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1 – 10 of 75
Article
Publication date: 22 June 2022

Li (Lily) Zheng Brooks and Jean B. McGuire

This study aims to investigate the cross-sectional differences on the association between corporate social responsibility (CSR) and future bankruptcy along the dimensions of…

Abstract

Purpose

This study aims to investigate the cross-sectional differences on the association between corporate social responsibility (CSR) and future bankruptcy along the dimensions of political connection and corporate governance strength. This study intends to provide evidence on the tangible benefits for firms to invest in social capital of CSR activities and offer insights on what firms may benefit more from CSR expenditure.

Design/methodology/approach

Running a logistic regression on the determinants of bankruptcy model after controlling for financial stress factors based on prior literature, this study examines the moderating effect of political connection and corporate governance on the association between corporate social responsibility and future bankruptcy.

Findings

Current study documents that the negative association between corporate social responsibility and future bankruptcy is only significant for politically connected firms, but insignificant for non-politically connected firms. Specifically, the authors find that one standard deviation increase of CSR expenditure significantly reduces the propensity of future bankruptcy by 53.20% for politically-connected firms. Conversely, the negative relation between CSR only exits for firms with weak corporate governance but do not exit for firms with strong corporate governance.

Research limitations/implications

Current study provides evidence on the tangible benefits for firms to invest in social capital of CSR activities and offers additional insights on what firms may benefit more from CSR expenditure.

Originality/value

Current study extends the research to examine the cross-sectional variations in the negative association between CSR performance and the propensity of bankruptcy. The positive moderating effect of political connection on CSR and bankruptcy suggests that political connection and CSR are complements in reducing the propensity of future bankruptcy. A more pronounced negative association between CSR and bankruptcy for firms with weaker governance suggests that firms with weak corporate governance benefits more in engaging CSR activities than firms with strong corporate governance.

Details

Meditari Accountancy Research, vol. 31 no. 5
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 1 April 1988

Jean B. McGuire

Jean McGuire is Associate Professor of Management in the Faculty of Commerce at Concordia University, Montreal. She received her Pd.D. degree from Cornell University. Her research…

1272

Abstract

Jean McGuire is Associate Professor of Management in the Faculty of Commerce at Concordia University, Montreal. She received her Pd.D. degree from Cornell University. Her research interests include organizational power, politics and conflict, executive compensation, and the measurement of firm performance.

Details

Managerial Finance, vol. 14 no. 4
Type: Research Article
ISSN: 0307-4358

Article
Publication date: 1 February 1997

Jean McGuire

The relationship between the clarity of proxy statement presentation of executive compensation, the level of compensation and firm performance was examined Consistent with the…

Abstract

The relationship between the clarity of proxy statement presentation of executive compensation, the level of compensation and firm performance was examined Consistent with the argument that firms attempt to avoid potential threats to legitimacy, clarity of presentation and the level of executive compensation were negatively related. There was no relation between firm performance and presentation clarity. Management stock ownership was not related to clarity of presentation.

Details

The International Journal of Organizational Analysis, vol. 5 no. 2
Type: Research Article
ISSN: 1055-3185

Article
Publication date: 30 November 2005

Shamsud D. Chowdhury

This study is an attempt to verify the mostly anecdotal or case‐based assertions regarding the imperviousness of Japanese management to the threats of large institutional…

Abstract

This study is an attempt to verify the mostly anecdotal or case‐based assertions regarding the imperviousness of Japanese management to the threats of large institutional stockholders. Using data drawn from 118 corporations in five industry sectors, and applying an econometric technique, we propose to verify the differences, if any, in the relationship of a set of eight firmlevel strategic attributes and corporate efficiency across two distinct institutional ownership settings: high versus low. The test results reveal a structural homogeneity across both settings, suggesting that Japanese managers are independent of pressures from institutional owners across high and low levels of ownership. The study’s academic and managerial implications are also given.

Details

International Journal of Commerce and Management, vol. 15 no. 3/4
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 15 June 2015

Martin R. W. Hiebl

How family businesses (FBs) manage to survive in the long term is still not well understood in FB research. A promising concept to explain survivability, that is currently heavily…

1792

Abstract

Purpose

How family businesses (FBs) manage to survive in the long term is still not well understood in FB research. A promising concept to explain survivability, that is currently heavily discussed in the management literature is organizational ambidexterity (OA) – the ability to balance exploring and exploiting activities at the same time. However, FB research has not yet taken sufficient advantage of the potential of OA to contribute to explaining the ability of later-generation FBs to survive. The paper aims to discuss this issue.

Design/methodology/approach

Using central tenets of agency theory, this conceptual paper draws together findings from the FB literature and the OA literature to create a framework for the relationship between family involvement and the ability to reach high levels of OA.

Findings

Seven propositions are developed which suggest that the level of family involvement in ownership and management affect the ability of later-generation FBs to reach high levels of OA. They further suggest that the number of family shareholders, the existence of majority family shareholders, and generational involvement of the controlling family in management moderate these relationships.

Originality/value

This is the first paper to theoretically analyze OA in later-generation FBs. The seven propositions and avenues for further research presented in this paper are intended to motivate FB research to take a closer look at OA. This may be crucial to better explaining and predicting one of business-owning families’ most important goals: the long-term survival of the FB.

Details

Management Decision, vol. 53 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 April 1993

Blake E. Ashforth

Two models of organizational behavior are reviewed. The apolitical model describes a relatively stable and centralized monolith, while the political model describes a potentially…

Abstract

Two models of organizational behavior are reviewed. The apolitical model describes a relatively stable and centralized monolith, while the political model describes a potentially unstable federation of self‐interested parties. It is argued that the apolitical model is largely predicated on social and generalized exchange and forces for stability, while the political model is largely predicated on economic and dyadic exchange and forces for instability. It is further argued that the contradictions inherent in these forces help fuel evolutionary change (where the apolitical model becomes most salient), punctuated by revolutionary change (where the political model becomes most salient). Thus, the two models apply simultaneously to organizational action, suggesting that the organization can be seen as both a stable monolith and an unstable coalition.

Details

The International Journal of Organizational Analysis, vol. 1 no. 4
Type: Research Article
ISSN: 1055-3185

Article
Publication date: 5 June 2017

Mario Krenn

This study aims to examine the effects of competing influences emanating from firms’ social structural context (i.e. sent and received board of director interlocks and industry…

Abstract

Purpose

This study aims to examine the effects of competing influences emanating from firms’ social structural context (i.e. sent and received board of director interlocks and industry peers) on the adoption of an institutionally contested corporate governance code provision.

Design/methodology/approach

The corporate governance code provision of interest in this research recommends that German firms listed on German stock exchanges should disclose the individual remuneration arrangements for their board members. This paper uses 945 firm year observations from 2002 to 2006, the time period during which the adoption of this provision was voluntary for firms, to examine the role of firms’ social structural context in the legitimization process of this provision.

Findings

The results show that sent board interlocks to firms that defy pressures to adopt this practice have an equally pronounced but opposing effect on its institutionalization process. Received interlocks are inconsequential in this process. The results also provide evidence for the existence of competing influences emanating from firms’ industry peers. In contrast to the effects associated with sent board interlocks, at the industry level, peer acquiescence has a more pronounced effect than peer defiance. Furthermore, the practice’s legitimacy among firms’ peers moderates the effects of sent board interlocks.

Originality/value

The results of this paper suggest that a balanced approach to studying institutional change in corporate governance needs to acknowledge the co-existence of conflicting signals regarding the spread of new institutional models. The findings suggest that firms’ social structural context plays a central role in processes of contested institutional change. Board interlocks and industry peers carry the potential to facilitate institutional change and facilitate institutional continuity and resistance to change. However, not all board interlocks are of equal importance, and industry peers constitute a source of legitimacy to which directors forming the interlocks attend.

Details

Corporate Governance: The International Journal of Business in Society, vol. 17 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 12 September 2016

Josh Bendickson, Jeff Muldoon, Eric W. Liguori and Phillip E. Davis

By revisiting the agency theory literature, this paper aims to both incrementally advance historical viewpoints and reveal four prominent influences on agency theory: Weber and…

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Abstract

Purpose

By revisiting the agency theory literature, this paper aims to both incrementally advance historical viewpoints and reveal four prominent influences on agency theory: Weber and Simon, The Great Depression, Cooperation and the Chicago School. This is critical given that understanding the history behind the authors’ major theoretical lenses is fundamental to using these theories to explain various phenomena.

Design/methodology/approach

Drawing on a plethora of archival sources and following the influence-mapping approach used by other management history scholars, this manuscript synthesizes historical accounts and archival information to provide a clearer picture of the major historical influences in the formation of agency theory.

Findings

We shed light on four areas related to management history that helped propel agency theory. Whereas past scholarship has not recognised them as influencers, we find and show how the industrial revolution, unionization, the stock exchange and other management approaches all played a role in the development of agency theory’s core tenants.

Originality/value

We extend upon the influential people and events that shaped agency theory, thus providing a fuller understanding of the theory’s usefulness. Moreover, we fill in gaps enabling scholars to better understand the context in which the core tenants of agency theory were developed.

Details

Journal of Management History, vol. 22 no. 4
Type: Research Article
ISSN: 1751-1348

Keywords

Article
Publication date: 8 February 2016

Josh Bendickson, Jeff Muldoon, Eric Liguori and Phillip E Davis

Theories develop over time and are influenced by both events and people. Looking primarily at the applications between contracting principal-agent relationships, the purpose of…

11804

Abstract

Purpose

Theories develop over time and are influenced by both events and people. Looking primarily at the applications between contracting principal-agent relationships, the purpose of this paper is to explore how agency theory emerged from a number of economic and social developments. In doing so, the authors explain how this once dominant theory comes up short regarding varying realms of entrepreneurship as well as with multiple modern business phenomena.

Design/methodology/approach

The authors first present a brief overview of agency theory. Second, the authors identify major events and people and address how they impacted the development of agency theory. Third, the authors provide insights on agency theory across three contexts (strategic entrepreneurship, social entrepreneurship, and family business). Implications, limitations, and future research directions are then offered.

Findings

The authors provide a deeper understanding of agency theory, thus broadening its underpinnings and enabling readers to more readily understand why agency theory is limited in its explanation of certain and modern business phenomena. The authors find that some of the seminal influences to agency theory are quite dated which has limited its explanatory power in terms of the modern day business and with more recent disciplines such as entrepreneurship.

Research limitations/implications

The authors are limited by their choices of major events that influenced agency theory at the expense of not being able to include everything that may have impacted the theory over time. These limitations, however, are offset by the research implications. As the authors highlight the underpinning of agency theory, the authors subsequently provide scholars and practitioners with five primary boundary conditions, each of which are in need of attention for agency theory to maintain relevant explanatory power.

Originality/value

A deeper understanding of agency theory can be gained by looking at its underpinnings. By presenting numerous principal-agent conflicts and demonstrating areas in which it has fallen short (i.e. entrepreneurship and more recent business phenomenon), we shed light on the obstacles agency theory must overcome in order to maintain its position as a prominent theory.

Details

Management Decision, vol. 54 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 21 November 2023

Jean-François Toti and Andrea Milena Sánchez Romero

The purpose of this paper is to examine the effect of subjective ambivalence on ethical consumption behaviors and the role of ethical claims in reducing feelings of ambivalence…

Abstract

Purpose

The purpose of this paper is to examine the effect of subjective ambivalence on ethical consumption behaviors and the role of ethical claims in reducing feelings of ambivalence toward buying ethical products.

Design/methodology/approach

The authors conducted two studies. In study 1, the authors carried out an online survey with a sample of 230 French consumers. The authors applied structural equation modeling with Amos to test the relationships among skepticism, ambivalence and ethical consumption behaviors. Study 2 is an experimental design in which the authors manipulated ethical claims (low – few ethical arguments vs. high – many ethical arguments) in advertising (176 French panelists). The authors tested the relationships among consumer ethical sensitivity, perceived brand ethicality, skepticism, ambivalence and intention to purchase an ethical product, depending on ethical claims in advertising.

Findings

Study 1 shows that skepticism toward advertising of ethical products amplifies feelings of ambivalence and that ambivalence reduces consumers’ willingness to adopt ethical consumption behaviors. Study 2 shows that strong claims in advertising of ethical products reduce skepticism toward advertising of ethical products and feelings of ambivalence toward buying an ethical product through perceived brand ethicality, with consumers’ ethical sensitivity positively moderating these relationships.

Research limitations/implications

The two studies explore only one form of ambivalence (i.e. subjective), and the experimental study focuses on a single category of products.

Practical implications

The findings highlight the difficulties in promoting ethical products. Consumers need to know if a product is “really” ethical, as they may feel ambivalent toward that product. This paper shows that strong ethical claims in advertising ethical products significantly help to overcome this barrier.

Originality/value

Based on attribution theory and persuasion models, this research reveals how ethical claims in advertising affect feelings of ambivalence, which negatively influence consumers’ willingness to adopt ethical consumption. In addition, it follows a holistic approach to ethical consumption behaviors to explore consumers’ ambivalence.

Details

European Journal of Marketing, vol. 57 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

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