Business in times of crisis

Johnstone-Louis, Mary; Kustin, Bridget; Mayer, Colin; Stroehle, Judith C.; Wang, Boya

doi:10.1093/oxrep/graa021

Cited by 12 publications

(9 citation statements)

References 10 publications

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“…From this literature, some early evidence suggests that family involvement in business played a role, too (e.g. Johnstone-Louis et al., 2020 ; Ding et al., 2021 ). Yet, it is still unclear what specific attributes of family involvement mattered the most, what dimensions of performance were most relevant, and what the mechanisms at play are.…”

Section: Introductionmentioning

confidence: 99%

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Family ownership during the Covid-19 pandemic

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Quarato

2022

Journal of Banking & Finance

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A growing literature is devoted to understand how companies react to major external shocks. Contributing to this research, we study how the presence of families in corporate ownership and leadership affected the reaction of firms to the Covid-19 pandemic. Using data from Italy, we find that family firms exhibited higher market performance and operating profitability than other firms during the pandemic period. This result is stronger for companies without relevant minority investors and with multiple family shareholders. Delving into the mechanisms, we show that the outperformance of family firms is driven by a more efficient use of labor and a lower drop in revenues. Collectively, our results expand existing research by showing how family ties shape the response to adverse events.

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Section: Introductionmentioning

confidence: 99%

“… 4 Albeit insightful, the analysis in Ding et al. (2021) and Johnstone-Louis et al. (2020) is confined to stock returns.…”

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confidence: 99%

Family ownership during the Covid-19 pandemic

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2022

Journal of Banking & Finance

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“…Aldamen et al [11] find audit committee characteristics are associated with firm performance during a crisis. Johnstone-Louis et al [12] find that firms with a higher level of ESG show better performance even in a crisis. Corporate social responsibility activities can play an essential role in outperforming during financial crisis periods [13,14].…”

Section: Literature Reviewmentioning

confidence: 99%

Conservative Financial Reporting and Resilience to the Financial Crisis

Kim

Hyuk

2022

Sustainability

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Given that the current economic hardship created by COVID-19 is still in progress, it is important to understand firms’ strategic responses to prior external shocks (e.g., the financial crisis in 2007 and 2008) and the relationship between their courses of action and post-shock firm performance. This study examines (1) whether firms’ practices in financial reporting are associated with the financial crisis and (2) whether firms with conservative financial reporting during the crisis exhibit better performance in post-crisis periods. Using the ordinary least squares (OLS) models and conservatism proxy, we find that firms are more conservative in financial reporting during the financial crisis. We also find that firms with a higher degree of accounting conservatism in the financial crisis outperform in the post-crisis periods. These findings have implications for practice by providing guidance on accounting conservatism for firms who want to develop resilience from financial setbacks due to economic shocks.

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“…On the one hand, stakeholders were profoundly affected by COVID‐19, and many of them turned to the business community to help mitigate some of the social and economic impacts of the pandemic (Carnevale & Hatak, 2020; Kramer, 2020; Mao et al, 2020). Conversely, businesses faced severe economic challenges due to the pandemic and were compelled to make business continuity their core priority to ensure their survival (Donthu & Gustafsson, 2020; Johnstone‐Louis et al, 2020). Overall, this stream of literature advocates that stakeholders expect the business community to bear part of the responsibility to society during national calamities (Aldrich, 2012; Tilcsik & Marquis, 2013) and stakeholders reward (or punish) them for doing so (or not) (Bae et al, 2021; Chen, 2020; Lins et al, 2017; Yi et al, 2021).…”

Section: Literature Review Theoretical Background and Csr During Glob...mentioning

confidence: 99%

Changes in corporate social responsibility activity during a pandemic: The case of COVID‐19

Mellahi¹,

Rettab²,

Sharma³

et al. 2023

Business Ethics Env & Resp

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This study examines the practice of corporate social responsibility (CSR) during COVID‐19. Little is known about how organizations practice CSR during acute exogenous crises. Overlooking how CSR practices change during a crisis matters because organizations are compelled into trade‐offs that carry implications for their CSR initiatives. Analysis of interview data with CSR managers, from 21 Dubai‐based business organizations during COVID‐19, uncovers changes in the content and process of CSR during the pandemic. The results show that the practice of CSR underwent a fundamental change in focus as organizations shifted to an employee‐centric model of CSR and away from an environmental one. Measures placed on organizations and society to combat the pandemic also led to a recalibration of stakeholder and issue salience, with notable effects on CSR that challenge the capability of the power–legitimacy–urgency framework to anticipate these shifts. We consider the impacts associated with the shift in the content of CSR initiatives and process of their implementation and discuss the implications of the findings for CSR theory, research, policy, and practice.

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Business in times of crisis

Cited by 12 publications

References 10 publications

Family ownership during the Covid-19 pandemic

Family ownership during the Covid-19 pandemic

Conservative Financial Reporting and Resilience to the Financial Crisis

Changes in corporate social responsibility activity during a pandemic: The case of COVID‐19

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