This study focuses on how and why firms strategically respond to government signals appropriate corporate activity. We integrate institutional theory with research political strategy develop a dependence model that explains (a) different types of dependency the lead issue social responsibility (CSR) reports (b) risk governmental monitoring affects extent which CSR are symbolic or substantive. First, we examine firm characteristics reflecting government—including private versus state...

Corporate philanthropy is expected to positively affect firm financial performance because it helps firms gain sociopolitical legitimacy, which enables them elicit positive stakeholder responses and political access. The philanthropy-performance relationship stronger for with greater public visibility those better past performance, as by these gains more responses. Firms that are not government-owned or politically well connected were shown benefit from philanthropy, gaining resources...

Grounded in the upper echelons perspective and stakeholder theory, this study establishes a link between CEO hubris corporate social responsibility (CSR). We first develop theoretical argument that is negatively related to firm's socially responsible activities but positively its irresponsible activities. then explore boundary conditions of effects how these relationships are moderated by resource dependence mechanisms. With longitudinal dataset S&P 1500 index firms for period 2001–2010, we...

This paper advances the risk management perspective that superior social performance enhances firm value by serving as an ex ante valuable insurance mechanism. We posit good is more mechanism for firms with higher litigation risks. Moreover, generation of corporate ( CSP ) depends on whether a has gained pragmatic legitimacy (i.e., firm's financial health) and moral or not operates in socially contested industry) among its stakeholders. find against practically significant, adding 2 to 4...

We attempt to provide a more nuanced view of the relationship between corporate social responsibility (CSR) and firm financial performance using competitive-action perspective. argue that competitive action should be considered as an important contingency determines effects CSR activities on performance. Using data for 113 publicly listed U.S. firms in software industry 2000 2005, we found socially responsible (positive CSR) enhance when firm’s level is high, whereas irresponsible (negative...

Abstract While conflicts (cognitive and affective) have been considered as important process variables to better understand the mixed findings on relationship between top management team functional diversity organizational innovation, such an input‐process‐outcome model is still incomplete without considering environmental factors. This study was formulated assess importance of both competitive institutional environments in moderating upper echelon effects within a transition economy. The...

The principal‐principal perspective is tested and extended in the context of corporate takeovers Chinese publicly listed firms from 1998 to 2007. resistance a target firm's controlling shareholder toward potential reflects conflict between principal minority shareholders. It was found that this weakens when are located regions with more institutional development, where shareholders' interests better protected. also decreases for CEOs who politically connected, as these may be interested...

Research summary : A firm's strategic investments in knowledge‐based assets through research and development ( R&D ) can generate economic rents for the firm, thus are expected to affect positively a financial performance. However, weak protection of minority shareholders, property rights, ineffective law enforcement allow those be appropriated disproportionately by powerful insiders such as large owners top managers. Recent data on Chinese publicly listed firms during 2007–2012 were...

Abstract Research summary This study examines the impact of financial analysts on a firm's corporate social performance (CSP). We integrate research time horizons with stakeholder theory and argue that, in response to short‐term pressure from analysts, firms their managers become more focused limit investment socially responsible activities. Using broker mergers closures United States as exogenous shocks analyst coverage difference‐in‐differences design, we find that an decrease leads better...

Research shows that CEOs who are sensitive to maximizing gains (promotion focus) engage in more socially oriented initiatives, while avoiding losses or harm (prevention attend shareholder concerns. Our point of departure, however, is many social initiatives the “do no harm” type involve efforts avoid burdening stakeholders with and economic costs. Integrating research on strategic leadership regulatory focus, we develop a framework for understanding relevance CEO focus workplace safety. We...

From an organizational learning perspective, we argue that the information signaled by distribution attributes of foreign investors already operating in a location will influence entry decisions later arrivals affecting their level confidence imitating. In context investment decisions, proportion experienced firms was shown to first increase follower firm's about imitating them, but then decrease it, due anticipated competition. The impact from target organizations also varies with...

We advance a multistakeholder framework that highlights the influence of stakeholders in tempering short-termist responses to capital market pressures. When firms face pressure from short sellers market, they sometimes shift attention short-term stock performance and neglect critical investments pay off long run. Relying on quasi-natural experiment establishment-level data workplace injuries, we find short-selling causes an increase employee injuries. Critically, however, degree which...

We investigate why employee-friendly firms often benefit from lower costs of debt financing. theorize that banks use employee treatment as a screen to assess firms’ trustworthiness, which encompasses not only confidence in ability perform well but also the belief they will act with good intent toward their creditors. integrate screening theory and stakeholder explain the—oftentimes unintended—consequences actions employees have on relationships other stakeholders. An analysis U.S. between...

A core issue in stakeholder theory is how firms can engender joint interests among competing stakeholders. We draw on theories of normative influence and reciprocity to identify positively the relations between their internal external propose that send credible corporate signals, such as philanthropy sustainability reporting, exert social employees, but employees’ own treatment by firm career prospects are also important shaping behavior toward community. investigate these arguments context...

Abstract This study investigates the influence of ascribed and achieved political connections on corporate strategies incremental versus radical innovation. The strategy literature maintains that while politically connected firms have access to resources controlled by government, they also an obligation reciprocate for this fulfilling government expectations. We integrate institutional perspective with develop argument enhance innovation because these will tend innovate just enough meet In...