Board diversity and corporate social performance in family firms. The moderating effect of the institutional and business environment

Gavana, Giovanna; Gottardo, Pietro; Moisello, Anna Maria

doi:10.1002/csr.2478

Cited by 11 publications

(7 citation statements)

References 105 publications

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“…The control variables were selected based on previous research, including the number of directors (DIRSIZE) (Roiston & Harymawan, 2022), number of commissioners (COMSIZE) (Guan et al, 2016; Ningsih et al, 2021), and independent directors (INDCOM) (Muttakin et al, 2018) to represent good corporate governance. Firm size (FIRMSIZE) (Abdullah et al, 2023) and leverage (LEV) (Cahyono, Harymawan, & Kamarudin, 2023) were chosen to represent company characteristics, while return on assets (ROA) (Ningsih et al, 2021) and loss (LOSS) were selected as profitability ratios to represent company performance, as in Guan et al (2020). The definitions of the variables used in this study for further information are listed in Table 2.…”

Section: Data and Research Methodologymentioning

confidence: 99%

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

Soeprajitno,

Ningsih,

Harymawan

et al. 2023

Sage Open

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The objective of this study is to investigate the impact of school ties between top management executives, such as the Chief Executive Officer and Chief Financial Officer, and external parties, including auditors, on a company’s earnings management practices. This study uses fixed effect regression method to test the hypotheses, whether school ties between top management executives and audit partner will affect on the practical earnings management. The authors obtained sample from Indonesia Stock Exchange Commission during 2010 to 2022 and includes several causality tests to robust the empirical result from current study. Our findings suggest a noteworthy positive association between school-ties linking the Chief Executive Officer (CEO) and the Auditor with Earnings Management. However, our analysis reveals that other combinations of school ties exhibit an opposite effect. The findings of this study suggest that ties between internal and external parties within a company may be a factor that investors should carefully consider when evaluating the accuracy and reliability of financial reports. As such, it may be prudent to avoid investing in such companies. Despite prior research extensively examining the measurement of accrual-based earnings management, the literature lacks discussion regarding its association with the potential influence of ties. Thus, this study aims to fill this gap by investigating the relationship between top management school ties and earnings management.

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Section: Data and Research Methodologymentioning

confidence: 99%

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

Soeprajitno,

Ningsih,

Harymawan

et al. 2023

Sage Open

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“…Family firms may behave differently towards environmental performance depending on the presence of family directors on the board (L opez-Gonz alez et al, 2019), a further and peculiar source of demographic board diversity for family businesses (Gavana et al, 2023). Family involvement in management may influence negatively or positively strategic decisions, such as engagement in social and environmental activities.…”

Section: Family Members On the Board And Environmental Performancementioning

confidence: 99%

The effect of board diversity and tenure on environmental performance. Evidence from family and non-family firms

Gavana,

Gottardo,

Moisello

2023

JFBM

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PurposeThe aim of this paper is to examine the effect of structural and demographic board diversity as well as board tenure on family firms' environmental performance, by analyzing the differences between family and non-family businesses and within family firms.Design/methodology/approachTobit regressions are applied to investigate the effect of independent directors, CEO non-duality, board gender diversity and board tenure on environmental performance. The study also controls for other board and firm characteristics, as well as for time, industry and country-fixed effects. In doing so, the authors rely on a sample of non-financial listed firms from France, Germany, Italy, Spain and Portugal over the period 2014–2021.FindingsThe authors find that women on the board positively influence environmental performance and this effect is significant only in family firms, although board tenure negatively moderates the relationship. Board independence significantly affects environmental performance only in non-family firms. A strong presence of family directors has a negative effect on family firms' environmental performance, especially when directors' turnover is low.Originality/valueThis paper examines the unexplored relationship between structural board diversity and environmental performance in family companies. This study provides empirical evidence on the association between gender diversity and family firms' environmental performance focusing for the first time on a European setting. Moreover, this study provides evidence of a different effect of board tenure in family and non-family businesses.

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“…The existing studies have explored the determinants of corporate carbon performance mainly from the perspectives of board and managerial characteristics. In terms of board characteristics, Haque (2017) shows that both board independence and gender diversity positively influence the firm’s carbon reduction initiatives; Moussa et al (2020) show that board environmental orientation improves corporate carbon performance; Cahyono et al (2023) suggest that board tenure diversity is an important driver for the firm to reduce carbon emissions. In terms of managerial characteristics, Jiang et al (2022) find that enhancing executives’ low-carbon cognition promotes low-carbon practices in high-tech and manufacturing firms.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Firms are the major carbon emitters and thus are expected to take the responsibility to reduce carbon emissions. Against such background, the existing literature has explored the determinants of corporate carbon performance, such as board characteristics (Cahyono et al, 2023; Haque, 2017; Moussa et al, 2020), managerial characteristics (Jiang et al, 2022; Wagner & Fischer‐Kreer, 2023), environmental information disclosure (Qian & Schaltegger, 2017), and internal carbon pricing (Zhu et al, 2022). Meanwhile, the government is the leader and manager of low-carbon economy, and its guiding role in regulating firms’ low-carbon development practices cannot be overlooked.…”

Section: Introductionmentioning

confidence: 99%

“…Second, our study contributes to the emerging literature on the determinants of corporate carbon performance. The existing literature largely focuses on how various internal factors of the firm influence its carbon performance, such as board characteristics, managerial characteristics, environmental information disclosure, and internal carbon pricing (Cahyono et al, 2023; Haque, 2017; Jiang et al, 2022; Moussa et al, 2020; Qian & Schaltegger, 2017; Wagner & Fischer-Kreer, 2023; Zhu et al, 2022). However, little is known about the role of the government in shaping corporate carbon performance.…”

Section: Introductionmentioning

confidence: 99%

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Do Government Environmental Subsidies Improve Corporate Carbon Performance? Evidence From China

Luo,

Liu,

Liu

2023

The Journal of Environment & Development

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Improving corporate carbon performance is imperative for sustainable economic and social development. Using a sample of Chinese A-share-listed manufacturing firms from 2012 to 2019, this study explores how government environmental subsidies affect corporate carbon performance. The baseline results show that government environmental subsidies are positively associated with corporate carbon performance, suggesting an improving effect of government environmental subsidies on corporate carbon performance. These results are robust to a set of sensitivity tests. Further, the channel analyses show that government environmental subsidies improve corporate carbon performance by alleviating financial constraints and enhancing environmental information disclosure. Moreover, cross-sectional analyses show that the improving effect of government environmental subsidies on corporate carbon performance is stronger in state-owned enterprises, in firms with higher executive environmental awareness, and in firms with higher media attention. This study provides meaningful insights for the government seeking to promote low-carbon development through environmental subsidies.

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Board diversity and corporate social performance in family firms. The moderating effect of the institutional and business environment

Cited by 11 publications

References 105 publications

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

The effect of board diversity and tenure on environmental performance. Evidence from family and non-family firms

Do Government Environmental Subsidies Improve Corporate Carbon Performance? Evidence From China

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