We study the effect of corporate social responsibility (CSR) on shareholder value. We argue that long-term investors can ensure that managers choose the amount of CSR that maximizes shareholder value. We find that long-term investors do increase the value to shareholders of CSR activities, not...

There is a heated debate on shareholder versus stakeholder governance. The stakeholder view recognises that companies have broader responsibilities to society than just making profit. But the lack of an integrated measure makes it difficult to hold management accountable against multiple goals....

The financial crisis of 2008 and the resulting economic recession have cruelly exposed weaknesses in corporate oversight at all levels – organizational, sector, national, and international. Consequently stakeholders are now demanding higher standards of corporate oversight to provide them with...

This study examines the role of foreign institutional ownership in corporate social responsibility. Using the Shanghai-Hong Kong Stock Connect as a quasi-natural experiment, our difference-in-differences estimation shows that foreign institutional ownership drives firms’ CSR improvements....

I examine whether greater protection of non-financial stakeholders such as employees, customers and the community can enhance corporate benefits to these stakeholders, and hence impact firm innovation, value and capital structure. Using the exogenous passage of Constituency laws to measure...

We exploit the network of director interlocks to examine the influence of the board's stakeholder orientation on the firm's disposition towards its stakeholders, director selection, and valuation. Using measures of stakeholder orientation of the board and the firm, we find that the board's...

Currently, there is much debate about the role that non-investor stakeholder interests play in the governance of public companies. Critics argue that greater attention should be paid to the interest of stakeholders and that by investing in initiatives and programs to promote their interests,...

This paper aims at empirically supporting, in a cross-country and cross-industry analysis, the instrumental role of stakeholder management by adopting a disaggregated approach to the corporate social performance measurement. By using a sample of 250 European industrial listed firms, from 10...

Perception regarding a focal firm's corporate social responsibility (CSR) depends not only on itself but also on its known suppliers. This paper provides the first empirical evidence linking CSR and supply chain information disclosure together. Specifically, it uncovers robust evidence that...

To address growing concerns about the negative effects of corporations on their stakeholders, supporters of stakeholder governance (“stakeholderism”) advocate a governance model that encourages and relies on corporate leaders to serve the interests of stakeholders and not only those of...