MNEs’ corporate governance disclosure: a strategic response to corrupt environments

Juliao‐Rossi, Jorge; Losada-Otálora, Mauricio; Católico-Segura, Diego Fernando

doi:10.1108/cg-12-2021-0465

Cited by 3 publications

(2 citation statements)

References 216 publications

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“…The level of disclosure in the observed reports is significantly low. One explanation might be that corruption by its nature is secret, complex, occult and sensitive and not popular with companies (Juliao-Rossi et al , 2022). It does not imply the same emotive weight as other business and social issues.…”

Section: Discussionmentioning

confidence: 99%

Corporate governance and anti-corruption disclosure

Previtali

Cerchiello

2023

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Purpose In recent years, the role of environmental, social and governance (ESG) disclosure has become crucial. The aim of this paper is to study how corporate governance affects one part of ESG disclosure: anti-corruption disclosure. Design/methodology/approach This study examined 140 corporate social responsibility (CSR) reports from companies listed on the Italian stock markets and 50 CSR reports from other companies, then this study analysed the adoption of the Global Reporting Initiative (GRI) standard no. 205. Findings The results show a low level of disclosure, and that corporate governance issues matter. In particular, the analysis found a positive relationship between the presence of female and outside members, the number of board members and the level of anti-corruption disclosure. Research limitations/implications This study acknowledges some limitations. Firstly, the research is based on a one-year sample. Secondly, the research hypotheses are confirmed only when considered in relation to a single section of the GRI standards. Thirdly, this study has a bias towards relatively large enterprises. Practical implications It could be worthwhile introducing a soft regulation regarding the composition of the board of directors that requires a certain quantitative and qualitative composition. Originality/value To the best of the authors’ knowledge, this is one of the few studies, the first in Italy, that sheds light on anti-corruption disclosure and its determinants.

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Section: Discussionmentioning

confidence: 99%

Corporate governance and anti-corruption disclosure

Previtali

Cerchiello

2023

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“…Only substantive innovation can contribute to economic growth. Strategic innovation does not lead to real economic growth but rather to a “patent bubble” of firms (Juliao‐Rossi et al, 2023). Therefore, this study aims to examine the impact of government environmental concerns on green innovation by heavy‐polluting firms and whether this has a “leverage” or “crowding‐out” effect.…”

Section: Introductionmentioning

confidence: 99%

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

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The objective of this study is to examine the impact of government environmental concerns on green innovation and whether this has a “leverage effect” or a “crowding‐out effect.” This study employs a two‐way fixed‐effects model to conduct an empirical test using panel data from 2010 to 2020 on Chinese firms listed in heavy‐polluting industries. The results suggest that an increase in government environmental concerns can promote corporate green innovation. However, government environmental concerns primarily stimulate strategic innovation rather than substantive innovation. After a series of robustness and endogeneity tests, the conclusions of this paper still hold. Corporate green innovation induced by government environmental concerns is not the “leverage effect” superimposed on existing innovation activities but the “crowding‐out effect” of other technological innovation. The heterogeneity tests in this paper indicate that the impact is more pronounced for firms with poorer environmental conditions, stronger political connections, and richer executive backgrounds.

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Influences of country-level factors on corporate governance adherence: an analysis of multinational corporations’ subsidiaries in India

Sharma,

Gerged,

Elheddad

et al. 2024

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Purpose This study aims to investigate the influence of institutional factors on corporate governance (CG) compliance within subsidiaries of multinational corporations (MNCs) operating in India, drawing on institutional and legitimacy theories. Design/methodology/approach The research approach uses a comparative analysis of CG compliance across MNC subsidiaries in India, focusing on the impact of institutional distance between home and host countries, the quality of national governance and the level of corruption in the host country. It further examines how these factors vary between secondary and tertiary industries and between subsidiaries originating in developed versus developing economies. The authors use a range of robust econometric techniques, including semi-parametric methods of panel data models, generalised method of moments and non-parametric method of panel quantile regression, to conduct a comprehensive analysis. Findings This study suggests three principal findings: First, certain institutional mechanisms, namely, national governance quality index (NGQI), institutional distance and host country corruption (CL), exert a substantial impact on corporate governance compliance index (CGCI) levels in MNC subsidiaries. The empirical evidence reveals a positive and significant relationship between CGCI and NGQI and a negative yet significant relationship with CL at a 1% significance level. Second, the influence of these institutional factors varies across different sectors, suggesting a differential susceptibility to institutional impacts between secondary and tertiary industries. Third, the role of institutional factors diverges based on the subsidiary’s country of origin. The data indicates that the compliance behaviours of subsidiaries from developed and developing economies are distinctly influenced, underscoring the pronounced effects of geographical and economic contexts on CG practices. Originality/value This research contributes to the existing literature by providing a comprehensive understanding of how institutional factors affect CG compliance in MNC subsidiaries, with a specific focus on India’s emerging economy. It offers original insights into the differential impacts of institutional factors across industries and origin countries, thereby providing practical recommendations for enhancing CG practices within MNC subsidiaries in emerging economies like India.

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MNEs’ corporate governance disclosure: a strategic response to corrupt environments

Cited by 3 publications

References 216 publications

Corporate governance and anti-corruption disclosure

Corporate governance and anti-corruption disclosure

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Influences of country-level factors on corporate governance adherence: an analysis of multinational corporations’ subsidiaries in India

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