Institutional Ownership and Firm Performance under Stakeholder-Oriented Corporate Governance

Sakawa, Hideaki; Watanabel, Naoki

doi:10.3390/su12031021

Cited by 77 publications

(88 citation statements)

References 66 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In recent decades, as a result of financial globalization the number of bank shares owned by large and institutional shareholders has grown rapidly [8,9]. Their role is essentially that of monitoring bank management [9,10] in order to improve firm value and performance, although this supervisory role can sometimes be reduced by strict regulation [11,12]. For instance, large and institutional shareholders can contribute to reducing managerial myopia, i.e., raising management awareness of investments characterized by longer-term positive net present value than short-term projects [13].…”

Section: Introductionmentioning

confidence: 99%

“…For instance, large and institutional shareholders can contribute to reducing managerial myopia, i.e., raising management awareness of investments characterized by longer-term positive net present value than short-term projects [13]. Moreover, they can help to mitigate asymmetric information problems [14,15] by encouraging managers to avoid under-investments [9], concentrating on more profitable operations. Our study expands the existing literature on the relationship between short-and long-term relevant investors and banks' performance, and it is one of few studies investigating the role of long-term relevant investors on risk in the banking sector, which, to our knowledge, has not previously been specifically investigated.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Effect of Multiple Large Shareholders on Banks’ Profitability and Risk

et al. 2021

View full text Add to dashboard Cite

The wide-ranging academic literature on corporate governance in the banking sector includes only a few studies on bank ownership and, specifically, on the comparative power of shareholders within the corporate structure. This paper reports an investigation into the presence of multiple large shareholders and their influence on profitability and risk in the long-term, considering a sample of 697 U.S. and European listed commercial banks from 2008 to 2018. It was found that the number of large and institutional shareholders has a positive impact on profitability, but no effect on risk. However, long-term ownership by multiple large shareholders contributes to decreasing risk in banks.

show abstract

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Effect of Multiple Large Shareholders on Banks’ Profitability and Risk

et al. 2021

View full text Add to dashboard Cite

show abstract

“…He contemplated in his research the divergence between the economic perspective on the firm and the legal perspective. [17] The shareholder-oriented research and the agent theory studies converge in the economic sphere and set the premises for the development of research related to the accountability of boards and managerial performance [18][19][20]. Research regarding the assessment of social responsibility of public authorities points to a need for recognizable initiatives towards the achievement of sustainable development [21], as well as for comparative factors of socially responsible behaviors between public and private entities [22].…”

Section: Introductionmentioning

confidence: 99%

Convergent Insights for Sustainable Development and Ethical Cohesion: An Empirical Study on Corporate Governance in Romanian Public Entities

et al. 2020

View full text Add to dashboard Cite

The global financial crisis was decisive in reanalyzing the role of corporate governance based on the accountability and ethics of governance practices and its impact on sustainable development. The study aims to analyze the relevance of and the interdependencies between financial governance assessment indicators and income efficiency with synergetic effects on sustainable development and social cohesion, offering a distinct contemplation on errors in governance and financial reporting. Deviations concerning the accuracy of financial statements, flaws in the process of budget creation and budgetary execution, poor implementation of internal control systems, non-compliance with procedures of public procurement contracts, and ineffectiveness in sound financial management represent barometers for assessing managerial accountability in the public sector. This study is based on data reported by the Romanian Court of Accounts processed with the principal component analysis and proposes a global efficiency index as a benchmark indicator barometer in order to analyze the influence of managerial accountability and sustainable reporting compliance on revenue reported by public institutions in Romania. The results of the study are of empirical importance and explore the constant need to evaluate managerial accountability and ethics, with an emphasis on error, in order to improve public governance and enhance corporate accountability.

show abstract

“…It should be added that institutional investors, in particular large pension funds, prefer investing in long-term stable companies. A chance for such stability is provided by an appropriate long-term strategy, taking into account CSR assumptions (Deakin and Hobbs, 2006;Sakawa and Watanabel, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Profitability of Corporate Social Responsibility Activities from the Perspective of Corporate Social Managers

Zieliński¹,

Jonek-Kowalska²

2020

ERSJ

View full text Add to dashboard Cite

Purpose: The purpose of the article is to determine the intensity of CSR activities undertaken by enterprises in Poland and to assess their profitability in terms of stakeholder groups. Design/Methodology/Approach: Questionnaire surveys were conducted on a representative group (by size and sectors of the economy) of 722 large and medium-sized enterprises in Poland in 2019. Respondents were CSR managers, among which three groups of people were identified for whom managing CSR is the only responsibility, is one of the basic responsibilities, CSR activities are one of the many responsibilities. The research hypotheses set out in the article regarding the intensity and profitability of CSR activities directed at individual stakeholders, as well as the complementarity of these activities and the characteristics of the respondents that differentiate their responses, were verified using arithmetic means, Pearson correlation coefficients and Chi-squared test. Findings: Research results indicate that enterprises direct CSR activities to primary stakeholders in the first place. Also, the profitability of CSR activities is usually higher valued in the case of primary stakeholders, while activities directed to the local community and the natural environment received higher ratings than activities directed at public authorities and capital providers. Respondents treat CSR activities directed at all stakeholders as complementary. The respondents' strongest opinions about the orientation of CSR activities and their profitability differentiate the workplace next is sector of the economy and the size of the enterprise has the least difference in assessment. Practical Implications: The results obtained encourage corrections of strategic directions of CSR activities, in the form of an increase in the importance (intensity) of CSR activities directed to local communities and the natural environment. Originality/Value: The research presented is so innovative that CSR managers were selected as the group of respondents. Assuming that the directions (intensity) of CSR activities are adopted (imposed) at the strategic level, the profitability of these activities determined at the operational level verifies the correctness of their orientation.

show abstract

Institutional Ownership and Firm Performance under Stakeholder-Oriented Corporate Governance

Cited by 77 publications

References 66 publications

The Effect of Multiple Large Shareholders on Banks’ Profitability and Risk

The Effect of Multiple Large Shareholders on Banks’ Profitability and Risk

Convergent Insights for Sustainable Development and Ethical Cohesion: An Empirical Study on Corporate Governance in Romanian Public Entities

Profitability of Corporate Social Responsibility Activities from the Perspective of Corporate Social Managers

Contact Info

Product

Resources

About