Is Religion a Determinant of Financial Development?

International Advances in Economic Research - Studies on the determinants of financial development have been silent on the role of religion. Growing evidence in the literature about how financial...     

Impeding corporate social responsibility: Revisiting the role of government in shaping business — Marginalized local community relations

This paper is based on a case study of the European space industry as it is organized in the postcolonial setting of French Guiana. It brings the state back into political corporate social responsibility (CSR) by showing how government shapes interactions between business and local communities, more specifically around CSR issues. The paper opens new research avenues in political CSR by making two significant contributions. First, it identifies postcolonial contexts as instances in which government, rather than stepping back, gets actively involved to impede the emergence of CSR. This demonstration is made by building on a conceptualization of the marginalized local community as comprising citizens—rather than mere stakeholders—who expect their government to defend their rights vis-à-vis business. Second, by using a longitudinal approach that provides access to dynamics of interactions over time, the paper develops a typology of mechanisms that support a government’s changing role in CSR. Over a 50-year period, such government is shown to have played the roles of impeding the emergence of CSR, partnering for CSR, symbolically mandating CSR, and finally, disengaging from CSR.     

CEOs' reputation,quality management and environmental innovation: The roles of stakeholder pressure and resource commitment

In this paper, we examine how and when chief executive officers' (CEOs') reputation enhances environmental innovation by considering quality management as a mediating mechanism of this relationship. In addition, we introduce stakeholder pressures (primary and secondary stakeholder pressures) as important contingencies of the relationship between CEOs' reputation and quality management. Moreover, we test the moderating role of resource commitment on the quality management‐environmental innovation relationship. We test our research model using data from a manufacturing industry sample of 217 firms from Ghana. We find that quality management mediates the relationship between reputation and environmental innovation. Moreover, the relationship between CEOs' reputation and quality management is amplified when levels of both primary and secondary stakeholder pressures are greater. Finally, our findings show that the effect of quality management on environmental innovation is enhanced when resource commitment is greater. Implications for theory and practice are discussed.     

MANAGING FOR RATINGS: REAL EFFECTS OF A CORPORATE RATINGS CRITERIA CHANGE

We exploit a criteria change by Standard & Poor's (S&P) to examine the real effects of a credit ratings change. Using a recalibration by S&P, unrelated to firms’ fundamentals, as a quasi-natural experiment we analyze the impact of a ratings upgrade on the issuance activity, investment, cash holdings, and payout policy of companies. Our findings suggest upgraded firms subsequently issue more debt relative to equity, enjoy lower debt yields, and increase their investment rate and share repurchases. We find limited evidence that upgraded firms decrease their cash holdings. Our results support the view that credit ratings have a real effect on corporations.