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The mainstream research commonly considers perquisite consumption of top management team (TMT) as an agency cost, but some scholars insist on its rationality and call for an exploration of its potential benefits. This study attempts to investigate the effect of TMT perquisite consumption on a firm's R&D investment. We propose that perquisite consumption can promote information exchange and motivate top executives to increase R&D investment. Using a sample of 3,572 Chinese listed firms from 2008-2021, we find a positive effect of perquisite consumption on R&D investment, and such effect is stronger when firms have urgent needs for information gathering. In addition, we follow the agency problem perspective and find that the positive effect of perquisite consumption on R&D investment is weakened when the firm has a weak governance structure. The findings of this study deepen the understanding of TMT perquisite consumption by proposing its potential benefits and complement the research that investigates the effect of executive incentives on firm innovation. [ABSTRACT FROM AUTHOR]

We attempt to provide a novel view of the antecedent of selective engagement between external and internal CSR of firms. Specially, we investigate the influence of becoming a celebrity (e.g., winning a CEO award) on the CEO's intention to conduct corporate philanthropy (i.e., external CSR) or employee-related CSR (i.e., internal CSR). We find that, after becoming a celebrity, CEOs will conduct more corporate philanthropy because they attempt to maintain their social status among the social audience; and CEOs will do less employee-related CSR after becoming a celebrity because winning an award has already established their legitimacy inside the firm so that they feel unnecessary to do employee-related CSR. Furthermore, the media coverage strengthens the effects of CEO celebrity on corporate philanthropy and employee-related CSR. Findings from this study contribute to CEO social acclaim research and CSR literature by proposing the role of CEO celebrity in triggering firms' selective engagement in CSR. [ABSTRACT FROM AUTHOR]

Set in the context of transitional China, which was characterized by market fragmentation, this study examines whether geographic diversity of large shareholders (GDLS) may represent a widening horizon of firm's strategy and consequently improve firm performance. Drawing from strategy and organization theories, we provide alternative sets of hypotheses for understanding the GDLS behavior. Our empirical analysis was based on 798 listed firms in China from 2003-2013. Results show that GDLS is positively related to performance as measured by Tobin's q. Such performance effect is strengthened by organizational capabilities in governance and marketing; and is also mediated by these capabilities in governance and marketing. Furthermore, the better the performance effect of GDLS, the greater GDLS would improve organizational capabilities in governance and marketing. [ABSTRACT FROM AUTHOR]