exogenous passage of Constituency laws to measure stakeholder protection, I find that firms incorporated in states that pass the … laws have a higher number of stakeholder-friendly policies. More importantly, I demonstrate that after the increase in … stakeholder protection, firms with weaker governance experience lower innovation and firm value, and higher leverage than firms …

can ensure that managers choose the amount of CSR that maximizes shareholder value. We find that long-term investors do …. Following prior work, we use indexing by investors and state laws on stakeholder orientation for identification. Our findings … suggest that CSR activities can create shareholder value as long as managers are properly monitored by long-term investors …

There is a heated debate on shareholder versus stakeholder governance. The stakeholder view recognises that companies … to hold management accountable against multiple goals. Moreover, the traditional stakeholder model tends to focus on …