The liabilities of foreign institutional ownership: Managing political dependence through corporate political spending

Shi, Wei; Cheng, Guangquan; Aguilera, Ruth V.

doi:10.1002/smj.3211

Cited by 38 publications

(25 citation statements)

References 110 publications

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“…With respect to another popular political tactic, campaign contributions, the current literature does not suggest that this is a major area of interest. The only two papers that touch upon this issue in our database are Calluzzo, Dong, & Godsell ( 2017 ) and Shi, Gao, & Aguilera ( 2021 ). The former studies the investment of foreign sovereign wealth funds (SWFs) in US-based firms.…”

Section: Notesmentioning

confidence: 99%

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

et al. 2021

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Multinational enterprises are deeply engaged in nonmarket strategy (NMS), including both corporate political activity (CPA) and strategic corporate social responsibility (SCSR). In this review, we document the multinational NMS research according to contributions’ theme, method, context, theory, and level of analysis. We then develop an institutional multiplicity framework to organize our analysis of this large and fragmented body of literature. In so doing, we identify the most impactful contributions within three major themes – multinational CPA, multinational SCSR, and the integration of CPA and SCSR – and their respective subthemes, and call attention to limitations in the extant research. We also highlight promising avenues for future research, including expanding the scope of NMS to incorporate microfoundations research, integrating macrolevel scholarship on global institutions, placing greater attention on the interaction between CPA and SCSR, and incorporating multi-actor global issues and movements. Our review underscores the growing importance and missed opportunities of NMS research in the international business field.

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Section: Notesmentioning

confidence: 99%

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

et al. 2021

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“…Heavy foreign institutional investment can lead to increased political and regulatory scrutiny. Shi, Gao, and Aguilera (2021) find that firms with heavy foreign institutional investment manage and mitigate these risks by investing in CPA.…”

Section: Predictors Of Cpamentioning

confidence: 97%

How and Why? A Review of Corporate Political Activity Predictors and Actions

Brown

Rasheed

Bell

2022

Group & Organization Management

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In this review, we provide a framework for understanding both the predictors and approaches of CPA that firms undertake to achieve their objectives. We identify the predictors of CPA and classify them into two distinct categories: internal and external. In addition, we suggest that CPA approaches will vary depending on the firm’s goal to either manage or mitigate regulation and legislation as compared to attempting to pass new bills into law. We conclude by suggesting several future CPA research directions for management scholars.

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“…The solvency of a company mainly refers to its ability to repay its debts, especially whether the company has enough assets to offset its debts [12]. Therefore, if a different measurement basis is used for FA and Fl, it will directly affect the calculation of the corporate solvency ratio.…”

Section: Trigger Changes In Solvency and Accounting Profitsmentioning

confidence: 99%

Accounting Mismatch of Enterprise Assets and Enterprise Liabilities

Yang¹

2021

Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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The difference in measurement basis makes companies have serious accounting mismatch problems when accounting for FA (Financial Assets) and Fl (financial liabilities), which leads to the instability of owner's equity accounts and income statement accounts. Fair value measurement has the same measurement characteristics used to calculate the liabilities and assets of enterprises, and its proposal and application can well improve the problem of accounting mismatches. Therefore, the purpose of this article is to study the accounting mismatch between corporate assets and corporate liabilities. This article analyzes the related concepts of corporate financial accounting and compares the new and old financial instruments. This article summarizes the consequences caused by the accounting mismatch of corporate assets and corporate liabilities, and proposes a plan to alleviate the accounting mismatch.

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The liabilities of foreign institutional ownership: Managing political dependence through corporate political spending

Abstract: The benefits of foreign institutional ownership (FIO) have been amply researched, but there are also potential downsides to such ownership. High FIO can subject a firm to heightened regulatory scrutiny and compliance, increasing its political depen

Cited by 38 publications

References 110 publications

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

How and Why? A Review of Corporate Political Activity Predictors and Actions

Accounting Mismatch of Enterprise Assets and Enterprise Liabilities

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