulations significantly affect its bank stability. Common law countries have less bank stability than civil law countries. This result can be interpreted by the fact that, in common-law countries, banks’ CEO are strongly protected by the law, so they allocate a large part of bank assets to risky loans to improve their variable remuneration.\u0000\u0000\u0000Practical implications\u0000The research can help policymakers understand bank stability in one country. Any legal reform would require prior knowledge of how risk-taking may arise in executive compensation.\u0000\u0000\u0000Originality/value\u0000The contribution is to explain the controversial effect of executive compensation on bank stability in the framework of legal theory. The authors argue that regulators should monitor compensation structures and that the country’s legal origin of law shapes the CEO compensation structure and is a determinant of bank stability. To the best of the authors’ knowledge, there are no studies exploring this field. So, this study tries to shed more light on the dark side of CEOs’ behavior when undertaking risky projects to maximize their remuneration.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"110 21","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139614715","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ahmed Bouteska, Taimur Sharif, Mohammad Zoynul Abedin
Purpose Given the serious question raised by the subprime of the 2008 global financial crisis over the rising practices of excessive rewarding of executives in the USA and European firms, the executive pay-performance nexus has emerged as a popular topic of debate in the contemporary corporate finance research. Conducted mostly on the Anglo-Saxon contexts, research outcomes have been inconclusive and dichotomous. Considering this backdrop, this study aims to investigate the endogenous relationship between executive compensation and risk taking in the context of the USA. Design/methodology/approach Using a large sample of non-financial firms from 2010 to 2020 based on panel data and two-stage least square regression. In this study, the riskier corporate decision is measured as book leverage and ratio of R&D expense to total assets. Chief executive officers’ (CEO) experience and age are used as instrumental variables, and these are expected to influence compensation incentives and, hence, affect firm riskiness indirectly. Firm size, return on assets and CEO turnover are reported to affect compensation and corporate decisions, therefore, included as control variables. Given that higher executive compensation is related to riskier corporate decision in firms, this study incorporates total wealth (i.e. accumulated equity related compensation) as an additional proxy of compensation, and this selection is justifiable by the perfect contracting notion of the agency theory. Findings The results of this study show a significant positive and increasing nexus among compensation and riskier corporate decisions. Besides, the compensation level proxied through the percentage of each form of compensation in total compensation is very important as greater equity and greater salary diminishes risk taking. Practical implications The outcomes of this study have useful implications for firm stakeholders and policymakers. Originality/value The level of pay measured by the percentage of each type of compensation in total compensation is of utmost importance as it can increase or decrease risk taking in corporate decisions.
{"title":"Executive compensation, risk and performance: evidence from the USA","authors":"Ahmed Bouteska, Taimur Sharif, Mohammad Zoynul Abedin","doi":"10.1108/cg-01-2023-0017","DOIUrl":"https://doi.org/10.1108/cg-01-2023-0017","url":null,"abstract":"\u0000Purpose\u0000Given the serious question raised by the subprime of the 2008 global financial crisis over the rising practices of excessive rewarding of executives in the USA and European firms, the executive pay-performance nexus has emerged as a popular topic of debate in the contemporary corporate finance research. Conducted mostly on the Anglo-Saxon contexts, research outcomes have been inconclusive and dichotomous. Considering this backdrop, this study aims to investigate the endogenous relationship between executive compensation and risk taking in the context of the USA.\u0000\u0000\u0000Design/methodology/approach\u0000Using a large sample of non-financial firms from 2010 to 2020 based on panel data and two-stage least square regression. In this study, the riskier corporate decision is measured as book leverage and ratio of R&D expense to total assets. Chief executive officers’ (CEO) experience and age are used as instrumental variables, and these are expected to influence compensation incentives and, hence, affect firm riskiness indirectly. Firm size, return on assets and CEO turnover are reported to affect compensation and corporate decisions, therefore, included as control variables. Given that higher executive compensation is related to riskier corporate decision in firms, this study incorporates total wealth (i.e. accumulated equity related compensation) as an additional proxy of compensation, and this selection is justifiable by the perfect contracting notion of the agency theory.\u0000\u0000\u0000Findings\u0000The results of this study show a significant positive and increasing nexus among compensation and riskier corporate decisions. Besides, the compensation level proxied through the percentage of each form of compensation in total compensation is very important as greater equity and greater salary diminishes risk taking.\u0000\u0000\u0000Practical implications\u0000The outcomes of this study have useful implications for firm stakeholders and policymakers.\u0000\u0000\u0000Originality/value\u0000The level of pay measured by the percentage of each type of compensation in total compensation is of utmost importance as it can increase or decrease risk taking in corporate decisions.\u0000","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"29 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139379929","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This paper aims to empirically investigate the moderating role of corporate governance (CG) in the capital structure-performance relationship. Design/methodology/approach The analysis is based on top Business Today-500 companies and covers a time span of 10 years. The fixed effect panel regression model is used to examine the impact of CG mechanisms on the relationship between capital structure and firm performance. Findings The core findings of the study indicate significant positive moderating role of board independence, board size and family ownership on the relationship between leverage and performance. Practical implications The results enable the managers of Indian firms to comprehend the significance of CG framework while taking financing decisions. The findings encourage managers to raise debt funds in those firms that adhere to good governance norms. Originality/value Unlike extant studies that emphasize on the moderating impact of single CG variable in leverage-performance relationship, the current work comprehensively examines the role of many CG factors that moderate the relationship between capital structure and firm performance. To the best of the authors’ knowledge, the present study is the first of its kind with respect to India.
{"title":"The moderating effect of corporate governance factors on capital structure and performance: evidence from Indian companies","authors":"A. Bhatia, Pooja Kumari","doi":"10.1108/cg-06-2023-0239","DOIUrl":"https://doi.org/10.1108/cg-06-2023-0239","url":null,"abstract":"Purpose This paper aims to empirically investigate the moderating role of corporate governance (CG) in the capital structure-performance relationship. Design/methodology/approach The analysis is based on top Business Today-500 companies and covers a time span of 10 years. The fixed effect panel regression model is used to examine the impact of CG mechanisms on the relationship between capital structure and firm performance. Findings The core findings of the study indicate significant positive moderating role of board independence, board size and family ownership on the relationship between leverage and performance. Practical implications The results enable the managers of Indian firms to comprehend the significance of CG framework while taking financing decisions. The findings encourage managers to raise debt funds in those firms that adhere to good governance norms. Originality/value Unlike extant studies that emphasize on the moderating impact of single CG variable in leverage-performance relationship, the current work comprehensively examines the role of many CG factors that moderate the relationship between capital structure and firm performance. To the best of the authors’ knowledge, the present study is the first of its kind with respect to India.","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"45 18","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139127940","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Michael Murgolo, Patrizia Tettamanzi, Valentina Minutiello
Purpose This study aims to investigate the quality of disclosure of a cutting-edge reporting tool – integrated reporting () – in terms of its effectiveness to report on COVID-19 pandemic information, its ability to provide forward-looking information and risk impact implications, and its quality determinants in challenging times. Design/methodology/approach Thanks to a content analysis of 247 for FY20, an integrated reporting disclosure score was developed to assess the disclosure quality provided by the sampled companies. Three research questions were tested through logistic regressions. Findings Non-financial disclosure activities struggle to provide adequate information in terms of potential future scenarios, risk assessment and forward-looking analyses. However, companies incorporated in “Anglo-Saxon” territories drafted integrated reports of higher quality. More recently, incorporated companies have made a greater effort to measure and report COVID-19 pandemic impacts on environmental, social and governance and business activities, also increasing their risk assessment and mitigation efforts. Concerning the determinants of disclosure quality, leverage, corporate governance structures, country of incorporation and belonging to “high impact” industries all lead to a higher quality of disclosure. Originality/value Examining in detail corporate social responsibility activities and corporate governance integrity is pivotal to orienting strategy towards sustainable trajectories: to do so, corporate reporting and disclosure practices are essential tools. In this context, corporate governance systems that emphasize board diversity are proven, even in disruptive circumstances, to play a crucial role in providing corporate reports of higher quality. High disclosure quality that goes beyond mere financial results is considered to be necessary to remain competitive strategically, socially and environmentally.
{"title":"Accounting, ESG dynamics and the pandemic: when the quality of disclosure becomes crucial to sustainable success","authors":"Michael Murgolo, Patrizia Tettamanzi, Valentina Minutiello","doi":"10.1108/cg-04-2023-0161","DOIUrl":"https://doi.org/10.1108/cg-04-2023-0161","url":null,"abstract":"Purpose This study aims to investigate the quality of disclosure of a cutting-edge reporting tool – integrated reporting () – in terms of its effectiveness to report on COVID-19 pandemic information, its ability to provide forward-looking information and risk impact implications, and its quality determinants in challenging times. Design/methodology/approach Thanks to a content analysis of 247 for FY20, an integrated reporting disclosure score was developed to assess the disclosure quality provided by the sampled companies. Three research questions were tested through logistic regressions. Findings Non-financial disclosure activities struggle to provide adequate information in terms of potential future scenarios, risk assessment and forward-looking analyses. However, companies incorporated in “Anglo-Saxon” territories drafted integrated reports of higher quality. More recently, incorporated companies have made a greater effort to measure and report COVID-19 pandemic impacts on environmental, social and governance and business activities, also increasing their risk assessment and mitigation efforts. Concerning the determinants of disclosure quality, leverage, corporate governance structures, country of incorporation and belonging to “high impact” industries all lead to a higher quality of disclosure. Originality/value Examining in detail corporate social responsibility activities and corporate governance integrity is pivotal to orienting strategy towards sustainable trajectories: to do so, corporate reporting and disclosure practices are essential tools. In this context, corporate governance systems that emphasize board diversity are proven, even in disruptive circumstances, to play a crucial role in providing corporate reports of higher quality. High disclosure quality that goes beyond mere financial results is considered to be necessary to remain competitive strategically, socially and environmentally.","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"49 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139155231","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This study aims to examine the effect of social reputation on the relationship between boards and foreign ownership on the quality of sustainability disclosure. Design/methodology/approach The sample of this study consists of publicly-traded primary and secondary sector companies in Indonesia for 12 years, from 2009 to 2020. This study uses panel model regression to generate its results. The disclosure data are hand-collected data sourced from annual financial and company sustainability reports. Findings Higher foreign board component companies report lower quality of sustainability disclosure, whereas companies that possess foreign ownership components report a higher quality of sustainability disclosure. This result is strengthened by obtaining consistent results tested with economic, social and environmental disclosure components. In addition, if the company has a good social reputation, it will strengthen the relationship of foreign ownership to the quality of sustainability disclosure. Practical implications These findings are relevant for policymakers, professional organizations and practitioners in Indonesia and other developing countries. Originality/value The moderating effect of social reputation on the relation of the foreign board and foreign ownership-quality of sustainability disclosure as this study does remain rare in developing countries. This study complements various research conducted in developing countries, such as Indonesia, by offering a new dimension. The results indicate that social reputation has a moderating role in determining the impact of foreign ownership on the quality of sustainability disclosure.
{"title":"The role of foreign board and ownership on the quality of sustainability disclosure: the moderating effect of social reputation","authors":"Arumega Zarefar, Dian Agustia, N. Soewarno","doi":"10.1108/cg-05-2022-0236","DOIUrl":"https://doi.org/10.1108/cg-05-2022-0236","url":null,"abstract":"Purpose This study aims to examine the effect of social reputation on the relationship between boards and foreign ownership on the quality of sustainability disclosure. Design/methodology/approach The sample of this study consists of publicly-traded primary and secondary sector companies in Indonesia for 12 years, from 2009 to 2020. This study uses panel model regression to generate its results. The disclosure data are hand-collected data sourced from annual financial and company sustainability reports. Findings Higher foreign board component companies report lower quality of sustainability disclosure, whereas companies that possess foreign ownership components report a higher quality of sustainability disclosure. This result is strengthened by obtaining consistent results tested with economic, social and environmental disclosure components. In addition, if the company has a good social reputation, it will strengthen the relationship of foreign ownership to the quality of sustainability disclosure. Practical implications These findings are relevant for policymakers, professional organizations and practitioners in Indonesia and other developing countries. Originality/value The moderating effect of social reputation on the relation of the foreign board and foreign ownership-quality of sustainability disclosure as this study does remain rare in developing countries. This study complements various research conducted in developing countries, such as Indonesia, by offering a new dimension. The results indicate that social reputation has a moderating role in determining the impact of foreign ownership on the quality of sustainability disclosure.","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"173 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139172635","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhammad Naveed Khan, P. M. Rafi-ul-Shan, Pervaiz Akhtar, Zaheer Khan, Saqib Shamim
Purpose Achieving social sustainability has become a critical challenge in global supply chain networks, particularly during complex crises such as terrorism. The purpose of this study is to explore how institutional forces influence the social sustainability approaches of logistics service providers (LSPs) in high terrorism-affected regions (HTAR). This then leads to investigating how the key factors interact with Institutional Theory. Design/methodology/approach An exploratory multiple-case study research method was used to investigate six cases of different-sized logistics LSPs, each in an HTAR. The data was collected using semistructured interviews and triangulated using on-site observations and document analysis. Thematic analysis was used in iterative cycles for cross-case comparisons and pattern matching. Findings The findings interact with Institutional Theory and the three final-order themes. First, management processes are driven by coopetition and innovation. Second, organizational resources, structure and culture lead to an ineffective organizational design. Finally, a lack of institutionalization creates institutional uncertainty. These factors are rooted in many other first-order factors such as information sharing, communication, relationship management, capacity development, new process developments, workforce characteristics, technology, microlevel culture and control aspects. Originality/value This study answers the call for social sustainability research and enriches the literature on social sustainability, Institutional Theory and LSPs in HTARs by providing illustrations showing that institutional forces act as driving forces for social sustainability initiatives by shaping the current management processes. Conversely, the same forces impede social sustainability initiatives by shaping the current organizational designs and increasing institutional uncertainty.
{"title":"Exploring the impact of institutional forces on the social sustainability of logistics service providers: insights from a high terrorism-affected region","authors":"Muhammad Naveed Khan, P. M. Rafi-ul-Shan, Pervaiz Akhtar, Zaheer Khan, Saqib Shamim","doi":"10.1108/cg-05-2023-0214","DOIUrl":"https://doi.org/10.1108/cg-05-2023-0214","url":null,"abstract":"Purpose Achieving social sustainability has become a critical challenge in global supply chain networks, particularly during complex crises such as terrorism. The purpose of this study is to explore how institutional forces influence the social sustainability approaches of logistics service providers (LSPs) in high terrorism-affected regions (HTAR). This then leads to investigating how the key factors interact with Institutional Theory. Design/methodology/approach An exploratory multiple-case study research method was used to investigate six cases of different-sized logistics LSPs, each in an HTAR. The data was collected using semistructured interviews and triangulated using on-site observations and document analysis. Thematic analysis was used in iterative cycles for cross-case comparisons and pattern matching. Findings The findings interact with Institutional Theory and the three final-order themes. First, management processes are driven by coopetition and innovation. Second, organizational resources, structure and culture lead to an ineffective organizational design. Finally, a lack of institutionalization creates institutional uncertainty. These factors are rooted in many other first-order factors such as information sharing, communication, relationship management, capacity development, new process developments, workforce characteristics, technology, microlevel culture and control aspects. Originality/value This study answers the call for social sustainability research and enriches the literature on social sustainability, Institutional Theory and LSPs in HTARs by providing illustrations showing that institutional forces act as driving forces for social sustainability initiatives by shaping the current management processes. Conversely, the same forces impede social sustainability initiatives by shaping the current organizational designs and increasing institutional uncertainty.","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"149 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139171649","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
C. Kuzey, Ali Uyar, N. Ellili, Abdullah S. Karaman
Purpose This study aims to examine the potential threshold effect in the association between corporate social responsibility (CSR) performance and social reputation. Design/methodology/approach This study includes an international and cross-sector sample covering 41 countries, nine sectors and 45,395 firm-year observations. It applies a parabolic relationship, rather than linear regressions, between CSR engagement and social reputation via CSR awarding. This implies that CSR performance should increase until a certain point to gain a social reputation but then should decrease after reaching that threshold point considering limited financial resources. Findings The findings of country-industry-year fixed-effects logistic regressions confirm the threshold effect with an inverted U-shaped relationship between CSR and CSR awarding. More specifically, firms increase their environmental and social engagement until a certain point, and then they reduce it after reaching a social reputation. This finding is confirmed by three dimensions of the environmental pillar (i.e. resource use, emissions and eco-innovation) as well as four dimensions of the social pillar (i.e. workforce, human rights, community and product responsibility). The findings are robust to alternative samples, alternative methodology and endogeneity concerns. Practical implications The findings of this study have implications for firms about the better allocation of available funds between CSR and operations. The findings could be particularly useful for CSR teams/committees of the firms who formulate CSR policies and how to mobilize firm resources for better social enhancement via environmental and social reputation. Originality/value This study examines deeper the nature of the association between CSR engagement and social reputation and considers the possibility of an inverted U-shaped relationship between them. The determination of a threshold effect suggests that CSR engagement increases social reputation, but once it reaches a certain point, social reputation will decrease owing to financial resource constraints.
目的 本研究旨在探讨企业社会责任（CSR）绩效与社会声誉之间潜在的门槛效应。 设计/方法/途径 本研究采用国际跨行业样本，涵盖 41 个国家、9 个行业和 45,395 个企业年观测值。它通过企业社会责任奖项，在企业社会责任参与和社会声誉之间应用了抛物线关系，而不是线性回归。这意味着，企业社会责任表现在达到某个临界点之前应不断提高，以获得社会声誉，但在达到该临界点之后，考虑到有限的财务资源，企业社会责任表现应有所下降。 研究结果 国家-行业-年份固定效应逻辑回归结果证实了门槛效应，即企业社会责任与企业社会责任奖励之间存在倒 U 型关系。更具体地说，企业在达到一定程度之前会提高环境和社会参与度，而在达到一定社会声誉之后则会降低参与度。环境支柱的三个方面（即资源利用、排放和生态创新）以及社会支柱的四个方面（即劳动力、人权、社区和产品责任）证实了这一结论。研究结果对替代样本、替代方法和内生性问题具有稳健性。 实践意义 本研究的结论对企业在企业社会责任和运营之间更好地分配可用资金具有启示意义。对于制定企业社会责任政策的企业社会责任团队/委员会，以及如何通过环境和社会声誉调动企业资源以更好地提高社会效益，研究结果尤其有用。 原创性/价值 本研究深入探讨了企业社会责任参与度与社会声誉之间的关联性质，并考虑了二者之间存在倒 U 型关系的可能性。门槛效应的确定表明，企业社会责任的参与会提高社会声誉，但一旦达到一定程度，社会声誉就会因财务资源的限制而降低。
{"title":"Corporate social responsibility performance and social reputation via corporate social responsibility awarding: is there a threshold effect?","authors":"C. Kuzey, Ali Uyar, N. Ellili, Abdullah S. Karaman","doi":"10.1108/cg-03-2023-0128","DOIUrl":"https://doi.org/10.1108/cg-03-2023-0128","url":null,"abstract":"Purpose This study aims to examine the potential threshold effect in the association between corporate social responsibility (CSR) performance and social reputation. Design/methodology/approach This study includes an international and cross-sector sample covering 41 countries, nine sectors and 45,395 firm-year observations. It applies a parabolic relationship, rather than linear regressions, between CSR engagement and social reputation via CSR awarding. This implies that CSR performance should increase until a certain point to gain a social reputation but then should decrease after reaching that threshold point considering limited financial resources. Findings The findings of country-industry-year fixed-effects logistic regressions confirm the threshold effect with an inverted U-shaped relationship between CSR and CSR awarding. More specifically, firms increase their environmental and social engagement until a certain point, and then they reduce it after reaching a social reputation. This finding is confirmed by three dimensions of the environmental pillar (i.e. resource use, emissions and eco-innovation) as well as four dimensions of the social pillar (i.e. workforce, human rights, community and product responsibility). The findings are robust to alternative samples, alternative methodology and endogeneity concerns. Practical implications The findings of this study have implications for firms about the better allocation of available funds between CSR and operations. The findings could be particularly useful for CSR teams/committees of the firms who formulate CSR policies and how to mobilize firm resources for better social enhancement via environmental and social reputation. Originality/value This study examines deeper the nature of the association between CSR engagement and social reputation and considers the possibility of an inverted U-shaped relationship between them. The determination of a threshold effect suggests that CSR engagement increases social reputation, but once it reaches a certain point, social reputation will decrease owing to financial resource constraints.","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"144 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139177721","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Vibha Soni, Priti Saxena, Sana Moid, Abhineet Saxena, Mita Mehta
Purpose This study aims to use a multi-stage scale development process to identify the dimensions of philanthropic corporate social responsibility (PCSR) in India’s fast-moving consumer goods (FMCG) sector. Design/methodology/approach The authors conducted a study to develop a comprehensive, reliable and valid scale for measuring PCSR based on the customer perception of FMCG product manufacturers. This research adopted a comprehensive and detailed scale development process using multi-stage sampling for scale development. This final study was conducted on a sample of 402 respondents from the city of Jaipur, India. Findings The results have underlined the multi-dimensional aspect of PCSR; these dimensions are: altruism towards society, volunteering for local community development, generosity towards ecology, benevolent spirit and problem-solving charity. Practical implications This study gives valuable insights into philanthropic scale development in the FMCG sector that can immensely help domestic and international marketers to formulate CSR as a strategy. This research provides insights into a wide range of scales which can be base for future research studies that aim to explore different organizational settings. Originality/value PCSR and CSR are important for developing strategies for sustainable businesses across the globe. Dimensions of PCSR will be useful for practitioners and researchers in developing second-order constructs for future studies.
{"title":"Identifying the dimensions of philanthropic CSR in the FMCG sector: agenda for the sustainability of business","authors":"Vibha Soni, Priti Saxena, Sana Moid, Abhineet Saxena, Mita Mehta","doi":"10.1108/cg-05-2023-0224","DOIUrl":"https://doi.org/10.1108/cg-05-2023-0224","url":null,"abstract":"Purpose This study aims to use a multi-stage scale development process to identify the dimensions of philanthropic corporate social responsibility (PCSR) in India’s fast-moving consumer goods (FMCG) sector. Design/methodology/approach The authors conducted a study to develop a comprehensive, reliable and valid scale for measuring PCSR based on the customer perception of FMCG product manufacturers. This research adopted a comprehensive and detailed scale development process using multi-stage sampling for scale development. This final study was conducted on a sample of 402 respondents from the city of Jaipur, India. Findings The results have underlined the multi-dimensional aspect of PCSR; these dimensions are: altruism towards society, volunteering for local community development, generosity towards ecology, benevolent spirit and problem-solving charity. Practical implications This study gives valuable insights into philanthropic scale development in the FMCG sector that can immensely help domestic and international marketers to formulate CSR as a strategy. This research provides insights into a wide range of scales which can be base for future research studies that aim to explore different organizational settings. Originality/value PCSR and CSR are important for developing strategies for sustainable businesses across the globe. Dimensions of PCSR will be useful for practitioners and researchers in developing second-order constructs for future studies.","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"55 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139180531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This paper aims to investigate the impact of family involvement in ownership and governance on the quality of internal auditing. Design/methodology/approach Leveraging a hand-collected data set of listed family firms from 2014 to 2020, this study uses regression analyses to investigate the impact of family ownership, family involvement on the board, family CEO and the generational stage of the family business on the quality of internal auditing. Findings The results provide evidence that family ownership is positively associated with the quality of internal auditing, while later generational stages of family businesses have the opposite effect. Additional analyses reveal that the presence of a sustainability board sub-committee moderates the relationship between generational stages of family businesses and the quality of internal auditing function. Research limitations/implications This paper does not consider country-institutional factors and other potentially family-related antecedents or governance factors that may affect the quality of internal auditing. Practical implications The results are informative for investors and non-family stakeholders interested in understanding under which conditions family-related factors influence the quality of internal auditing functions. Originality/value This study offers fresh evidence regarding the relationship between family-related factors and the quality of internal auditing and board sub-committees that moderate such a relationship in family businesses.
{"title":"Family involvement in ownership and governance and internal auditing quality","authors":"Gianluca Ginesti, Rosalinda Santonastaso, Riccardo Macchioni","doi":"10.1108/cg-10-2022-0405","DOIUrl":"https://doi.org/10.1108/cg-10-2022-0405","url":null,"abstract":"Purpose This paper aims to investigate the impact of family involvement in ownership and governance on the quality of internal auditing. Design/methodology/approach Leveraging a hand-collected data set of listed family firms from 2014 to 2020, this study uses regression analyses to investigate the impact of family ownership, family involvement on the board, family CEO and the generational stage of the family business on the quality of internal auditing. Findings The results provide evidence that family ownership is positively associated with the quality of internal auditing, while later generational stages of family businesses have the opposite effect. Additional analyses reveal that the presence of a sustainability board sub-committee moderates the relationship between generational stages of family businesses and the quality of internal auditing function. Research limitations/implications This paper does not consider country-institutional factors and other potentially family-related antecedents or governance factors that may affect the quality of internal auditing. Practical implications The results are informative for investors and non-family stakeholders interested in understanding under which conditions family-related factors influence the quality of internal auditing functions. Originality/value This study offers fresh evidence regarding the relationship between family-related factors and the quality of internal auditing and board sub-committees that moderate such a relationship in family businesses.","PeriodicalId":503557,"journal":{"name":"Corporate Governance: The International Journal of Business in Society","volume":"128 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139230242","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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