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Showing papers on "Corporate governance published in 2021"


Journal ArticleDOI
TL;DR: The pandemic-induced drop in stock returns was milder among firms with stronger pre-2020 finances, and firms controlled by families, large corporations, and governments performed better, and those with greater ownership by hedge funds and other asset management companies performed worse.

456 citations


Journal ArticleDOI
TL;DR: The authors reviewed the financial economics-based research on Environmental, Social, Social and Governance (ESG) and Corporate Social Responsibility (CSR) with an emphasis on corporate finance.

423 citations


Journal ArticleDOI
TL;DR: In this article, the authors examined whether a firm's financial performance is associated with superior environmental, social and governance (ESG) scores in emerging markets of multinationals in Latin America.
Abstract: This paper examines whether a firm’s financial performance (FP) is associated with superior environmental, social and governance (ESG) scores in emerging markets of multinationals in Latin America. The study addresses the current research gap on this issue; it develops hypotheses and tests them by applying linear regressions with a data panel drawn from the Thomson Reuters Eikon™ database to analyse data on 104 multinationals from Brazil, Chile, Colombia, Mexico and Peru between 2011 and 2015. The results suggest that the relationship between the ESG score and FP is significantly statistically negative. Furthermore, in examining environmental, social and governance separately to accurately determine each variable’s relationship to multilatinas’ FP, the results reveal a negative relationship. Finally, the empirical analysis provides evidence for a moderating effect of financial slack and geographic international diversification on the relationship between ESG dimensions and firms’ FP. This study furthers understanding of the relationship between ESG dimensions and FP for the Latin American business context.

278 citations


Journal ArticleDOI
TL;DR: In this paper, the authors analyzed how the board characteristics could be associated with globally corporate social responsibility CSR and specific areas of CSR, and found that diversity in boards and diversity of boards globally are positively associated with corporate social performance.
Abstract: This study analyzes how the board’s characteristics could be associated with globally corporate social responsibility CSR and specific areas of CSR. It is drawn on all listed firms, in 2016, on the SBF120 between 2003 and 2016. Our results provide strong evidence that diversity in boards and diversity of boards globally are positively associated with corporate social performance. However, they influence differently specific dimensions of CSR performance. First, we show that large boards are positively associated with all areas of CSR performance, while specific and overall CSR scores are negatively associated with CEO-chair structures. Second, board gender diversity is positively associated with human rights and corporate governance dimensions. Third, age diversity is positively associated with corporate governance, human resources, human rights, and environmental activities. Also, our results provide evidence that outside directors care about CSR performance. Specifically, the presence of foreign directors is positively associated with environmental performance and community involvement, whereas CSR-Governance dimension is positively associated with the presence of independent directors. Regarding the director’s educational level, post-graduated directors are positively and significantly associated with overall CSR score and all CSR sub-scores, except the corporate governance one. When directors have multiple directorships, they are more concerned about human resources, environmental performance, and business ethics. Finally, our findings are robust only in non-family firms. In fact, family boards are less diverse than non-family ones; specifically, they have a lower number of independent, foreign, and high-educated directors.

161 citations


Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of environmental, social and governance (ESG) certification on Malaysian firms and found that ESG certification lowers a firm's cost of capital, while Tobin's Q increases significantly.

131 citations


Journal ArticleDOI
TL;DR: In this article, the authors identify four key areas where CSR research has been challenged by COVID-19, including stakeholders, societal risk, supply chain responsibility, and the political economy of CSR.
Abstract: Research on corporate social responsibility (CSR) flourished pre-COVD-19 and could reasonably claim to be one of the most widely read and cited sub-fields of management. However, the pandemic has clearly challenged a number of existing CSR assumptions, concepts, and practices. We aim to identify four key areas where CSR research has been challenged by COVID-19 – stakeholders, societal risk, supply chain responsibility, and the political economy of CSR – and propose how future CSR research should be realigned to tackle them.

127 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigate the effects related to the transposition of Directive 2014/95/EU by analyzing firm-level, governance-level and report-level determinants of business reporting on the sustainable development goals (SDGs).
Abstract: Within the 2030 Agenda, the United Nations have explicitly required that the Member States introduce within their jurisdictions new forms of regulations about non‐financial reporting practices. The aim of this paper is to investigate the effects related to the transposition of Directive 2014/95/EU by analyzing firm‐level, governance‐level, and report‐level determinants of business reporting on the Sustainable Development Goals (SDGs). To conduct such an analysis, this study defines and introduces the SDG Reporting Score (SRS)—a qualitative proxy representing a firm orientation toward SDG reporting. The study sample includes the non‐financial reports of 153 Italian Public Interest Entities. The results show a positive relationship between a firm's SRS and various determinants, such as the presence of independent directors on the board, expertise with non‐financial reporting, and length of the report. Finally, the highest levels of SRS are achieved by firms operating in environmental sensitive sectors.

125 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigate the effect of stock market liberalization on technological innovation and find that these economies exhibit a higher level of innovation output after liberalization and that this effect is disproportionately stronger in more innovative industries.

122 citations


Journal ArticleDOI
TL;DR: In this paper, the authors present robust evidence that once industry affiliation, market-based measures of risk and accounting based measures of performance, financial position and intangibles investments have been controlled for, ESG offers no such positive explanatory power for returns during the COVID crisis, and that ESG is insignificant in fully specified returns regressions for each of the Q1 2020 COVID market crisis period and for the full COVID year of 2020.
Abstract: Environmental, social and governance (“ESG”) scores have been widely touted as indicators of share price resilience during the COVID-19 crisis Contrary to this conventional wisdom, we present robust evidence that once industry affiliation, market-based measures of risk and accounting-based measures of performance, financial position and intangibles investments have been controlled for, ESG offers no such positive explanatory power for returns during the COVID crisis Specifically, ESG is insignificant in fully specified returns regressions for each of the Q1 2020 COVID market crisis period and for the full COVID year of 2020 By contrast, a measure of the firm's stock of investments in internally generated intangible assets is an economically and statistically significant positive determinant of returns during each of the Q1 market implosion and full 2020 COVID year periods Our results are robust to alternative measures of returns, as well as for using Refinitiv, Refinitiv II and MSCI data to capture ESG performance We conclude that ESG did not immunize stocks during the COVID-19 crisis, but those investments in intangible assets did © 2021 The Authors Journal of Business Finance & Accounting published by John Wiley & Sons Ltd

119 citations


Journal ArticleDOI
TL;DR: In this article, the authors examine the call for harmonization of sustainability reporting frameworks and standards that occurred alongside an increase in environmental, social and governance (ESG) investing during the COVID-19 pandemic.

116 citations


Journal ArticleDOI
TL;DR: This paper reviewed alternative accounts for the relationship between ESG performance and corporate financial performance and found that the weight of empirical evidence shows a positive, statistically significant but economically modest ESGP-CFP link, consistent with theoretical expectations.
Abstract: Interest in why firms conduct environmental, social and governance (ESG) activity is longstanding and increasing. Our understanding, however, remains fragmented with alternative accounts that seek to explain the relationship between ESG performance (ESGP) and corporate financial performance (CFP). This paper reviews alternative accounts for the relationship and finds that the weight of empirical evidence shows a positive, statistically significant but economically modest ESGP-CFP link, consistent with theoretical expectations. This economically modest relationship suggests ESG activity is unlikely to be primarily motivated by narrow measures of CFP. Further scholarship viewing ESG as part of overall firm activity would be constructive.

Journal ArticleDOI
TL;DR: A multilayered TOE-based risk management framework is proposed to identify and manage the risks associated with smart city governance in the current study, and the criticality of the identified risks can help researchers and practitioners understand the top risks of smart city Governance.

BookDOI
02 Apr 2021
TL;DR: Collaborative Governance is the first comprehensive practice-based textbook on the topic, presenting a solid grounding in relevant theory while also focusing on case studies, process design, and practical tools as mentioned in this paper.
Abstract: Traditional governance, even when it is functioning effectively and fairly, often produces clear winners and clear losers, leaving smoldering resentments that flare up whenever there is a shift in the balance of power. Over the past two and a half decades, a new style of governance has arisen to disrupt some of that winner-takes-all dynamic, offering parties a means to collectively navigate their interests in a highly focused and democratic way. Collaborative Governance is the first comprehensive practice-based textbook on the topic, presenting a solid grounding in relevant theory while also focusing on case studies, process design, and practical tools. Bringing together theory and tools from the fields of negotiation and mediation, as well as political science and public administration, this book introduces students and practitioners to the theory of collaborative governance in the context of practical applications. Coverage includes: • A connection of the practices of collaborative governance with the field’s theoretical underpinnings; • Tools for students and practitioners of collaborative governance—as well as public administrators and other possible participants in collaborative governance processes—to discern when collaborative governance is appropriate in politically complex, real-world settings; • A roadmap for students, practitioners, and process participants to help them design—and effectively participate in—productive, efficient, and fair collaborative governance processes; • An exploration of constitutional democracy and the ways in which collaborative governance can be used as a tool in building a more just, fair, and functional society. Collaborative Governance is an ideal primary textbook in public administration, planning, and political science courses, as well as a jargon-free primer for professionals looking to learn more about the theory and practice of this important field.

Journal ArticleDOI
TL;DR: A systematic review of existing literature on the implications of the use of Artificial Intelligence (AI) in public governance and a research agenda are presented, which calls for research into managing the risks of AI use in the public sector, governance modes possible for AI Use in thePublic sector, performance and impact measurement ofAI use in government, and impact evaluation of scaling-up AI usage in thepublic sector.

Journal ArticleDOI
TL;DR: In this article, a systematic literature review was employed using Scopus and Web of Science databases, covering all publications until May 2020, which resulted in 91 studies from 66 top-ranked journals in accounting, finance, and economic fields.
Abstract: Going beyond the mere gender diversity in the boardroom, this systematic review comprehensively covers the research on board diversity of financial institutions. More specifically, we cover gender diversity, as well as other characteristics of diversity, such as nationality, age, tenure, experience, education, ethnicity, and religion. A systematic literature review was employed using Scopus and Web of Science databases, covering all publications until May 2020, which resulted in 91 studies from 66 top-ranked journals in accounting, finance, and economic fields. We analyze them based on the journal, methodology, research construct questions, and theoretical perspectives. Our results highlight the substantial knowledge gaps and the inconsistent findings of prior studies on several aspects of the field, suggesting avenues for further studies in terms of research designs, settings, scope, and theories. We argue that there is a need to explore other board diversity attributes rather than focusing on the gender diversity of the boards of financial institutions to achieve sustainable development. Also, more work is outlined on topics related to board diversity of financial firms that receive limited attention from scholars, such as (but not limited to) environmental performance, capital structure, intellectual capital, innovation and earnings quality of financial institutions, as well as the indirect effect of policy settings.

Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper examined the effect of governance structures on Chinese firms' environmental performance, and consequently ascertain the extent to which the financial performance-environmental performance nexus is moderated by governance mechanisms.
Abstract: This study seeks to contribute to the existing business strategy and the environment literature by examining the effect of governance structures on Chinese firms' environmental performance, and consequently ascertain the extent to which the financial performance–environmental performance nexus is moderated by governance mechanisms. Using a sample of Chinese companies from heavily polluting industries over a 5‐year period, our baseline findings suggest that, on average, board size and governing board meetings are positively associated with Chinese firms' environmental performance, whilst board independence and gender diversity have positive, but insignificant association with firms' environmental performance. Our evidence suggests further that the examined internal governance mechanisms have a mixed moderating effect on the link between financial performance and environmental performance. Our findings have important implications for company executives, environmental activists, policy‐makers, and regulators. Our results support insights drawn from agency, resource dependence, stakeholder, and legitimacy theories.

Journal ArticleDOI
TL;DR: In this paper, the role of the Big Three (i.e., BlackRock, Vanguard, and State Street Global Advisors) on the reduction of corporate carbon emissions around the world is examined.

Journal ArticleDOI
TL;DR: In this paper, the authors assess the financial performance and managerial abilities of green funds and their conventional peers using a comprehensive data set of 2339 funds across twenty-seven emerging markets, and report that traditional energy funds outperform renewable funds.

Journal ArticleDOI
TL;DR: Results showed that GQS interacts with PGRC and augments public trust in government via PGRC as mediator, and offers valuable practical and strategical recommendations to agencies and policymakers.

Journal ArticleDOI
TL;DR: In this paper, the authors explore how top executives affect the well-being of multiple stakeholders and long-run organizational outcomes in the context of the 2008 global financial crisis (GFC).

Journal ArticleDOI
TL;DR: In this article, the authors explored the impact of corporate controversies on financial performance, and proposed the positive moderating role of ESG practices over the aforementioned relationship and found a negative and significant relationship between corporate controversies and financial performance.

Journal ArticleDOI
TL;DR: This article aims to analyze platformization through the metaphorical lens of a tree to make sense of information ecosystems as hierarchical and interdependent structures to inspire a set of principles that reshapes the platform ecosystem in the interest of society and the common good.
Abstract: The complexities of platforms are increasingly at odds with the narrow legal and economic concepts in which their governance is grounded. This article aims to analyze platformization through the me...

Journal ArticleDOI
TL;DR: In this article, the authors examined the effect of the global pandemic on stock market volatility and whether economic strength, measured by a set of selected country-level economic characteristics and factors such as economic resilience, intensity of capitalism, level of corporate governance, financial development, monetary policy rate and quality of health system, could potentially mitigate the possible detrimental effect of global pandamine on stock price volatility.

Journal ArticleDOI
TL;DR: The case for the critical role of local governance in coordinating pandemic response is made by examining how state authorities are attempting to bridge the gap between the need for rapid, vigorous response to the pandemic and local realities in three Indian states.

Journal ArticleDOI
TL;DR: In this paper, an increasing number of studies have examined the relationships between boards of directors and management and resource provision in corporate strategy and decision-making through monitoring of management and resources provision.
Abstract: Boards of directors affect corporate strategy and decision-making through monitoring of management and resource provision Recently, an increasing number of studies have examined the relationships

Journal ArticleDOI
TL;DR: In this article, the authors analyzed the relationship between ten dimensions of the environmental, social, and governance pillars and bank financial performance, for the decade after the 2008 financial crisis, and showed a positive relationship between emission reductions and financial performance.

Journal ArticleDOI
TL;DR: In this paper, a linear panel quantile regression (PQR) model was applied to examine the internal corporate governance (CG) mechanisms affect corporate environmental disclosure (CED) in emerging economies.
Abstract: This study seeks to examine whether internal corporate governance (CG) mechanisms affect corporate environmental disclosure (CED) in emerging economies. Using a sample of 500 firm‐year observations, this study distinctively applies a linear panel quantile regression (PQR) model to examine the CG–CED nexus in Jordan. This technique is supplemented with conducting a two‐step dynamic generalised method of moment (GMM) model to overcome any potential occurrence of endogeneity problems. This study reports an increasing trend in CED practice among the sampled companies over the period of analysis, yet it is still at an early stage as compared with their developed counterparts. Furthermore, this study suggests that board size, board independence, CEO duality and foreign ownership have positive associations with CED. In contrast, managerial ownership, institutional ownership and ownership concentration are negatively associated with the disclosed amount of environmental information in the Jordanian context. Theoretically, board structures appeared to be more efficient than ownership structures in reducing agency conflicts by addressing the asymmetric gap of information and promoting the disclosure of environmental information. These findings add to the debate about whether ownership structures detrimental to CED in developing economies. Specifically, when it comes to spending money on CED, owners seemed to be more concerned about any reductions in their share of the pie and may, therefore, be less motivated to disclose their companies' environmental information. This paper provides managers, owners and policymakers with a set of context‐specific recommendations related to the crucial need for a more concerted effort to integrate governance and environmental regulations in order to ensure sustainability in emerging markets.

Journal ArticleDOI
TL;DR: In this paper, the authors examine how firms react to ESG ratings and the factors influencing their response, and show that firms may react very differently to being rated, with their analysis yielding a fourfold typology of corporate responses, capturing conformity and resistance to ratings across two dimensions of firm behaviour.
Abstract: While a growing number of firms are being evaluated on environment, social and governance (ESG) criteria by sustainability rating agencies (SRAs), comparatively little is known about companies’ responses. Drawing on semi-structured interviews with companies operating in Italy, the present paper seeks to narrow this gap in current understanding by examining how firms react to ESG ratings, and the factors influencing their response. Unique to the literature, we show that firms may react very differently to being rated, with our analysis yielding a fourfold typology of corporate responses. The typology captures conformity and resistance to ratings across two dimensions of firm behaviour. We furthermore show that corporate responses depend on managers’ beliefs regarding the material benefits of adjusting to and scoring well on ESG ratings and their alignment with corporate strategy. In doing so, we challenge the idea that organisational ratings homogenise organisations and draw attention to the agency underlying corporate responses. Our findings also contribute to debates about the impact of ESG ratings, calling into question claims about their positive influence on companies’ sustainability performance. We conclude by discussing the wider empirical, theoretical and ethical implications of our paper.


Journal ArticleDOI
TL;DR: In this article, the authors assess the impact of the COVID-19 pandemic on corporate performance and show that firm performance deteriorates during the CO VID-19 Pandemic, especially in countries with better healthcare systems, more advanced financial systems and better institutions.