Integrating corporate social responsibility criteria into executive compensation and firm innovation: International evidence

Tsang, Albert; Wang, Kun Tracy; Liu, Simeng; Yu, Li

doi:10.1016/j.jcorpfin.2021.102070

Cited by 137 publications

(70 citation statements)

References 88 publications

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“…The optimal innovation-motivating incentive scheme exhibits substantial tolerance (or even reward), so it regulates the resistance of corporate executives to innovative activities and reduces the professional risks of executives. [ 26 , 27 , 28 ]. The increase in information transparency creates an atmosphere of tolerance for failure, thereby reducing the risks faced by managers, stimulating R&D motivation and promoting the output of results.…”

Section: Theoretical Background and Research Hypothesismentioning

confidence: 99%

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Chen

Shu

Wang

et al. 2021

IJERPH

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The paper analyzes the effect of environmental uncertainty on corporate technological innovation from the perspective of an innovation value chain under the institutional background of China. This paper not only discusses the intermediary effect of agency problems on environmental uncertainty and corporate technological innovation but also deeply explores the influence of information transparency, government subsidies, and other mechanisms to alleviate agency problems on environmental uncertainty and corporate technological innovation. We use the data of listed companies in China from 2008 to 2019 as the research sample, and the results show that, in general, environmental uncertainty has a negative effect on both input and output of technological innovation, and the negative effect can last for two years. Further research shows that the agency problem has an intermediary effect on the environmental uncertainty and corporate technology innovation, and the environmental uncertainty aggravates the agency problem, which hinders the input and output of corporate technology innovation. As an important mechanism to alleviate the agency problems, information transparency and government subsidies can effectively alleviate the agency conflict, thus reducing the inhibition of environmental uncertainty on the input and output of technological innovation. Our findings contribute to the discussion of driving factors for technological innovation in the context of China’s system. Our results provide useful insights into the link between environmental uncertainty and corporate innovation for economic academics and practitioners alike.

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Section: Theoretical Background and Research Hypothesismentioning

confidence: 99%

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Chen

Shu

Wang

et al. 2021

IJERPH

View full text Add to dashboard Cite

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“…Civil law countries usually have stronger labour organizations, which could contribute to tougher firing rules or broader collective negotiating arrangements, as well as stricter consumer security legislation, which imposes further constraints on pricing and control in commodity markets to address the needs of different stakeholders (La Porta et al, 2008). Therefore, based on a stakeholderorientation model, the civil law system provides firm managers higher flexibility in strategic and social decision-making such as SDG engagement and investment than that of common law countries where managers work only on maximizing shareholders' value (La Porta et al, 1998Porta et al, , 2000Tsang et al, 2021).…”

Section: 3mentioning

confidence: 99%

“…Liquidity is computed as the sum of cash and short-term investments to control for the slack resources. Older firms typically engage more in social investments because they have more resources and experience than younger firms (Tsang et al, 2021). Therefore, we also include firm age in the model computed as natural log of current year minus the incorporation year.…”

Section: Control Variablesmentioning

confidence: 99%

“…Therefore, based on a stakeholder-orientation model, the civil law system provides firm managers higher flexibility in strategic and social decision-making such as SDG engagement and investment than that of common law countries where managers work only on maximizing shareholders’ value (La Porta et al. , 1998, 2000; Tsang et al. , 2021).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Section: Data and Variables Constructionmentioning

confidence: 99%

See 2 more Smart Citations

Multinational enterprises’ internationalization and adoption of sustainable development goals

Gupta¹,

Kumar

Pathak

2022

IJMF

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PurposeUsing a sample of 1,517 multinational enterprises (MNEs) from 25 countries, this study aims to examine whether firm’s level of internationalization has a deterministic role for their engagement with sustainable development goals (SDGs). Additionally, this study aims to investigate the country- and industry-specific moderation effects on the relationship.Design/methodology/approachThis study employs negative binomial regression model along with the fixed effects for industry and time in the empirical estimation.Findings This study shows that MNEs’ internationalization is associated with their higher engagement in SDGs. This is owing to the pressures MNEs face from diverse stakeholders coupled with the need to build local legitimacy to overcome the liability of foreignness. The country-level results of this study suggest that this positive relation is stronger in countries with weak legal environment, countries with weak investor protection and in countries with higher SDG index scores. However, the industry-level results of this study indicate that the positive relation between MNEs internationalization and their SDG engagement are weaker in industries facing more competition and industries exposed to negative externalities. The results survive to controls for factors specific to firm and industry.Originality/valueThis study is one of the early studies which empirically examine the role of MNE internationalization and SDG engagement. Also, the findings of this study improve the understanding on country-specific and industry-specific challenges in implementing SDGs.

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CEO foreign experience and corporate sustainable development: Evidence from China

2022

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This study examines the impact of CEO foreign experience on corporate sustainable development from the angle of firm green innovation. Using manually collected data of CEOs' foreign experience, we find that CEO foreign experience is positively associated with firm green innovation in China. The positive relationship between CEO foreign experience and green innovation (including green invention patents and green utility model patents) is more significant when the firm is state owned, when the firm has better corporate governance, and when the firm is subject to a better institutional environment. Further analyses indicate that both foreign work and foreign educational experiences matter; relative to experiences gained in underdeveloped countries, those related to developed economies tend to be more influential in facilitating green innovation. Finally, the documented association is robust to a series of robustness checks, including propensity score matching, instrumental variable approach, Heckman two‐stage model, and the inclusion of firm fixed effects. Overall, this paper contributes to the upper echelons perspective, and it also offers clear practical implications through showing that hiring returnee CEOs can enhance firms' sustainable development, which could be of interest to policy makers in other emerging markets.

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Integrating corporate social responsibility criteria into executive compensation and firm innovation: International evidence

Cited by 137 publications

References 88 publications

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

The Impact of Environmental Uncertainty on Corporate Innovation: Empirical Evidence from an Emerging Economy

Multinational enterprises’ internationalization and adoption of sustainable development goals

CEO foreign experience and corporate sustainable development: Evidence from China

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