Does Firm Size Comfound the Relationship Between Corporate Social Performance and Firm Financial Performance?

There has been some theoretical and empirical debate that the positive relationship between corporate social performance (CSP) and firm financial performance (FFP) is spurious and in fact caused by a third factor, namely large firm size. This study examines this question by integrating three meta-analyses of more than two decades of research on (1) CSP and FFP, (2) firm size and CSP, and (3) firm size and FFP into one path-analytic model. The present study does not confirm size as a third factor which would confound the relationship between CSP and FFP. That is, even if firm size is controlled for across studies (comprising, on average, over 15 000 observations), CSP and FFP remain positively correlated, showing a "true-score" corrected path coefficient p of 0.37.     

How Do Ownership Concentration and Family Control Affect R&D Investments? New Evidence from Taiwan

This study finds a nonlinear relationship between ownership concentration and R&D investments. Specifically, ownership concentration is positively related to R&D investments at a low level of ownership concentration; the relationship becomes negative when ownership concentration is at a high level. However, the impact of ownership concentration on R&D investments is lessened in family‐controlled firms; that is, family control moderates the relationship between ownership concentration and R&D investments. Overall, this study suggests that the ownership concentration's nonlinear impact on R&D investments differs between family‐controlled firms and nonfamily‐controlled firms.     

Do Product and Consumer Characteristics Affect the Relationship Between Online Experience and Customer Satisfaction?

ABSTRACT

This study utilizes a survey to understand how relevant product and consumer characteristics affect the relationship between online experience and satisfaction. Results indicate that Web shoppers' satisfaction is strongly affected by a superior online experience if they have no prior experience with the purchased brand, they are purchasing a high priced product, and their general attitudes toward online shopping are not very favorable. Further, the relationship between online experience and satisfaction was found to be stronger for females as compared to males.     

Institutional Ownership,Risk Disclosure,and Potential Benefits： From the Perspective of Internal Control and Firm Risk

This study investigates risk reporting practices of Chinese listed manufacturing companies. More specifically, it empirically examines the relationship between the percentage of institutional shareholding, the disclosure of risk related information and the impact of risk disclosure on internal control and firm risk. Three risk disclosure attributes indicative of good risk related information disclosure are employed in this research. As hypothesized, we find that firms with higher institutional ownership provide more informative disclosure on distinct risk factors and take more actions in response to the risk factors. Results drawn from the potential benefits of risk reporting suggest that risk disclosure has positive effects on the quality of internal control. We also find that risk disclosure can effectively decrease future downside systemic risk.     

How Does the Franchisor's Choice of Different Control Mechanisms Affect Franchisees’ and Employee-Managers’ Satisfaction?

Satisfaction of franchisees and employee-managers affects the overall performance of a franchise system. We argue that different actors in the same franchise system need to be treated in different ways. The franchisor's choice of control mechanisms affects the satisfaction of franchisees and employee-managers differently. To our knowledge this is the first study that gathers primary data from franchisees and employee-managers in the same franchise system at the store level with almost identical questionnaires. We show based on data from the largest German franchise system that outcome control leads to higher satisfaction among franchisees and employee-managers, while behavior control enhances employee-managers’ satisfaction. Thereby, outcome control leads to higher satisfaction among more experienced franchisees, while behavior control enhances both highly and lowly experienced employee-managers’ satisfaction. Our results suggest that franchisors face a dilemma: On the one hand, behavior control is associated with high costs and has no impact on franchisees’ satisfaction at all. On the other hand, it might still be necessary to prevent franchisees from behaving opportunistically.     

Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy

Do firms gain environmental legitimacy when they conform to external expectations regarding the natural environment? Drawing on institutional logic and signaling theory, we investigate sources of heterogeneity in the impacts of environmental actions on environmental legitimacy. Longitudinal data (1997–2001) about 325 publicly traded U.S. firms in polluting industries support the notion that environmental actions help firms gain environmental legitimacy. However, some actions instead can harm this legitimacy if environmental performance deteriorates and the firm is subject to intense scrutiny from nongovernmental organizations. Thus, an important contribution of this research is to identify conditions under which greenwashing can backfire.     

National Determinants of Family Firm Development? Family Firms in Britain, Spain, and Italy in the Nineteenth and Twentieth Centuries

We provide here a complement to recent work on family business,which has demonstrated the need to go beyond the generic definitionof the family firm to place personal capitalism in an appropriateinstitutional, historical, and cultural framework. By focusingon the nineteenth- and twentieth-century experiences in Britain,Spain, and Italy, we challenge the notion that in the nineteenthand twentieth centuries there was anything so simple as a Mediterraneanmodel for family business. Rather, we demonstrate the need toconsider family businesses in national and regional contextsif we are to understand their various capabilities and characteristics.We use similarities and differences in the experiences and responsesof families and firms in the three countries to support thisclaim.     

Does Trust Matter? The Relationship Between Equity Sensitivity and Perceived Organizational Justice

The present research study was designed to extend our knowledge about issues of relevance for business ethics by examining the role of equity sensitivity and perceived organizational trust on employees perceptions of procedural and interactional justice. A model was developed and tested, and results revealed that organizational trust and respect mediated the relationship between an employees equity sensitivity and perceptions of procedural, interactional, and social accounts fairness. A discussion of issues related to perceptions of trust and fairness is presented, as well as recommendations for leaders and future scholarship.Jill Kickul, Ph.D., is the Elizabeth J. McCandless Professor in Entrepreneurship at the Simmons School of Management. She teaches courses on Entrepreneurship the New Venture Management, Contemporary Entrepreneurial Opportunities, and Strategic Analysis for Competing Globally. She has taught entrepreneurship internationally for the Helsinki School of Economics and for the International Bank of Asia (Hong Kong MBA Program). Her research interests include entrepreneurial intentions and behavior, strategic and innovation processes in start-up ventures, and women in entrepreneurship. Her articles have appeared in publications such as Journal of Management, Frontiers of Entrepreneurship Research, Journal of Small Business Management, and International Journal of Entrepreneurship and Innovation.Lisa Gundry, Ph.D., is Professor of Management in the Charles H. L. Kellstadt Graduate School of Business at DePaul University where she teaches courses in Creativity in Business and Entrepreneurship Strategy. She has authored three books on entrepreneurship and innovation, and written numerous journal articles for publications including Journal of Business Venturing, Journal of Small Business Management, Journal of Management, Human Relations, Organizational Dynamics, Journal of Developmental Entrepreneurship and Family Business Review. Her research interests focus on entrepreneurship strategy and growth, and creative and innovative processes in organizations. She is Director of the Leo V. Ryan Center for Creativity and Innovation at DePaul University.Margaret Posig, Ph.D., is an Associate Professor in the Charles H. Kellstadt Graduate School of Business at DePaul University, where she teaches courses in Leadership and Change Management. Her research interests are in the areas of organizational leadership and change management, workplace stress, and women in leadership. Her publications appear in the Journal of Occupational Health Psychology, Women in Management Review, Journal of Managerial Issues, and Journal of Business and Entrepreneurship, among others. Dr. Posig is an Industrial/Organizational psychologist, with a Ph.D. from DePaul University, and directs the Leadership and Change Management concentration. Her consulting focuses on management development and workplace stress management.     

Chinese Private Firms’ Outward Foreign Direct Investment: Does Firm Ownership and Size Matter?

This article investigates and explains the behaviors, motives, and characteristics of Chinese privately owned enterprises’ (POEs’) outward foreign direct investment (OFDI), and compares this with the behaviors, motives, and characteristics of Chinese state‐owned enterprises (SOEs), using the institutional perspective and resources‐based view. Through in‐depth interviews with senior managers and an extensive secondary data analysis of Chinese POEs’ OFDI, we found that Chinese POEs are increasingly active in committing both market‐ and strategic asset–seeking OFDI due to the unfavorable institutional environment they face in China and the different types of resources possessed. POEs cluster with their business partners or domestic peers for international market expansion and adopt several approaches to acquire strategic assets. © 2014 Wiley Periodicals, Inc.     

Does it Pay to Be Ethical? Examining the Relationship Between Organisations’ Ethical Culture and Innovativeness

In this article, we examine the relationship between ethical organisational culture and organisational innovativeness. A quantitative empirical analysis is based on a survey of a total of 719 respondents from all levels of three Finnish organisations, both general staff and managers. The organisations belong to both the private and public sectors. The results of this study show that organisations’ ethical culture is associated with their organisational innovativeness, and that different dimensions of ethical culture are associated with different dimensions of organisational innovativeness. The ethical culture of the organisation had a specific role in process and behavioural innovativeness. It was found that congruency of management was the single dimension with the highest effect on organisational innovativeness overall and specifically on process and behavioural innovativeness. These findings suggest that when organisations are aiming for specific outcomes, such as organisational innovativeness, they need to be aware of what dimensions of ethical culture are particularly relevant.     

Does Religion Affect the Materialism of Consumers? An Empirical Investigation of Buddhist Ethics and the Resistance of the Self

This paper investigates the effects of Buddhist ethics on consumers’ materialism, that is, the propensity to attach a fundamental role to possessions. The literature shows that religion and religiosity influence various attitudes and behaviors of consumers, including their ethical beliefs and ethical decisions. However, most studies focus on general religiosity rather than on the specific doctrinal ethical tenets of religions. The current research focuses on Buddhism and argues that it can tame materialism directly, similar to other religions, and through the specific Buddhist ethical doctrines of the Four Immeasurables: compassion, loving kindness, empathetic joy, and equanimity. The empirical results show the following: (1) Buddhism reduces materialism directly and through some of the Four Immeasurables, and (2) despite the doctrine of non-existence of the self, positive emotions toward the self are still present, and the self absorbs the effects of Buddhist ethics on materialism. The latter finding suggests a “resistance of the self” that is coherent with the idea of a consumer who leverages the self to go beyond it.     

Does Employee Ownership Benefit Value Creation? The Case of France (2001–2005)

The focus of this paper is employee ownership, specifically the role of employee ownership in value creation. Based on a sample of 163 French companies, we have measured the impact of employee share ownership on value creation for both shareholders and stakeholders. Only companies with a sustained employee ownership policy over a 5-year period (from 2001 to 2005), as defined by the French Federation of Employee and Former Employee Shareholders (FAS), have been considered. The results indicate that employee share ownership plans have no effect on shareholders’ or stakeholders’ value creation.     

Social Relationship of a Firm and the CSP–CFP Relationship in Japan: Using Artificial Neural Networks

As a criterion of a good firm, a lucrative and growing business has been said to be important. Recently, however, high profitability and high growth potential are insufficient for the criteria, because social influences exerted by recent firms have been extremely significant. In this paper, high social relationship is added to the list of the criteria. Empirical corporate social performance versus corporate financial performance (CSP–CFP) relationship studies that consider social relationship are very limited in Japan, and there are no definite conclusions for the studies in the world, because of scant data and the inappropriate methods, especially for supporting linear hypothesis which these studies are based on. In this paper, the CSP–CFP relationship is analyzed by an artificial neural networks model, which can deal with a non-linear relationship, using 10-year follow-up survey data.

The Shareholder–Manager Relationship and Its Impact on the Likelihood of Firm Bribery

We examine the impact on firm bribery of two corporate governance devices heavily studied in corporate governance research—i.e., separation of ownership and control, and equity share of the largest shareholder. In addition, we investigate the impact of the principal–owner’s gender on firm bribery. From agency theory, we predict that firms with the owner also acting as a manager (owner–manager) are more likely to engage in bribery compared to their counterparts with separation of ownership and control. We argue that an increase of the equity share of the largest shareholder can either increase or decrease firm bribery likelihood depending on the net cost-benefit effect of such bribery actions. In addition, we predict that bribery is more likely to occur when the principal–owner is male rather than female. Using a rich dataset of the World Bank Enterprise Surveys of 2002–2005, we find that the equity share of the largest shareholder is negatively and male principal–owner is positively associated with the likelihood of firm bribery. Furthermore, we reveal that owner–manager is more likely to bribe when the principal–owner is male rather than female. We also observe that the effect of owner–manager is smaller as the equity share of the largest shareholder increases.     

Exploring the Curvature of the Relationship Between HRM–CSR and Corporate Financial Performance

Journal of Business Ethics - This article contributes to the general literature on the relationship between corporate social performance and corporate financial performance, as well as to the...     

Does Globalisation Affect Crime? Theory and Evidence

Globalisation sceptics argue that trade liberalisation has high social costs, including an increase in expropriative behaviour such as civil conflict, coercion of labour and crime. We show that a theoretical relationship between trade and expropriation exists, but the sign differs for developed and developing economies. We verify this empirically using data on crime rates. Specifically, we find that trade liberalisation, as measured by both higher openness and lower import duty rates, tends to increase burglaries and theft in very labour‐abundant countries. For other countries, however, we find that trade liberalisation has either a small negative effect on crime or no effect, depending on the country's capital abundance.     

How Does the Largest Shareholder Affect Dividends?

Focusing on the legal protection of minority shareholders in Japan, which suggests that manager‐owned firms are better governed than corporation‐owned firms, this study presents a new test of two dividend models: the substitute model and the outcome model. In support of the latter, I find that manager‐owned firms pay higher dividends than corporation‐owned firms. The paper also examines the association between ownership by the largest shareholder and dividend payments. I find an inverted U‐shaped relationship for manager‐owned firms and a U‐shaped relationship for corporation‐owned firms between them. These results can be explained by the benefits and drawbacks of concentrated ownership.     

Does Geographic Proximity Change the Passiveness of Equity Ownership by Bank Trust?

We provide evidence that while concentrated bank trust ownership is passive with distant firms, it is nonpassive with local firms and reduce their risk‐taking. Concentrated local bank trust ownership is associated with (i) lower future firm equity beta and (ii) less uncertain corporate policies. The results cannot be explained by private information alone, are not driven by local bank trusts as a mixed debt‐equity holder, and are robust to various tests for endogeneity. We also explore channels through which local bank trusts could exert their influence, including their stabilizing function during crisis periods and joining force with local independent directors.