Family Control and Corporate Innovation in Stakeholder-Oriented Corporate Governance

Executives' academic experience and corporate social responsibility: A case study in China

Fulfilling corporate social responsibility (CSR) is crucial for society's sustainable development. Executives' academic experience significantly affects their awareness of social responsibility, value orientation, professional ability, and network resources. Thus, it is critical in CSR-related corporate decision-making. This paper explores the impact of executives' academic experience on the fulfillment of CSR. It focuses on non-financial, Special treatment enterprises (ST), and ST* enterprises listed in the A-share market from 2012 to 2021. It utilizes a fixed-effects analysis model to examine the relationship between executives' academic experience and CSR fulfillment. The CSR score and executives' academic experience were positively correlated. This paper also explores the intermediary role of compensation incentives and the moderating effect of marketization level. Both compensation incentives and the level of marketization positively moderated the relationship between executives' academic experience and CSR fulfillment. Meanwhile, the robustness results showed that the experimental findings still held after replacing the explained and explanatory variables. This paper contributes to the advancement of the Upper Echelons Theory and provides empirical evidence for the society's sustainable development.

When stakeholder orientations matter: Modelling employee orientation, shareholder orientation and supply chain orientation as necessary and sufficient conditions for firm performance

Businesses operate in an increasingly dynamic environment requiring that they strike a delicate, healthy, and equitable balance among the interests of their numerous stakeholders. This study examined how employee orientation and shareholder orientation influence supply chain orientation and how employee orientation, shareholder orientation, and supply chain orientation influence firm performance. The study used a sample of 265 respondents and applied both linear and triangular data analysis techniques in Partial-Least Squares Structural Equation Modelling (PLS-SEM) and Necessary Condition Analysis (NCA) to examine how employee orientation, shareholder orientation, and supply chain orientation influence the performance of oil marketing companies (OMCs) in Ghana. The PLS-SEM results revealed that employee orientation and shareholder orientation are significant predictors of supply chain orientation. The NCA results revealed that employee orientation is the most important for supply chain orientation. Also, from the PLS-SEM results, employee orientation and supply chain orientation predict firm performance, but shareholder orientation does not. However, the NCA results suggest that all three orientations are necessary for firm performance and highlight supply chain orientation as the most important for firm performance. This study is the first to examine how employee orientation and shareholder orientation influence supply chain orientation, besides how the three orientations influence firm performance from both sufficiency and necessity theory perspectives. The study also uncovers supply chain orientation as an underlying process through which employee and shareholder orientation enhances firm performance.

The Board Structure and Performance in IPO Firms: Evidence from Stakeholder-Oriented Corporate Governance

This study investigates the internal mechanisms as an important factor for shareholders and stakeholders in initial public offering (IPO) firms with stakeholder-oriented corporate governance. Over the period of 2009–2016, we examine the role of independent directors in Japanese stakeholder-oriented corporate governance. According to previous research, the monitoring role of independent directors is strengthened in countries with a market-based financial system. Our empirical analyses show that independent directors do not effectively mitigate conflicts among shareholders such as IPO underpricing in a stakeholder-oriented corporate governance framework. Alternatively, accounting expertise may contribute to mitigating IPO underpricing in accordance with U.S. corporations. The participation of bank-affiliated directors in IPO firms further contributes to the mitigation of underpricing. Accordingly, these findings imply that bank ties through Horizontal Keiretsu’s bank-appointed directors are critical for mitigating conflicts among shareholders in IPO firms. These results imply that stakeholder-oriented corporate governance systems contribute to reducing conflicts among stakeholders.

Impact of Parent Companies and Multiple Large Shareholders on Audit Fees in Stakeholder-Oriented Corporate Governance

This study aimed to investigate the impact of parent companies and other multiple large shareholders (MLSs) on the audit fees in Japanese firms, where stakeholder-oriented corporate governance is adopted. In such a firm, monitoring by many stakeholders can mitigate conflicts among shareholders. However, because the key stakeholders of these firms tend to resolve information asymmetry problems through insider communication, the level of audit effort is affected not only by the audit risk from principal–principal conflicts, but also by the demands of key stakeholders. Japanese parent companies tend to spin off their departments with high growth potential and provide incentives to lower subsidiaries’ cost of capital through information disclosure. Therefore, parent companies require greater audit efforts, and consequently, audit fees are expected to be higher. However, when MLSs are shareholders of the listed subsidiary, they can obtain relevant information via private communication. Thus, the need for quality accounting information will be smaller, the level of audit effort required will be smaller, and as a result, audit fees will be smaller. The results are consistent with these expectations. This paper contributes to the sustainable growth and economic development of firms and markets and has implications for the development of effective corporate governance mechanisms.