nach oben

Review of Managerial Science

Erschienen in:

22.06.2022 | Original Paper

Board monitoring effectiveness and corporate sustainability performance: do legal system and CEO non-duality matter?

verfasst von: Siew Peng Lee

Erschienen in: Review of Managerial Science | Ausgabe 4/2023

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Using a cross-sectional dataset comprising 749 firms from 13 countries in Asia Pacific markets, this study examines the effect of board monitoring effectiveness (BME) on corporate sustainability performance (CSP). This study also investigates how BME and the country’s legal system, and BME and CEO non-duality leadership interact to influence CSP. The results reveal that BME positively affects CSP, suggesting that strengthening board monitoring effectiveness will lead to a greater drive towards firms’ sustainable business conduct. This study also finds that firms from countries with civil law system and firms practicing CEO non-duality leadership would enhance the impact of BME on CSP. Additionally, the effect of BME on CSP is more pronounced among non-duality firms operating in countries with civil law regime. The findings are consistent and robust to two different measures of CSP.

Vorheriger Artikel The key to happiness in collaborative workplaces. Evidence from coworking spaces

Nächster Artikel Social trading: do signal providers trigger gambling?

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

Countries following a common law system are typically those that were former British colonies or protectorates. The U.S., Canada, England, India, and Australia are generally considered common law countries because they were all once subjects or colonies of Great Britain. Countries following a civil law system are typically those that were former French, Dutch, German, Spanish or Portuguese colonies or protectorates. Most of the Central and Eastern European and East Asian countries are civil law countries. Examples of civil law countries include Germany, France, Spain, China, and Japan.

Adams RB, Hermalin BE, Weisbach MS (2010) The role of boards of directors in corporate governance: a conceptual framework and survey. J Econ Lit 48(1):58–107CrossRef

Aiken LS, West SG (1991) Multiple regression: Testing and interpreting interactions. Sage Publications, Newbury Park, CA

Aguinis H, Glavas A (2012) What we know and don’t know about corporate social responsibility: A review and research agenda. J Manag 38(4):932–968

Allen F, Carletti E, Marquez R (2015) Stakeholder governance, competition, and firm value. Rev of Financ 19:1315–1346)CrossRef

Al-Mamun A, Seamer M (2021) Board of director attributes and CSR engagement in emerging economy firms: Evidence from across Asia. Emerg Mark Rev 46:100749)CrossRef

Al-Mamun A, Seamer M (2022) The influence of institutional qualities on CSR engagement: a comparison of developed and developing economies. Meditari Acc Res 30(1):94–120)

Annunziata E, Pucci T, Frey M, Zanni L (2018) The role of organizational capabilities in attaining corporate sustainability practices and economic performance: Evidence from Italian wine industry. J Clean Prod 171:1300–1311)CrossRef

Arellano M, Bond S (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev Econ Stud 58(2):277–297)CrossRef

Arora P, Dharwadkar R (2011) Corporate governance and corporate social responsibility (CSR): the moderating roles of attainment discrepancy and organization slack. Corp Govern 19(2):136–152)CrossRef

Artiach T, Lee D, Nelson D, Walker J (2010) The determinants of corporate sustainability performance. Acc Financ 50:31–51)CrossRef

Becchetti L, Ciciretti R, Conzo P (2020) Legal origins and corporate social responsibility. Sustainability 12:1–34)CrossRef

Blair MM, Stout LA (1999) A team production theory of Corporate Law. Va Law Rev 85(2):247–328)CrossRef

Bolourian S, Angus A, Alinaghian L (2021) The impact of corporate governance on corporate social responsibility at the board-level: A critical assessment. J Clean Prod 291:125752. https://doi.org/10.1016/j.jclepro.2020.125752. )CrossRef

Brooks C (2014) Introductory Econometrics for Finance, 3rd edn. Cambridge University Press

Chen WT, Zhou GS, Zhu XK (2019) CEO tenure and corporate social responsibility performance. J Bus Research 95:292–302CrossRef

Craig E (2005) Is business ethics necessary? DePaul Bus Com. L J 4(1):55–85. https://via.library.depaul.edu/bclj/vol4/iss1/3

Cucari N, Esposito-de-falco S, Orlando B (2018) Diversity of board of directors and environmental social governance: Evidence from Italian listed companies. Corp Soc Responsib Environ Manag 25(3):250–266)CrossRef

David P, Yoshikawa T, Chari MD, Rasheed A (2006) Strategic investments in Japanese corporations: Do foreign portfolio owners foster underinvestment or appropriate investment? Strateg Manag J 27:591–600)CrossRef

De Villiers C (2011) The effect of board characteristics on firm environmental performance. J Manag 37(6):1636–1663van Staden CJ)

Dyck A, Lins KV, Roth L, Wagner HF (2019) Do institutional investors drive corporate social responsibility? International evidence. J Financ Econ 131(3):693–714)CrossRef

Eesley C, Decelles KA, Lenox M (2016) Through the mud or in the boardroom: Examining activist types and their strategies in targeting firms for social change. Strateg Manag J 37(12):2425–2440)CrossRef

Einwiller SA, Carroll CE (2020) Negative disclosures in corporate social responsibility reporting. Corp Comm: An Int J 25(2):319–337)CrossRef

Elkington J (2006) Governance for sustainability. Corp Govern Inter Rev 14(6):522–529)CrossRef

Endo K (2020) Corporate governance beyond the shareholder-stakeholder dichotomy: lessons from Japanese corporations’ environmental performance. Bus Strategy and Environ 29(4):1625–1633)CrossRef

Fama EF, Jensen MC (1983) Separation of ownership and control. J L Econ 26(2):301–325)CrossRef

Ferrell A, Liang H, Renneboog L (2016) Socially responsible firms. J Financ Econ 122(3):585–606)CrossRef

Freeman RE (1994) The politics of stakeholder theory: Some future directions. Bus Ethics Quart 4(4):409–421)CrossRef

Frias-Aceituno JV, Rodriguez-Ariza L, Garcia-Sanchez IM (2013) The role of the board in the dissemination of integrated corporate social reporting. Corp Soc Responsi Environ Manag 20(4):219–233)CrossRef

Gracia-Torea N, Fernandez-Feijoo B, Cuesta MDI (2016) Board of director’s effectiveness and the stakeholder perspective of corporate governance: Do effective boards promote the interest of shareholders and stakeholders? Bus Res Quart 19:246–260)

Harper J, Sun L (2019) CEO power and corporate social responsibility. Am J Bus 34(2):93–115)CrossRef

Hawn O, Chatterji AK, Mitchell W (2018) Do investors actually value sustainability? New evidence from investor reactions to the Dow Jones Sustainability Index (DJSI). Strateg Manag J 39(4):949–976)CrossRef

Helfaya A, Moussa T (2017) Do board’s corporate social responsibility strategy and orientation influence environmental sustainability disclosure? UK evidence. Bus Strategy and Environ 26(8):1061–1077)CrossRef

Hillman AJ, Dalziel T (2003) Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Acad Manag Rev 28(3):383–396)CrossRef

Hussain N, Rigoni U, Orij RP (2018) Corporate governance and sustainability performance: Analysis of triple bottom line performance. J Bus Ethics 149(2):411–432)CrossRef

Jensen MC, Meckling WH (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J Financ Econ 3(4):305–360)CrossRef

Jiraporn P, Chintrakarn P (2013) How do powerful CEOs view corporate social responsibility (CSR)? An empirical note. Econ Lett 119(3):344–347)CrossRef

Jo H, Harjoto MA (2011) Corporate governance and firm value: The impact of corporate social responsibility. J Bus Ethics 103:351–383)CrossRef

John K, Senbet LW (1998) Corporate governance and board effectiveness. J Bank Financ 22:371–403)CrossRef

Johnson RA, Greening DW (1999) The effects of corporate governance and institutional ownership types on corporate social performance. Acad Manag J 42(5):564–576)CrossRef

Kaplan R, Kinderman D (2020) The business-led globalization of CSR: Channels of diffusion from the United States into Venezuela and Britain, 1962–1981. Bus Soc 59(3):439–488)CrossRef

Kassinis G, Vafeas N (2002) Corporate boards and outside stakeholders as determinants of environmental litigation. Strateg Manag J 23:399–415)CrossRef

Khan A, Muttakin MB, Siddiqui J (2013) Corporate governance and corporate social responsibility disclosures: evidence from an emerging economy. J Bus Ethics 114(2):207–223)CrossRef

Kiel GC, Nicholson GJ (2003) Board composition and corporate performance: How the Australian experience informs contrasting theories of corporate governance. Corp Govern Inter Rev 11(3):189–205)CrossRef

Kim H, Park K, Ryu D (2017) Corporate environmental responsibility: A legal origins perspective. J Bus Ethics 140(3):381–402)CrossRef

Kock CJ, Santola J, Diestre L (2012) Corporate governance and the environment; what type of governance creates greener companies? J Manag Stud 49:492–514)CrossRef

Kolk A, Perego P (2010) Determinants of the adoption of sustainability assurance statements: An international investigation. Bus Strategy Environ 19(3):182–198)

Kouaib A, Sameh M, Jarboui A (2020) Board of directors’ effectiveness and sustainable performance: The triple bottom line. High Tech Manag Research 31(2). https://doi.org/10.1016/j.hitech.2020.100390. )

Liang H, Renneboog L (2017) On the foundation of corporate social responsibility. J Financ 72:853–910)CrossRef

Letza S, Sun X, Kirkbride J (2004) Shareholding versus stake-holding: a critical review of corporate governance. Corp Govern Inter Rev 12(3):242–263)CrossRef

Li F, Li T, Minor D (2016) CEO power, corporate social responsibility, and firm value: A test of agency theory. Inter Managerial Financ 12(5):611–628CrossRef

Lin FY, Lin SW, Fang WC (2022) Impact of CEO narcissism and hubris on corporate sustainability and firm performance. North Am J Econ Financ 59:101586CrossRef

Lourenço IC, Branco MC (2013) Determinants of corporate sustainability performance in emerging markets: the Brazilian case. J Clean Prod 57:134–141CrossRef

Lu J, Wang J (2021) Corporate governance, law, culture, environmental performance and CSR disclosure: A global perspective. J Int Financ Markets Inst Money 70:101264CrossRef

Mallin CA, Michelon G (2011) Board reputation attributes and corporate social performance: an empirical investigation of the US best corporate citizens. Acc Bus Res 41:119–144CrossRef

Mallin C, Michelon G, Raggi D (2013) Monitoring intensity and stakeholders’ orientation: How does governance affect social and environmental disclosure. J Bus Ethics 114(1):29–43CrossRef

Manning B, Braam G, Reimsbach D (2019) Corporate governance and sustainable business conduct – Effects of board monitoring effectiveness and stakeholder engagement on corporate sustainability performance and disclosure choices. Corp Soc Responsi Environ Manag 26(2):351–366)CrossRef

Masud MAK, Nurunnabi M, Seong SM (2018) The effects of corporate governance on environmental sustainability reporting: Empirical evidence from South Asian countries. Asian Sustain Soc Responsi 3(3):1–26)

Michelon G, Parbonetti A (2012) The effect of corporate governance on sustainability disclosure. J Manag Govern 16(3):477–509)CrossRef

Ntim CG, Soobaroyen T (2013) Corporate governance and performance in socially responsible corporations: new empirical insights from a neo-institutional framework. Corp Govern Inter Rev 21:468–494)CrossRef

Ortas E, Álvarez I, Jaussaud J, Garayar A (2015) The impact of institutional and social context on corporate environmental, social and governance performance of companies committed to voluntary corporate social responsibility initiatives. J Clean Prod 108(A):673–684)CrossRef

Pekovic S, Vogt S (2021) The fit between corporate social responsibility and corporate governance: the impact on a firm’s financial performance. Rev Manag Sci 15(4):1095–1125CrossRef

Pfeffer J, Salancik GR (1978) The external control of organizations: A resource dependence perspective. Harper & Row, New York, )

Rendtorff JD (2019) Corporate social responsibility, sustainability, and stakeholder management. Phil Manag Sustain: Rethinking Bus Ethics Soc Responsi Sustain Development: 43–52

Ruf BM, Muralidhar K, Brown RM, Janney JJ, Paul K (2001) An empirical investigation of the relationship between change in corporate social performance and financial performance: A stakeholder theory perspective. J Bus Ethics 32:143–156)CrossRef

Russo MV, Fouts PA (1997) A resource-based perspective on corporate environmental performance and profitability. Acad Manag J 40(3):534–559)CrossRef

Shahab Y, Ye CG (2018) Corporate social responsibility disclosure and corporate governance: Empirical insights on neo-institutional framework from China. Inter Disclosure Govern 15:87–103)CrossRef

Shirasu Y, Kawakita H (2020) Long-term financial performance of corporate social responsibility. Global Financ J 50:100532)CrossRef

Simnett R, Vanstrealen A, Chua WF (2009) Assurance on sustainability reports: An international comparison. Acc Rev 84(3):937–967)CrossRef

Shaukat A, Qiu Y, Trojanowski G (2016) Board attributes, corporate social responsibility strategy, and corporate environmental and social performance. J Bus Ethics 135:569–585)CrossRef

Smith J, Adhikari A, Tondkar R (2005) Exploring differences in social disclosures internationally: A stakeholder perspective. J Acc Pub Policy 24(2):123–151)CrossRef

Quazi AM (2003) Identifying the determinants of corporate managers perceived social obligations. Manag Decis 41(9):822–831CrossRef

United Nations Economic and Social Commissions for Asia and the Pacific (2021) The Asia and the Pacific progress report 2021. https://www.unescap.org/sites/default/d8files/

knowledge products/ESCAP_Asia_and_the_Pacific_SDG_Progress_Report_2021.pdf

Wagner M (2010) The role of corporate sustainability performance for economic performance: A firm level analysis of moderation effects. Ecol Econ 69:1553–1560CrossRef

Walls JL, Berrone P (2017) The power of one to make a difference: How informal and formal CEO power affect environmental sustainability. J Bus Ethics 145(2):293–308CrossRef

Wang J, Dewhirst HD (1992) Boards of directors and stakeholder orientation. J Bus Ethics 11:115–123CrossRef

Webb E (2004) An examination of socially responsible firms’ board structure. J Manag Govern 8(3):255–277CrossRef

Welford R (2004) Corporate social responsibility in Europe and Asia: Critical element and best practice. J Corp Citizenship 13:31–47CrossRef

Yoshimori M (1995) Whose company is it? The concept of the corporation in Japan and the West. Long Range Plan 28(4):33–44CrossRef

Zaid MAA, Wang M, Adib M, Sahyouni A, Abuhijleh STF (2020) Boardroom nationality and gender diversity: Implications for corporate sustainability performance. J Clean Prod 251:119652CrossRef

Zona F, Gomez-Mejia LR, Withers MC (2018) Board interlocks and firm performance: toward a combined agency–resource dependence perspective. J Manag 44(2):589–618

Zaid MAA, Wang M, Adib M, Sahyouni A, Abuhijleh STF (2020) Boardroom nationality and gender diversity: Implications for corporate sustainability performance. J Clean Prod 251: 119652.

Zona F, Gomez-Mejia LR, Withers MC (2018) Board interlocks and firm performance: toward a combined agency–resource dependence perspective. J Manag 44(2): 589–618.

Titel: Board monitoring effectiveness and corporate sustainability performance: do legal system and CEO non-duality matter?
verfasst von: Siew Peng Lee
Publikationsdatum: 22.06.2022
Verlag: Springer Berlin Heidelberg
Erschienen in: Review of Managerial Science / Ausgabe 4/2023
Print ISSN: 1863-6683
Elektronische ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-022-00559-z

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 4/2023

Why do firms down-list or exit from securities markets?

New insights into workplace chaplaincy

Translating the environmental orientation of firms into sustainable outcomes: the role of sustainable dynamic capability

Social trading: do signal providers trigger gambling?

Correction to: The role of humility in Chief Executive Officers: a review

The key to happiness in collaborative workplaces. Evidence from coworking spaces

Premium Partner