scholarly journals Corporate Sustainability and CEO–Employee Pay Gap—Buster or Booster?

2019 ◽  
Vol 11 (21) ◽  
pp. 6023 ◽  
Author(s):  
Fernando Gómez-Bezares ◽  
Wojciech Przychodzen ◽  
Justyna Przychodzen
Keyword(s):  
Positive Relationship ◽  
Corporate Sustainability ◽  
Growth Potential ◽  
Critical Question ◽  
Firm Level ◽  
Pay Gap ◽  
Screening Criteria ◽  
Economic Problems ◽  
Female Ceos ◽  
Salary Distribution

There is a general agreement that extensive remuneration gaps may cause pressing environmental, social, and economic problems. Thus, a critical question to be answered is what is the effect of being at the forefront of corporate sustainability on the CEO–employee pay gap. This paper addresses the question by examining empirical evidence from 415 constituents of the S&P 1500 index over the years 2006–2016. For the above period, we found a positive relationship between a strong commitment to sustainable development at the firm level and the CEO–employee pay differential. Additionally, firms characterized by higher performance, growth potential, and financial robustness constituted more dispersed salary distribution environments. The findings also suggest that CEO gender has a significant effect on the pay gap with a moderating influence of female CEOs. The paper contributes to the literature by shedding additional light on the urgent need for the implementation of a limit capping the CEO–worker pay ratio at a certain, responsible level as one of screening criteria used by sustainability ranking providers. Furthermore, it also shows that leading corporations in the area of sustainability do not implement any serious solutions in the above area on their own accord.

Impact of corporate social responsibility intensity on firm-specific risk and innovation: evidence from Japan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Megumi Suto ◽  
Hitoshi Takehara
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Research And Development ◽  
Manufacturing Industry ◽  
Corporate Sustainability ◽  
Idiosyncratic Risk ◽  
Firm Level ◽  
Content Type ◽  
Specific Risk ◽  
Corporate Social

Purpose The purpose of this paper is to investigate investors’ perception of corporate social responsibility (CSR) and its risk-mitigating effects on firm-level innovation in Japan from 2006 to 2017. The authors examine the influence of CSR intensity on firm-specific risks, focusing on the risk-moderating effect of CSR on innovation. Design/methodology/approach The authors conducted a simple slope analysis and panel data regressions with input and output innovation measures and idiosyncratic risk based on an asset-pricing model. Findings The results demonstrate that CSR intensity not only reduces firm-specific risk directly but also indirectly by negatively moderating the relationship between firm-level innovation and idiosyncratic risk. Research limitations/implications Signaling trust to capital markets, CSR engagements in the manufacturing industry are clearly important for innovative firms with active research and development undertakings. Practical implications Corporate managers should further expand their efforts to make non-financial disclosures available, considering the interactions between CSR intensity and research and development financial risk. Originality/value In the context of Japanese firms, this study demonstrates the interaction between CSR practices and innovation activities from the perspective of long-term management of corporate sustainability.

ENTREPRENEURIAL ALERTNESS AND PRODUCT INNOVATIVENESS: FIRM-LEVEL AND ENVIRONMENTAL CONTINGENCIES

2020 ◽  
pp. 2150023
Author(s):  
SAMUEL ADOMAKO
Keyword(s):  
Positive Relationship ◽  
Empirical Studies ◽  
Hierarchical Regression ◽  
Regression Estimation ◽  
Estimation Technique ◽  
Firm Level ◽  
Firm Capabilities ◽  
Product Innovativeness ◽  
Significant Positive Relationship ◽  
Entrepreneurial Alertness

Although scholars have recognised that alertness is critical in identifying and exploring opportunities, empirical studies exploring when alertness drives innovation are lacking. Drawing insights from the cognitive and contingency perspectives, this study addresses this gap by arguing that variations in firm product innovativeness are a function of the degree of entrepreneurial alertness and levels of internal firm capabilities and environmental conditions. Data were collected from 385 small and medium-sized enterprises (SMEs) in Ghana. This study used the hierarchical regression estimation technique to analyses the data and found a significant positive relationship between entrepreneurial alertness and firm product innovativeness. Moreover, the findings showed that entrepreneurial alertness is beneficial for firms to innovate when pressures from customers and competitors are intense. Finally, the results revealed that stronger market information sharing and technological opportunism also amplify the alertness-innovativeness relationship.

scholarly journals Managing Corporate Sustainability and Responsibility Efficiently: A Review of Existing Literature on Business Groups and Networks

2020 ◽  
Vol 12 (18) ◽  
pp. 7722 ◽  
Author(s):  
Olena Liakh ◽  
Francesca Spigarelli
Keyword(s):  
Corporate Sustainability ◽  
Business Groups ◽  
Management Control ◽  
Organizational Capabilities ◽  
Empirical Literature ◽  
Management Decision ◽  
Organizational Forms ◽  
Firm Level ◽  
Positive Effects ◽  
Industry Standards

Given the global relevance of business groups (BG) and networks as efficient organizational forms for corporate sustainability and responsibility systems (CSR), and seeing that management control systems (MCS) play a pivotal role in transmitting authority to CSR and formalizing a sustainability organizational culture, this paper aims to review the available literature in order to investigate efficient adoptions of CSR by BGs or networks. Both organizational forms have positive effects on CSR development, on three levels: (a) setting industry standards (macro—external environment); (b) stimulating sustainability-oriented innovations (mezzo—member firms); (c) reputational gains, CSR expenses mitigation, and optimization of organizational capabilities (micro—individual SMEs). The studies on SMEs were useful in identifying current sustainability practices: both partial (social, environmental) and complete sustainability systems were susceptible to being integrated with management accounting, making them an almost implicit tool for proper CSR. Finally, by gathering the empirical literature on sustainability transitions of networks and groups, it was possible to trace a comprehensive introductory plan that operators could resort to for initial guidance. The six steps of this process are (1) project initiation, (2) preliminary actions, (3) change management decision, (4) firm-level activities, (5) auditing, (6) transition to territorial social responsibility (optional).

scholarly journals Does Technological Innovation Drive Corporate Sustainability? Empirical Evidence for the European Financial Industry in Catching-Up and Central and Eastern Europe Countries

2020 ◽  
Vol 12 (6) ◽  
pp. 2261 ◽  
Author(s):  
Francisca Sempere-Ripoll ◽  
Sofia Estelles-Miguel ◽  
Ronald Rojas-Alvarado ◽  
Jose-Luis Hervas-Oliver
Keyword(s):  
Financial Performance ◽  
Eastern Europe ◽  
Technological Innovation ◽  
Central And Eastern Europe ◽  
Corporate Sustainability ◽  
Financial Industry ◽  
Critical Question ◽  
Community Innovation Survey ◽  
Catching Up ◽  
The Relationship

In the financial industry, two relationships are well-researched: (i) innovation and financial performance and, (ii) sustainability and financial performance, both focused primarily on Western and advanced countries. The relationship between innovation and sustainability, however, is underresearched. This study’s purpose consists of determining whether there is a relationship between innovation and corporate sustainability in the financial industry. In doing so, this study responds to a critical question: are the most innovative firms also the most sustainability-oriented? We empirically explore sustainability-oriented innovation in the financial industry of 11 catching-up countries in Central and Eastern Europe (CEE). Using Community Innovation Survey (CIS) data for 2012–2014, this study empirically analyzes a large sample of 1574 firms in the financial industry. Our results suggest that innovation is positively linked to corporate sustainability, pointing out that innovation capabilities are positively related to sustainability. Our study proposes a framework for analyzing innovation and sustainability from a capability-perspective.

Financially Qualified Audit Committee Member and Corporate Sustainability: Evidence from Emerging Economy

2018 ◽  
Author(s):  
Ashfaque Banbhan ◽  
Xinsheng Cheng ◽  
Nizam Ud Din
Keyword(s):  
Financial Performance ◽  
Audit Committee ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Committee Member ◽  
Positive Relation ◽  
Accrual Quality ◽  
The Impact ◽  
The Relationship

This paper examines the relationship between financial qualification of the audit committee (AC) chairman on corporate sustainability (CS) in developing the economy of Pakistan, which has a weak corporate environment. In a sample of companies listed on Pakistan Stock exchange (PSX) during 2010-2014. Empirical results of 1020 firm-year observations indicate that the presence of financially qualified AC chairman has a positive relationship with firm’s accrual quality. The results found that accounting qualification of AC chairman has significant positive relation with CS performance. Furthermore, the study found that powerful CEO is also not able to influence CS in the presence of accounting qualified AC chairman, but this result is not present if AC chairman is non-accounting qualified. This study extends the literature on the impact of accounting qualification of AC members and CS and offers some significant understanding into efficient corporate practices to achieve sustainability goals. This study suggests the presence of accounting qualified member in AC which results in effective monitoring for the increased financial performance of the organization.

scholarly journals “Fine...I’ll do it myself”: Lessons from self-employment grants in a long recession period

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Stjepan Srhoj ◽  
Ivan Zilic
Keyword(s):  
Labor Market ◽  
Firm Growth ◽  
Limited Liability ◽  
Growth Potential ◽  
Lower Probability ◽  
Lower Growth ◽  
Moderate Amount ◽  
Firm Level ◽  
Self Employment ◽  
Grant Scheme

Abstract This paper evaluates the effect of a self-employment grant scheme for unemployed individuals—designed to ease the first 12 months of business operation—on firm growth, survival, and labor market reintegration in Croatia in the 2010–2017 period. Grants offered a moderate amount of finances (up to 50% of average annual gross salary) and absorbed only 5% of funds allocated to active labor market policies (ALMPs), but accounted for 10% of new firms opened throughout the years. We contribute to the literature on self-employment grants with several novel findings. Exploiting the longitudinal structure of the unemployment episodes dataset, we find that individuals who finish their spell with a grant have a significantly lower probability of returning to unemployment. The policy is particularly effective for individuals who would have otherwise had labor market opportunities (men, more educated, prime-age workers, previously employed), individuals who became unemployed after inactivity and lost their job due to a firm's closure—which demonstrates that self-employment subsidies can be effective in ameliorating unemployment. However, the policy was not effective for longer unemployed individuals. At the firm level, we find descriptive evidence that limited liability firms opened via a grant have lower growth potential and worse survival profile, while unlimited liability firms—even though a sizable portion of them closes after a required 12-month grant period—have a more favorable survival profile. Finally, we also find that the effectiveness of these grants has increased throughout the years, indicating toward the direction of institutional learning.

scholarly journals Cyclical Fluctuations, Financial Shocks, and the Entry of Fast-Growing Entrepreneurial Startups

2020 ◽  
Author(s):  
Christoph Albert ◽  
Andrea Caggese
Keyword(s):  
Financial Crises ◽  
Employment Growth ◽  
High Growth ◽  
Growth Potential ◽  
Financial Shocks ◽  
Firm Level ◽  
Cyclical Fluctuations ◽  
Ex Post ◽  
Level Information ◽  
High Growth Potential

Abstract We analyze a multiyear, multicountry entrepreneurship survey with more than one million observations to identify startups with low and high growth potential. We confirm the validity of these ex ante measures with ex post firm-level information on employment growth. We find that negative aggregate financial shocks reduce all startup types, but their effect is significantly stronger for startups with high growth potential, especially when GDP growth is low. Our results uncover a new composition of entry channel that significantly reduces employment growth and is potentially important for explaining slow recoveries after financial crises.

scholarly journals Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania

2020 ◽  
Vol 130 (628) ◽  
pp. 937-955
Author(s):  
Matej Bajgar ◽  
Beata Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Positive Relationship ◽  
Host Countries ◽  
Firm Level ◽  
Level Information ◽  
Quality Ladder ◽  
Quality Of Products

Abstract This article argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005–11, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).

Heterogeneous Investment Opportunities in Multiple-Segment Firms and the Incremental Value Relevance of Segment Accounting Data

2003 ◽  
Vol 78 (2) ◽  
pp. 397-428 ◽  
Author(s):  
Peter F. Chen ◽  
Guochang Zhang
Keyword(s):  
Value Creation ◽  
Value Relevance ◽  
Growth Potential ◽  
Capital Investments ◽  
Firm Level ◽  
Accounting Data ◽  
Incremental Value ◽  
Investment Opportunities ◽  
Level Information ◽  
Segment Data

Applying a real-options-based valuation approach, we develop and test a model that addresses the incremental value relevance of segment data beyond firmlevel accounting data. Prior studies (e.g., Zhang 2000; Biddle et al. 2001) show that equity valuation requires accounting data (in part) because accounting provides signals that guide capital investments underlying value creation. In this study, we establish that the usefulness of segment data beyond aggregate data relates to heterogeneity of investment opportunities across segments, caused by divergences of segment profitability and growth potential. Empirical results are consistent with the model's predictions. We also assess the magnitude of the valuation impact of segment information relative to that of firm-level information.

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