The potential impact of managerial entrenchment on firms’ corporate social responsibility activities and financial performance: evidence from Iran

Salehi, Mahdi; Mahmoudabadi, Mahbubeh; Adibian, Mohammad Sadegh; Ranjbar, Hossein Rezaei

doi:10.1108/ijppm-06-2019-0259

Cited by 35 publications

(26 citation statements)

References 118 publications

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“…Arora & Dharwadkar, 2011;Barnea & Rubin, 2010;Kachouri et al, 2020;Malik, 2015;Surroca & Tribó, 2008) and a consideration of institutional contexts (e.g. Salehi et al, 2020;Surroca et al, 2020). Economic policy uncertainty is arguably an important institutional factor affecting strategic decision makers and organizational outcomes.…”

Section: Discussion and Conclusion And Future Researchmentioning

confidence: 99%

“…Surroca et al (2020) investigate whether firms' simultaneous adoption of managerial entrenchment provisions and CSR reinforces or undercuts one another in influencing firm financial performance, concluding that the institutional framework has a strong influence on their combined effect. Salehi et al (2020) examine the effect of managerial entrenchment on firm CSR in an Iranian context, finding a positive relationship between the two. Despite the important insights gained through the named studies, institutional contexts harbor an array of variables that play an important role in firm decision-making processes.…”

Section: Introductionmentioning

confidence: 99%

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Managerial entrenchment and corporate social responsibility engagement: the role of economic policy uncertainty

et al. 2021

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The behavioral theory of corporate governance is employed to investigate the relationship between managerial entrenchment and corporate social responsibility (CSR) engagement. Effective corporate governance is argued to reduce managerial entrenchment, thereby increasing CSR engagement. The role of economic policy uncertainty (EPU) is investigated as a moderating variable in this relationship, such that high levels of EPU will increase the impact of entrenchment on CSR engagement. These arguments are supported using a panel of 386 US firms from 2011 to 2018 representing 3,088 firm-year observations in a variety of industries. In supplementary analysis, the CSR measure is disaggregated in order to provide further insight regarding these relationships as they pertain to the individual CSR dimensions under study. Findings inform research regarding the entrenchment-CSR link in particular environmental contexts. Practical implications include potential governance guidelines for boards of directors; stakeholder management given the policy environment; and the impact of government decisions as they affect policy uncertainty, firm actions, and CSR engagement.

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Section: Discussion and Conclusion And Future Researchmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Managerial entrenchment and corporate social responsibility engagement: the role of economic policy uncertainty

et al. 2021

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“…Salehi et al (2020b) indicate a positive and significant relationship between managerial entrenchment and financial performance. They also indicate that there is also a positive and meaningful relationship between managerial entrenchment and corporate social responsibility activities.…”

Section: Theoretical Principles and Literature Reviewmentioning

confidence: 98%

The relationship between management entrenchment and financial statement fraud

Seifzadeh

Rajaeei

Allahbakhsh

2021

JFM

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Purpose This study aims to assess the relationship between managerial entrenchment and the chance of fraud in financial statements, which are the only available source for shareholders’ decisions, so their accuracy and reliability are of great importance. Hence, the realization of contributing factors to preventing financial information distortion is vital. Moreover, managerial entrenchment on the chance of fraud in the company’s upcoming years has also been analyzed. Design/methodology/approach The factor analysis of five variables [chief executive officer (CEO) duality, managerial ownership, board independence, board compensation and CEO tenure] is used for management entrenchment. To examine the hypothesis testing, multivariate regressions, feasible general least squares regression and Logit model regression are used. The statistical sample under study in this paper includes 1,122 year-company observations during 2013–2018 and Beneish’s (1999) model is used for evaluating fraud. Findings The study results show a negative and significant relationship between management entrenchment and the chance of fraud in financial statements. That means managers with a higher degree of managerial entrenchment are more likely to create value and acquire wealth for the firm, and that causes them not to waste and waste the firm resources through enhancing the supervisory mechanisms. Moreover, the study results also show that improving and strengthening management entrenchment will lower the upcoming years’ fraud condition. Originality/value The current paper is the first time that the relationship between managerial entrenchment and financial statement fraud is assessed within a study. The results of the paper help the beneficiaries and shareholders realize different aspects of management entrenchment. That means managers’ power and authority can be used to make shareholders’ interests, but they can hinder misuse and fraud.

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“…Hasil tersebut menunjukkan hasil yang setara dengan penelitian Hamza (2018) dan Salehi et al (2020) menyatakan bahwa monitor pemegang saham institusional harus dikurangi untuk mengurangi konflik kelembagaan. Dengan adanya kegiatan monitor ini maka akan mengarahkan manajemen untuk bertindak demi kepentingan pemegang saham.…”

Section: Pengaruh Kepemilikan Institusional Dengan Kinerja Perusahaanunclassified

Analisis Hubungan Manajemen Laba dan Struktur Kepemilikan Terhadap Kinerja Perusahaan di BEI Tahun 2016-2019

Dewi¹,

Lisa²

2021

Owner

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Firm performance includes the activities produced by company management and high firm performance can be said to allow them to plan their work according to their own goals and take risks with full responsibility. This study was conducted to determine the effect of earnings management, the size of the board of directors, and ownership structure (blockholders ownership, institutional ownership, family ownership, and managerial ownership) on the firm's performance. By using sample data listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. Because there are several previous studies that produce different values ?? on firm performance. Therefore, it is necessary to re-examine this. In this study using the firm's performance with Tobin's Q model to determine the value of asset management generated by the company. The data used is panel data with secondary data collection techniques to test outliers by SPSS software version 25, then test descriptive statistics, multicollinearity, heteroscedasticity, R Square, F test, and also t-test using Eviews software version 10. The results of this study conclude that both accrual-based and real earnings management have a significant positive effect on firm performance, while the size of the board of directors has a significant negative effect on performance. The ownership structure has no significant effect on the firm's performance. The result of insignificant results could be caused by not supporting the agency theory perspective, as well as the lack of company control.

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The potential impact of managerial entrenchment on firms’ corporate social responsibility activities and financial performance: evidence from Iran

Cited by 35 publications

References 118 publications

Managerial entrenchment and corporate social responsibility engagement: the role of economic policy uncertainty

Managerial entrenchment and corporate social responsibility engagement: the role of economic policy uncertainty

The relationship between management entrenchment and financial statement fraud

Analisis Hubungan Manajemen Laba dan Struktur Kepemilikan Terhadap Kinerja Perusahaan di BEI Tahun 2016-2019

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