Value Relevance of Stakeholder Engagement: The Influence of National Culture

• DOI: 10.1002/csr.1390
• Publication Date: 2016-10-07T08:20:05Z
• Authors: Lorenzo Dal Maso; Giovanni Liberatore; Francesco Mazzi
• Keywords: Embeddedness; Relevance; Stakeholder Engagement; Equity; Value (mathematics); Equity value

Abstract Our study investigates whether stakeholder engagement is associated with a firm's valuation and the value relevance of accounting earnings. Since prior literature posits that economic consequences such practices may depend on specific environment in which they are adopted, we also explore these associations affected by cultural traits country firm operates. Based worldwide sample firms for period 2002 to 2014, document positively influences market‐to‐book equity, without enhancing Drawing Schwartz's framework, show results hold only countries low (high) level embeddedness hierarchy (mastery). contributes exploring non‐financial information importance institutional characteristics outcomes. Copyright © 2016 John Wiley & Sons, Ltd ERP Environment