Determinants of voluntary CSR disclosure: empirical evidence from Germany

Currently, companies spend a great deal of effort on Corporate Social Responsibility (CSR) disclosures. CSR disclosure relates to the provision of information on companies’ environmental and social performance. From an economic perspective, companies might disclose this information to avoid or decrease potential political costs. We construct a CSR disclosure index based on the Global Reporting Initiative (GRI) guidelines. Using content analysis, we analyze 130 listed German companies’ CSR disclosures (470 firm-year observations) to investigate the determinants of these voluntary disclosure activities. Our results show that, consistent with the political cost theory, German companies’ disclosures of all CSR issues are affected by their visibility, shareholder structure, and relationship with their US stakeholders. In addition, higher profitability is associated with more environmental disclosures. Finally, size and industry membership affect the amount of CSR disclosure.     

Shareholders and managers: Who care more about corporate diversity and employee benefits?

We test two competing theories that explain a firm’s engagement in corporate diversity and employee benefits: socially responsible investment theory and management overinvestment theory. We find that publicly-traded companies with strong shareholder rights are more likely to promote women and/or minorities to the positions of CEO and board of directors in their organizations, conduct business with women- and/or minority-owned operations, and provide better family benefits to their employees than firms with strong management power. These findings indicate that the companies with strong shareholder rights engage more actively in internal aspects of CSR activities, which supports the socially responsible investment theory rather than the management overinvestment theory. Shareholders (i.e. institutional investors) tend to integrate their social goals (i.e. internal CSR issues) and financial goals into their investments. In response to these changes, managers should engage in the internal aspects of corporate social issues more aggressively as the agents of shareholders.     

Socially and privately optimal shareholder activism

This paper aims to evaluate the private and social gains of shareholder activism in an optimal contracting framework involving dispersed shareholders who may become active. The social gains are based on the welfare to stake holders in the firm, whereas the private gains are based on shareholder wealth only. Active shareholders influence the contracting game with the CEO, and therefore also the size and the distribution of the surplus to be split between the shareholders and the CEO. Although the model is very simple and focussing on the creation and distribution of welfare between the shareholders and the CEO, we nonetheless identify surprising divergence between the private and social profitability of shareholder activism. Shareholder activism that is privately profitable is not necessarily socially profitable. The distributional effects of shareholder activism may dominate the efficiency effects to make shareholder activism a negative social NPV project.      

Corporate governance and social norms during financial crisis: evidence from France and Saudi Arabia

The resistance to financial crisis and compliance with social norms and effectiveness of corporate governance mechanisms is considered recently as a good matter of concern. Focusing on differences between French and Saudi firms, we examine the effect of (1) board of directors, (2) audit committee, (3) compliance with Corporate Social Responsibility activities, (4) compliance with Shariah principles on financial volatility during subprime crisis of 2007. We find that larger boards, larger audit committees, independent members on boards and audit committees are related negatively to financial volatility. The result supports corporate governance theory which suggests that corporate governance variables outlined provide effective of monitoring of the management thereby enhancing firm’s resistance to financial crisis. In addition, we find that compliance with CSR alone does not explain the financial volatility. Its concert with corporate governance variables is necessary. This result supports stakeholder theory which argues that companies compliant with CSR activities in their business strategy and have larger boards and audit committees, and independent directors on boards and audit committees resist more financial downturns and any economic shock. Furthermore, we find that compliance with Shariah norms plays a significant role in protecting shareholder interests, improving functioning of corporate governance mechanisms and affect positively the resistance of Saudi firms to financial crisis.     

Corporate Social Responsibility in Developing Countries as an Emerging Field of Study

Given the rising interest in corporate social responsibility (CSR) globally, its local expressions are as varied as they are increasingly visible in both developed and developing countries. This paper presents a multilevel review of the literature on CSR in developing countries and highlights the key differentiators and nuanced CSR‐related considerations that qualify it as a distinctive field of study. This review entails a content analysis of 452 articles spanning two‐and‐a‐half decades (1990–2015). Based on this comprehensive review, the authors identify the key differentiating attributes of the literature on CSR in developing countries in relation to depictions of how CSR is conceived or ‘CSR Thinking’ and depictions of how CSR is practiced and implemented or ‘CSR Doing’. The authors synthesize from there five key themes that capture the main aspects of variation in this literature, namely: (1) complex institutional antecedents within the national business system (NBS); (2) complex macro‐level antecedents outside the NBS; (3) the salience of multiple actors involved in formal and informal governance; (4) hybridized and other nuanced forms of CSR expressions; and (5) varied scope of developmental and detrimental CSR consequences. The paper concludes by accentuating how the nuanced forms of CSR in the developing world are invariably contextualized and locally shaped by multi‐level factors and actors embedded within wider formal and informal governance systems.     

Social Contagion of Risk Perceptions in Environmental Management Networks

An important requisite for improving risk communication practice related to contentious environmental issues is having a better theoretical understanding of how risk perceptions function in real‐world social systems. Our study applied Scherer and Cho's social network contagion theory of risk perception (SNCTRP) to cormorant management (a contentious environmental management issue) in the Great Lakes Basin to: (1) assess contagion effects on cormorant‐related risk perceptions and individual factors believed to influence those perceptions and (2) explore the extent of social contagion in a full network (consisting of interactions between and among experts and laypeople) and three “isolated” models separating different types of interactions from the full network (i.e., expert‐to‐expert, layperson‐to‐layperson, and expert‐to‐layperson). We conducted interviews and administered questionnaires with experts (e.g., natural resource professionals) and laypeople (e.g., recreational and commercial anglers, business owners, bird enthusiasts) engaged in cormorant management in northern Lake Huron (n = 115). Our findings generally support the SNCTRP; however, the scope and scale of social contagion varied considerably based on the variables (e.g., individual risk perception factors), actors (i.e., experts or laypeople), and interactions of interest. Contagion effects were identified more frequently, and were stronger, in the models containing interactions between experts and laypeople than in those models containing only interactions among experts or laypeople.     

Can Management Accounting Be Helpful for Young and Small Companies? Systematic Review of a Paradox

While management accounting (MA) implies potential benefits for large established companies, its usefulness for young and small companies is less clear. This review analyzes and partially resolves the paradox and provides a structured overview of present knowledge. A systematic literature search yielded 67 empirical papers in 25 journals. Drawing on the results of a two‐step coding process, this study proposes 20 novel second‐level constructs expressing the types of MA, their antecedents and their consequences in young and small companies. The main results show that, in discussing MA, the literature refers mainly to business planning, accounting‐based management control activities and financial accounting. Most studies find MA to be helpful for young and small companies because it provides tools to overcome difficulties arising from company growth and reduces information asymmetry with external partners. Overall, however, the empirical literature on this topic is highly concentrated, offers theoretical construct definitions of poor quality, and lacks a clear statement of what MA really does in young and small companies. Therefore, future research and theory development are warranted.     

Sustaining the Financial Value of Global CSR: Reconciling Corporate and Stakeholder Interests in a Less Regulated Environment

In this article we examine the association between corporate social responsibility (CSR) and firm value. This line of research is important since firms continue to invest in CSR even though past studies reveal a limited linkage between financial value and CSR. However, the business case for CSR or “doing good while making a profit,” appears to be advancing within the business ethics literature as a preferred conception of CSR. We conjecture that the greater unification and refinement of both profit maximization and stakeholder interests through corporate acts, not statements alone, will sustain the financial value of CSR in a less regulated global business environment. We study the triangle of what companies say, what companies do, and firm financial performance. We analyze Fortune 250 firms and find a positive association between what companies do based on KLD Research and Analytics, Inc. (KLD) ratings, and what companies state about ethics in their CSR statements. We then employ regression analysis and find that companies’ socially responsible acts are positively associated with overall firm value and financial performance. Yet we do not find a statistically significant association between what companies say regarding ethics in their CSR statements and their financial outcomes. These results suggest that firm value and financial performance is associated with what companies do and not what they say. Our results seem to be driven by multinational corporations (MNCs) and not by non‐MNCs. This is possibly because MNCs generally operate in a less regulated global business environment that often necessitates strong ethical corporate leadership to further stakeholder interests. Overall, these results help reconcile corporate and stakeholder objectives since evidence of a link between financial performance and doing good sustains global CSR.     

Does shareholder protection affect the performance of analysts as a gatekeeper?

This paper investigates the effect of shareholder protection on analysts’ performance. The important corporate governance role analysts can play by monitoring management has largely been ignored in the literature. Using a newly constructed index, we are for the first time able to analyse how changes in shareholder protection over time affect analysts’ performance as a gatekeeper. We find that strengthened shareholder protection improves analysts’ performance as a gatekeeper, i.e. analysts’ ability to reduce information asymmetry improves with strengthened shareholder protection. However, we also find a substitution effect: Strengthened shareholder protection makes analysts’ services less valuable to investors, thereby leading to a reduction in the number of analysts following firms.     

股利政策的股东财富效应:来自中国股市的经验证据

国内现有文献关于上市公司股利政策的研究,主要集中在股利政策的信号传递理论、代理成本理论和影响因素三个方面,对上市公司通过股利分配实现股东高回报率的股东财富效应研究较少,而国外从税收政策变化和税负差异的角度研究股利政策财富效应并不适合中国的情况。为此,本文基于我国上市公司股权分置的特殊治理结构,以2003-2004年所有分配股利的上市公司为样本,实证检验了我国上市公司股利政策的股东财富效应。研究表明,分配现金股利使非流通股股东实现高回报率,流通股股东获得股票股利的较高短期收益率。     

次大股东对过度投资影响研究——基于中国上市公司的经验证据

以我国2010年上市公司为研究对象,从次大股东的视角研究了次大股东对公司过度投资的作用。通过实证研究发现:在绝对控股股权结构下,次大股东不能对控股股东的投资行为发挥有效的监督作用;当次大股东为机构投资者时,不能减缓公司的过度投资现象。将负债分为高低2组,在高负债率组中,次大股东不能减缓公司的过度投资行为;在低负债率组中,次大股东能促进公司的过度投资行为。由此,我国上市公司的次大股东不能减缓公司的过度投资,其治理作用未能发挥。     

The Social Dimensions of Business Excellence

In an era of dynamic markets, globalisation, telecommunication and volatile stock markets, the board of directors of listed companies have grown familiar with the pressure of shareholders. Nowadays CEO's discus corporate responsible behaviour and sustainability more often. They feel the pressure of external stakeholders. They are aware of the increasing vulnerability of their corporate reputation, an increasing number of financial institutions start demanding social and environmental criteria — and it is more and more difficult to attract new talented people and at the same time, keeping existing employees satisfied. These developments make companies aware of the social dimensions of their organisation, their corporate identity, their role within society and their duty towards future generations.The business environment is beginning to accept that prosperity, profitability and shareholder value alone do not represent the value of the company. The companies’ ability to grow and to improve continuously is also determined by its social competences, ethical responsibility and environmental contributions. This shift of focus leads to a reorientation of the concept of business excellence. At first, quality management focused on the quality improvement of products and services, later on the processes providing these products. Quality was renamed into business excellence when corporations oriented themselves on the quality of the organisation and the chain (or network or hub) in which it operates. With the present challenges at hand, companies are beginning to focus on the quality of society while taking care of their core businesses, an objective that transcends and includes the former quality orientations.This article first introduces the European Business Excellence Model (EFQM model), which have facilitated the transformation toward an integral management approach, including openings to corporate social responsibility (CSR). We will than elaborate on the cultural context of companies engaged in CSR and social responsible investing (SRI) activities. We will end this article with an overview of CSR activities, structured according the EFQM model.     

The Origin and Role of Trust in Local Policy Elites’ Perceptions of High‐Voltage Power Line Installations in the State of Arkansas

The debate over an installation of high‐voltage power lines (HVPLs) has been intense, particularly in northwest Arkansas. Detractors claim that the installation will negatively affect both the natural environment and the local economy, which contains a large tourism component. By contrast, those in favor of installing HVPLs claim that the installation is necessary in order to reliably support the increasing demand for electric power. Using original data collected from a recent statewide Internet survey of 420 local policy elites in Arkansas, this article focuses on two key aspects. First, we examine how local policy elites’ perceptions of risks versus benefits of HVPL installation in their communities are influenced by their levels of trust toward information provided by various sources (e.g., energy industry, environmental groups, and government). Second, we utilize cultural theory to explain how the cultural worldviews of policy elites––specifically, egalitarianism, individualism, hierarchism, and fatalism––shape these levels of trust and HVPL benefit‐risk perceptions, while controlling for other factors claimed by previous literature, including levels of knowledge on energy‐related issues and demographic characteristics. In general, our analysis indicates that policy elites’ value‐oriented formation of HVPL benefit‐risk perceptions is partially due to the influence cultural values have on trust in information sources. We conclude this article by discussing broader implications for the origin and role of trust in policy elites’ decisions throughout the policy‐making process.     

Continued usage of technology versus situational factors: An empirical analysis

Mainstream technology management literature suggests that research on continued usage of technology is largely based on two perspectives, namely (i) a forward-looking perspective that underpins the technology acceptance model (TAM), and (ii) a retrospective perspective that is based on the expectation disconfirmation theory (EDT). We propose an extended framework to re-examine continued usage of technology by combining these two perspectives and incorporating individual, social and environmental factors as additional variables. Our study, in the context of users’ continued usage of e-learning tools, reveals that in addition to user satisfaction and perceived usefulness, self-efficacy, system service support and social pressure are significant factors that affect continued usage of technology. Our findings enrich the theoretical framework of continued usage of technology, and provide e-learning developers with managerial insights on how to entice learners to continue using their e-learning tools.     

Age Work in Organizations: Maintaining and Disrupting Institutionalized Understandings of Higher Age

Age diversity research calls for new approaches in explaining the persistence of age inequalities, which integrate different levels of analysis and display greater context sensitivity. Concurrently, neoinstitutionalist research interested in social inequalities calls for merging institutional theory with critical perspectives and to account for issues of power. In this study, we address the calls of both research streams through developing the concept of ‘age work’: the institutional work actors undertake on age as a social institution. Applying our novel concept to a multi‐actor study of four German organizations known for their age management, we come across a counterintuitive insight regarding actors’ age work: maintaining stereotypical age images can serve to counter age inequalities, whereas deconstructing age images can reinforce age inequalities. The multi‐actor perspective of our study allows us to categorize different forms of power‐laden and interest‐driven age work and to portray the reproduction of age inequalities as a result of actors’ age work, embedded in different contexts and complex power relations. Comparing employees’ forms of age work across sectors and organizations, we detail how notions of masculinity as well as income and job security shaped the categorized forms of age work.     

Bringing About Changes to Corporate Social Policy through Shareholder Activism: Filers,Issues, Targets,and Success

We examine shareholder initiated social policy proposals' capacity to exert pressure on management to force it to adopt the suggested changes in policy. We show that social proposals, filed under the U.S. Securities and Exchange Commission's Rule 14a‐8, have a more limited capacity to change corporate social policy than it has been previously reported. However, the capacity to exert pressure on firms can be substantially higher for some types of filers, notably pension funds and mutual funds. The analysis also suggests that the capacity to influence management is higher for some types of issues presented in the resolution, such as those related to board diversity, energy and environment, and international laborand human rights. We also provide suggestions explaining why shareholder activism is a persistent practice despite its limited results.     

Resist or Comply: The Power Dynamics of Organizational Routines during Mergers

The role of power and agency in the development of organizational routines is under‐theorized. In this paper, we draw on an in‐depth qualitative case study of a merger between two academic institutions, a college of art and a university, and examine the diverging responses of two organizational routines (admissions and budgeting) during the course of the merger to understand how power dynamics contribute to resistance/compliance of routines. Our findings suggest that the differences in routines’ responses to a merger initiative can be explained by applying Bourdieu's theory of practice and by employing the concepts of field and symbolic capital to unpack power relations in the context of organizational routines, and to disclose why some routine participants can exercise their agency while others cannot. We find that (a) the field within which a routine operates and (b) the actors’ symbolic capital and position‐taking during change implementation shape routines’ responses to organizational change initiatives.     

资本结构与企业财权安排：基于利益相关者理论研究

礼仪相关者理论是现代公司治理理论的重要组成部分。基于该理论的基本思想的研究表明,在现代市场经济条件下,企业资本结构是股东投入的股权资本、债权人投入的债务资本、经营者和一般职工投入的人力资本、供应商和客户投入的市场资本、政府投入的公共环境资本等财务资本和非财务资本构成的共同合约;以此为基础,企业财权安排要平等地对待各利益相关者,在企业财务方面要建立共同治理和相机治理相结合的治理结构,以实现各利益相关者的产权权益,提高企业财务的决策效率和治理效率。     

Is it All About Money? – Affective Commitment and the Difference Between Family and Non‐family Sellers in Buyouts

In this paper we investigate private equity firm perceptions of sellers’ affective deal commitment in buyout transactions. Using a sample of 174 buyouts, we test trust, goal congruence and private equity reputation as potential antecedents of perceived deal commitment. We also examine whether and how different types of sellers, family versus non‐family firms, moderate sources of perceived affective deal commitment. In sum, we find evidence that non‐financial factors play a role in buyouts, particularly for family firm sellers.