Managerial Entrenchment and Corporate Social Performance
By Jordi A. Surroca, J. Tribó. 2008
391 citations recorded by the source corpus.
We examine empirically the relationships amongst managerial entrenchment practices, social performance, and financial performance. We hypothesize that entrenched managers may collude with non-shareholder stakeholders in order to reinforce their entrenchment strategy; this is particularly so in firms that have efficient internal control mechanisms. Moreover, we prove that the combination of entrenchment strategies and the implementation of socially responsible actions have particularly negative effects on financial performance. We test these contentions with a sample of 358 companies, from 22 different countries, for the period 2002-2005. Copyright (c) 2008 The Authors Journal compilation (c) 2008 Blackwell Publishing Ltd.
Subfields: Accounting, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/31eea9854535b88408e2e3b6712d6494087a0fa2
How researchers see this paper
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In Accounting
- S. Dorobantu
- Lite J. Nartey
- A. Cheung
- Haithem Nagati
- Mehdi Nekhili
- Tawhid Chtioui
- James E. Mattingly
- Giovanna Michelon
In Strategy and Management
- S. Dorobantu
- Lite J. Nartey
- A. Cheung
- James E. Mattingly
- Giovanna Michelon
- C. Mallin
- Michele Fabrizi
- W. Henisz
Citations in the corpus
- Determinants and Economic Consequences of Non-financial Disclosure Quality (2016, neutral): “Literature in support of this argument includes Wright and Ferris (1997), Pagano and Volpin (2005), Surroca and Tribo (2008), and Cronqvist, Heyman, Nilsson, Svaleryd, and Vlachos (2009), among others.”
- Corporate social responsibility and bank efficiency (2020, background): “, 2019) and increased power within the firm (Cespa and Cestone, 2007; Surroca and Tribó, 2008).”
- Does Community and Environmental Responsibility Affect Firm Risk? Evidence from UK Panel Data 1994-2006 (2011, neutral): “costly to shareholders, ( Surroca and Tribo, 2008 ), and that investors show weaker preferences for”
- The influence of corporate social responsibility on investment efficiency and innovation (2019, neutral): “…shareholder wealth and that CSR activities generate agency costs, placing firms at an economic disadvantage by benefiting other stakeholders at the expense of shareholders (Vance 1975; Aupperle et al. 1985; Pagano and Volpin 2005; Surroca and Tribo 2008; Cronqvist et al. 2009; Kruger 2015).”
- ESG performance and market value: the moderating role of employee board representation (2019, background): “Instead, they are more likely to view it as a strategy used by managers to get close to employees and other non-shareholder stakeholders so as to neutralize pressure from shareholders (Surroca & Trib (cid:1) o, 2008).”
- All in the family? Social performance and corporate governance in the family firm (2012, background): “In a cross-national study Surroca and Tribo (2008) provide evidence that entrenched management may view social performance as a means of garnering stakeholder support to offset potential shareholder challenges.”
- Corporate Social Performance: A Review of Empirical Research Examining the Corporation–Society Relationship Using Kinder, Lydenberg, Domini Social Ratings Data (2017, background): “Furthermore, although some argue that CSP can represent an agency problem in that managers may use CSP for entrenchment purposes, protecting themselves from the consequences of poor economic performance (Surroca & Tribo, 2008), recent empirical research has indicated otherwise.”