Is corporate transparency the solution to political failure on our greatest problems? A discussion of Darendeli, Fiechter, Hitz, and Lehmann (2022)

Christensen, Hans B.

doi:10.1016/j.jacceco.2022.101542

Cited by 10 publications

(3 citation statements)

References 21 publications

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“…We acknowledge several limitations. First, we recognize that regulation does not occur in a vacuum (Leuz [2018]), and any improvements in social welfare in the covered countries are likely also attributable to concurrent diplomatic efforts and certification changes (Christensen [2022]). Although our DDD research design and additional analyses should help alleviate concerns that these forces explain our results, caution is war-ranted regarding our evidence's support of a direct causal outcome of supply chain transparency.…”

Section: Discussionmentioning

confidence: 99%

“…18 Because companies centralize and coordinate responsible sourcing efforts through these channels (e.g., RMI), compliance is far easier and more effective. Given this fact, it is difficult to isolate the effect of disclosure and due diligence programs (Christensen [2022]) on amelioration of the resource curse. However, the 2014 effective date of Section 1502's disclosure requirement permits us to estimate its incremental real effects because no other initiative with parallel aims took effect during the same year.…”

Section: Section 1502 Of the Dodd-frank Actmentioning

confidence: 99%

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The Real Effects of Supply Chain Transparency Regulation: Evidence from Section 1502 of the Dodd–Frank Act

BAIK,

EVEN‐TOV,

HAN

et al. 2024

J of Accounting Research

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Section 1502 of the Dodd–Frank Act requires SEC‐registered issuers to conduct supply chain due diligence and submit conflict minerals disclosures (CMDs) that indicate whether their products contain tantalum, tin, tungsten, or gold (3TG) sourced from the Democratic Republic of the Congo (DRC) or its neighboring countries (“covered countries”). Consistent with the reputational cost hypothesis, we find that heightened public attention to CMDs increases responsible sourcing. After Section 1502 takes effect, we find higher demand for 3TG products processed in certified smelters, decreased conflicts in covered countries’ mining regions relative to other regions, and reduced sensitivity of conflict risk to conflict minerals’ price spikes. Finally, we find that conflicts decrease in Eastern DRC territories with prevalent 3T (tantalum, tin, and tungsten) mines but increase in territories with prevalent gold mines. Overall, our findings highlight the real effects of enhanced supply chain transparency regulation.

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Section: Discussionmentioning

confidence: 99%

Section: Section 1502 Of the Dodd-frank Actmentioning

confidence: 99%

The Real Effects of Supply Chain Transparency Regulation: Evidence from Section 1502 of the Dodd–Frank Act

BAIK,

EVEN‐TOV,

HAN

et al. 2024

J of Accounting Research

View full text Add to dashboard Cite

show abstract

“…Studies from developed economies, which have distinct corporate governance structures and political affiliations compared to those in developing countries, indicate that political influence in democratic systems can have a beneficial impact on corporate social responsibility initiatives (Hasan and Jiang 2023). However, there is also critical examination of existing regulatory frameworks; for instance, Christensen (2022) challenges the effectiveness of relying solely on mandatory conflict mineral disclosures, currently the only relevant securities regulation in the U.S., and raises concerns about the adequacy of such reporting mandates in tackling broader issues like climate change.…”

Section: Literature Reviewmentioning

confidence: 99%

Do private firms invest more in environmental protection under political control? Evidence from China

Guo,

Wen,

2024

Environ. Res. Commun.

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For the first time, this study investigates the environmental performance outcomes of integrating local political committees into private firms. Using a nationwide survey of Chinese private firms, we find that the involvement of local party committees significantly bolsters corporate environmental investment. This finding remains consistent across various samples, alternative measures of the dependent variable, and different estimation methodologies. Notably, the influence of local party committees on pro-environmental practices is more pronounced in firms with lower family ownership, in regions with weaker environmental regulations, and where the owner is also the Party secretary. This study reveals local party committees as key mediators between government and firms, enhancing corporate engagement in environmental initiatives. It advocates for policies promoting collaboration between government and private firms, particularly emphasizing the strategic placement of party committees in firms with specific ownership and leadership characteristics to maximize environmental investment.

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Environmental Reporting, Corporate Governance, and Sustainable Development in Africa’s Mining Sector

Duho

2023

SDGs in Africa and the Middle East Region

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Is corporate transparency the solution to political failure on our greatest problems? A discussion of Darendeli, Fiechter, Hitz, and Lehmann (2022)

Cited by 10 publications

References 21 publications

The Real Effects of Supply Chain Transparency Regulation: Evidence from Section 1502 of the Dodd–Frank Act

The Real Effects of Supply Chain Transparency Regulation: Evidence from Section 1502 of the Dodd–Frank Act

Do private firms invest more in environmental protection under political control? Evidence from China

Environmental Reporting, Corporate Governance, and Sustainable Development in Africa’s Mining Sector

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