Vertical Interlock and Firm Value: The Role of Corporate Innovation

Cao, Shaopeng; Zhen-ming, Fang; Pu, Wenyan; Ruan, Yi-Yin

doi:10.1080/1540496x.2021.1927699

Cited by 7 publications

(7 citation statements)

References 56 publications

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“…Table 8 reports the regression results of the Heckman two‐stage method. The regression results of the first stage show that there is a significant positive correlation between the tenure of the chairperson and the vertical interlocking of executives, which is contrary to the results of Cao et al (2022). On the one hand, a chairperson with a long tenure has a greater degree of control over the listed company; on the other hand, he or she has more opportunities to contact affiliated parties, so he or she is more likely to serve as a senior executive in the major shareholder enterprise.…”

Section: Resultscontrasting

confidence: 98%

“…reports the regression results of the Heckman two-stage method. The regression results of the first stage show that there is a significant positive correlation between the tenure of the chairperson and the vertical interlocking of executives, which is contrary to the results ofCao et al (2022). On the one hand, a chairperson with a T A B L E 6…”

mentioning

confidence: 79%

“…Vertical interlock (Verlock). Based on previous studies, we define the longitudinal part‐time position of senior executives as a senior executive (chairperson or CEO) of a listed company who also holds a senior position in a major shareholder company (Cao et al, 2022; Pan & Han, 2016). Verlock is a dummy variable.…”

Section: Methodsmentioning

confidence: 99%

“…Referring to Cao et al (2022), we select the tenure of the chairperson of the board (Tenure) as an exogenous variable. The tenure of the chairperson is the key factor affecting the vertical interlocking of executives, but it does not directly affect ESG report greenwashing.…”

Section: Heckman Two-stage Approachmentioning

confidence: 99%

“…On the one hand, we take Chinese listed companies in emerging markets as the research object and supplement relevant research on the horizontal interlocking of executives in mature markets of developed countries by observing the vertical interlocking of executives. On the other hand, in terms of the vertical interlocking of executives, the existing research mainly focuses on the financial management decisions of enterprises, such as corporate cash holdings (Chen & Yang, 2021), corporate value (Cao et al, 2022) and investment efficiency (Opie et al, 2019). However, little is known about how enterprises manage information disclosure.…”

Section: Introductionmentioning

confidence: 99%

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Research on the masking effect of vertical interlock on ESG greenwashing in the context of sustainable Enterprise development

Liu

Hao

et al. 2023

Corp Soc Responsibility Env

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Based on impression management and principal‐agent theory, this article considers Chinese A‐share listed companies from 2014 to 2020 to explore whether vertical interlocking promotes the sustainable development of enterprises from the perspective of environmental, social, and governance (ESG) report greenwashing. The results show that vertical interlocking increases ESG report greenwashing and hides negative ESG information; these results remained valid through a series of robustness tests. Mechanism analysis shows that the purpose of ESG report greenwashing by vertically interlocked executives is to hollow out minority shareholders rather than to cover up earnings management to conceal actual ESG information. The vertical interlocking of executives more significantly promotes ESG report greenwashing when the property is state‐owned, has poor internal supervision mechanisms, has a large executive team and has no senior executives with green experience. This study furthers the relevant research on the factors affecting the sustainable development of enterprises and enriches and expands studies of the role of the vertical interlock from the perspective of information concealing, providing a more in‐depth reference for promoting the sustainable development of enterprises.

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Section: Resultscontrasting

confidence: 98%

mentioning

confidence: 79%

Section: Methodsmentioning

confidence: 99%

Section: Heckman Two-stage Approachmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Research on the masking effect of vertical interlock on ESG greenwashing in the context of sustainable Enterprise development

Liu

Hao

et al. 2023

Corp Soc Responsibility Env

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Board of directors and innovation: A state‐of‐the‐art review from a contingency perspective

Belkacemi,

Veilleux,

Roy

2024

Can J Adm Sci

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The link between the board of directors and innovation has received increasing interest from scholars, executives, and policymakers in recent years. Nevertheless, it remains somewhat cryptic, mainly due to limitations in terms of analytical frameworks, theoretical constructs, and methodological designs, as well as the absence of an approach that integrates the importance of contingencies. Thus, a systematic literature review at the junction of the highest strategic body (i.e., board of directors) and one of the most strategic organizational outcomes (i.e., innovation) proves to be an opportune exercise both from a scientific and practical perspective. Ultimately, the approach adopted in this study has led to the emergence of an integrative conceptual framework from a contingency perspective and various observations that dissect the impact of the board of directors on innovation based on a corpus of 114 articles published over a period of 33 years. Also, a research agenda and some key recommendations are derived from the in‐depth analysis conducted and constitute solid foundations on which to build tomorrow's studies in this research field.

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