Legal Origins, Corporate Governance, and Environmental Outcomes

Kock, Carl Joachim; Min, Byung-Seong

doi:10.1007/s10551-015-2617-1

Cited by 42 publications

(19 citation statements)

References 56 publications

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“…The results indicated that the higher the representation of women and the higher the resrepsentation of independent directors on the firm's board, the more likely the firm was to form sustainabilitythemed alliances. Kock and Min (2015) found support for their hypothesis that a shareholder focused common law legal origin was associated with significantly higher emissions of CO 2 , and also that international environmental agreements like the Kyoto Protocol seemed to have a more pronounced effect in shareholder centric economies than thus far assumed.…”

Section: Prior Studiesmentioning

confidence: 77%

“…A study based on a different environment such as the UK will make a significant contribution to our understanding of the relationship between corporate governance mechanisms and environmental performance since the relationship may differ from one country to the other due to the legal and cultural differences. For example, Kock and Min (2015) found that a shareholder-focused common law legal origin is significantly associated with higher emissions of CO 2 and that international agreements such as the Kyoto Protocol seem to have a more pronounced effect in shareholder-centric economies than other economies.…”

Section: Introductionmentioning

confidence: 99%

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Corporate boards and environmental offence conviction: evidence from the United Kingdom

Tauringana

Radičić

Kirkpatrick

et al. 2017

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PurposeThis paper reports the results of an investigation into the relationship between corporate boards and the likelihood of a firm being convicted of an environmental offence in the United Kingdom (UK). Design/Methodology/ApproachThe study uses a probit model to analyse the relationship between corporate boards and the likelihood of a firm being convicted of an environmental offence in the UK, controlling for firm size, financial leverage and profitability. FindingsThe results suggest that the likelihood of a firm being convicted of an environmental offence increases with board size, but decreases with the presence of a woman on the board. No support is found for our hypotheses about the proportion of outside directors and the presence of a lawyer on the board. Marginal effects results also show that adding one member to the board increases the chance of a firm being convicted for an environmental offence by 4.2% while having a woman on the board decreases the likelihood of a firm being convicted of an environmental offence by 31.8%. Research limitations/implicationsThe sample size of 55 firms is small which could affect the generalisability of the study. Originality/ValueThe study uses proprietary data obtained from the UK Environmental Agency to provide evidence for the first time how corporate boards affect the chances of a listed firm being convicted of an environmental offence in the UK.

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Section: Prior Studiesmentioning

confidence: 77%

Section: Introductionmentioning

confidence: 99%

Corporate boards and environmental offence conviction: evidence from the United Kingdom

Tauringana

Radičić

Kirkpatrick

et al. 2017

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“…Previous research (Ball et al , ) considered the kind of legal system of the countries to characterize their corporate governance model. Specifically, companies operating within codified law countries are seen as having a stakeholder orientation and companies within common law countries are seen as having a shareholder orientation (Kock and Min, ). In fact, the characterization of countries' corporate governance systems based on corporate worldviews (contractarianism versus communitarianism) is consistent with those obtained by Ball et al () using a legal system proxy.…”

Section: Theoretical Foundations Literature Review and Hypothesesmentioning

confidence: 99%

Institutional Constraints, Stakeholder Pressure and Corporate Environmental Reporting Policies

et al. 2017

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Within the theoretical framework of socio‐political economics, and more specifically of stakeholder theory, this work examines whether companies operating under different institutional constraints and stakeholder pressure tend to emphasize different models of corporate environmental reporting. Furthermore, the paper tests whether different corporate environmental reporting policies are driven by the countries' corporate governance systems. A sample of 3931 international companies was examined through a logistic biplot and conditional mean linear regression models. The main results reveal that companies follow two distinct environmental reporting approaches, which depend on specific stakeholders and institutional requirements. The first model, which is followed by firms within codified law countries, mostly focuses on water and emissions. The second approach, mainly followed by companies operating in common law countries, emphasizes materials and energy issues. This finding reveals that companies gradually modify their environmental strategies to make themselves more compatible with the characteristics of the social and institutional environment, which will result in several corporate benefits. The paper provides several outstanding implications for companies' strategic managers, national institutions and firms' stakeholders, especially for investors and customers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

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“…Individualistic countries (i.e., those exhibiting a common-law legal system) are mainly found in the U.S. and other Anglo Saxon countries [161]. These countries have a shareholder orientation [162] because the primary purpose of their firms consists in maximizing shareholder wealth. Haake [159] (p. 720) defines individualistic business systems as systems "in which actors safeguard their individual autonomy through loose interfaces" and therefore have the power to define corporate responsibility for themselves [161], creating a lot of freedom for the shareholders.…”

Section: The Moderating Role Of Approaches To the Measurement Of Corpmentioning

confidence: 99%

“…This situation generates key responsibilities not only towards shareholders [161]. Accordingly, these countries have a stakeholder orientation [162], and therefore are more likely to attain higher levels of CSP.…”

Section: The Moderating Role Of Approaches To the Measurement Of Corpmentioning

confidence: 99%

Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis

Ortas

Álvarez

Zubeltzu³

2017

Sustainability

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This paper investigates the influence of organizations' board independence on corporate social performance (CSP) using a meta-analytic approach. A sample of 87 published papers is used to identify a set of underlying moderating effects in that relationship. Specifically, differences in the system of corporate governance, CSP measurement models and market conditions have been considered as moderating variables. The results show that the independence of a company's board positively influences CSP. This is because companies with more independent directors in their boards are more likely to commit to stakeholder engagement, environmental preservation and community well-being. Interestingly, the results also show that the positive connection between board independence and CSP is stronger in civil law countries and when CSP is measured by self-reporting data. Finally, the strength of the influence of the independence of a firm's board on CSP varies significantly in different market conditions. The paper concludes by presenting the main implications for academics, practitioners and policy makers.

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Legal Origins, Corporate Governance, and Environmental Outcomes

Cited by 42 publications

References 56 publications

Corporate boards and environmental offence conviction: evidence from the United Kingdom

Corporate boards and environmental offence conviction: evidence from the United Kingdom

Institutional Constraints, Stakeholder Pressure and Corporate Environmental Reporting Policies

Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis

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