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In the present article, we propose the concept of the HR function's relational activities and examine its influence on the firm's human capital resources (HCRs) and performance. Integrating insights from various streams of research in strategic human resource management (HRM) and strategic human capital, we develop a relational perspective of the HR function and propose the relational activities as the HR function's advisory and informative activities toward its internal stakeholders (i.e., line managers, employees, and senior managers) to help the stakeholders meet their goals and needs. In our framework, we theorize how the HR function's relational activities lead to superior firm performance by enhancing the firm's HCRs and identify the firm's strategic HR systems and human capital losses as factors that complement and necessitate the HR function's relational activities, respectively. Using a five‐wave, nationally representative panel dataset covering 1415 firm observations, we find robust support for our hypotheses: the HR function's relational activities were positively related to HCRs, which was more pronounced when coupled with high levels of strategic HR systems and human capital losses. The HCRs, in turn, transmitted the effects of the relational activities on the firm's subsequent operational and financial performance. Overall, these findings develop strategic HRM theory by contributing a more comprehensive conceptualization of the HR function's role in the strategic HRM process and by revealing its effects on firm performance along with key moderators. [ABSTRACT FROM AUTHOR]

Grounded in both agency and upper echelons perspectives, this paper examines the effects of chief executive officer (CEO) narcissism and power on corporate reporting on the Sustainable Development Goals (SDGs). We theorise that CEOs' narcissistic tendencies and power will influence their firms' SDGs engagement and reporting practices. We also examine whether SDGs reporting affects firm performance. Based on a sample of FTSE 100 companies for the period 2018–2022, we test our ideas using generalised estimating equations. The results show that CEO narcissism is positively related to SDGs reporting; however, this effect is weaker in firms led by older narcissistic CEOs. Further, CEO power is negatively associated with SDGs reporting, suggesting that firms led by powerful CEOs are reluctant to integrate the SDGs. Finally, corporate SDGs reporting lacks any value‐enhancing effect on firm performance, supporting the symbolic perspective of sustainability management. Our results contribute to the literature on SDGs accounting and enrich our understanding of the underlying dynamics shaping corporate disclosure practices. [ABSTRACT FROM AUTHOR]

This study examines the relationship between partial privatisation (i.e., state ownership reduction) and green innovation in China. Employing a large dataset of 36,072 firm‐year observations between 2005 and 2022, we document a positively significant association between partial privatisation and green innovation, suggesting that privatisation promotes green innovation in Chinese firms. Further analyses shows that the relationship is stronger for firms in environmentally sensitive industries and those located in more developed regions. Our main finding is robust to the alternative measurement of variables and endogeneity concerns using the propensity score matching (PSM), firm‐fixed effects and the system generalised method of moments (GMM) approach. Finally, we document that green innovation in privatised firms yields superior performance. Our findings highlight the significant contribution of privatisation in the quest for low‐carbon emissions in China by promoting green innovation. [ABSTRACT FROM AUTHOR]

We examine impact of corporate governance on firm performance following the implementation of the changes to the Code of Corporate Governance of Pakistan in 2012. Our sample period from 2008 to 2022 include periods of political instability and shifts in Pakistan's political landscape, providing an opportunity to examine the effectiveness of corporate governance mechanisms in enhancing accounting‐ and market‐based firm performance measures. We find significant improvements attributed to reforms in the regulatory framework surrounding corporate governance practices particularly from expanded scope and composition of boards and audit committees. This led to broader capabilities and effective controls, thus improving firm performance and investor confidence more so during periods of political instability and changes in political ideology. [ABSTRACT FROM AUTHOR]

We are examining the impact of benefit corporation certification on the profitability of UK companies, taking into account their capital structure. We contribute to the literature that scrutinizes the financial ramifications of Benefit Corporation Certification. Analyzing UK Certified Benefit Corporations (CBCs) and their noncertified counterparts using a difference‐in‐differences analysis, we find that the performance of CBCs with a capital structure heavily weighted towards debt declines in comparison to non‐CBCs, using Return on Assets as a measure of financial performance. Conversely, the performance of CBCs with a capital structure primarily composed of equity is comparable to that of non‐CBCs. [ABSTRACT FROM AUTHOR]

This research presents novel insights into the relationship between environmental performance and firm performance, focusing on the moderating role of board governance. Unlike the single‐dimensional examination in previous studies, we examine five board variables collectively in our moderator analysis. Employing ordinary least squares regression and a series of robustness tests, we investigate 582 European listed firms across various industries from 2016 to 2021. Our findings reveal a positive influence of environmental performance on firm performance, measured by Tobin's Q and ROA. Furthermore, we find that board independence, gender diversity and audit committee independence moderate this relationship. To address potential endogeneity issues, we employ GMM modelling. This study significantly contributes to the environmental performance and firm performance literature by offering evidence on the moderating role of board mechanisms. Moreover, it offers valuable insights for policymakers and practitioners, highlighting the need to monitor corporate boards for improved environmental and financial outcomes. [ABSTRACT FROM AUTHOR]

Despite several studies on corporate social responsibility (CSR) and innovation on firm performance, the extent to which different CSR practices interacts with distinct innovation types in enhancing firm performance remains underexplored. We draw on contingency theory to examine how internal and external CSR interacts with exploitative and explorative innovation to improve firm performance. We discuss the interaction effects using a panel dataset of 1156 publicly listed Chinese firms that disclosed CSR and innovation information from 2008 to 2019. The results indicate that firms with high‐internal CSR benefit to a greater extent from explorative innovation than from exploitative innovation as a means of enhancing performance. In contrast, firms with high‐external CSR benefit to a greater extent from exploitative innovation than from explorative innovation to improve performance. We contribute to strategy and CSR literature by revealing how firms match specific CSR practices with distinct innovation types to enhance firm performance. [ABSTRACT FROM AUTHOR]

The importance of international environmental strategies in the business sphere has gained recognition in recent times. These strategies not only have the potential to generate competitive advantages but also to maintain them over time. However, despite their increasing relevance, differences in outcomes and implementation implications exist, suggesting the need for a more detailed analysis of the determinants and consequences of these practices. Based on original data from 251 Spanish wineries and using structural equation modeling, this study explores how internationalization can drive the implementation of environmental practices and financial performance by investigating the role of proactive environmental strategy and the mediating effect of eco‐innovation. Our findings demonstrate that a proactive environmental strategy has a positive impact on both internationalization and eco‐innovation. Furthermore, it was found that the internationalization strategy has a significant positive effect on eco‐innovation. The more internationalized companies are, the more likely they are to engage in eco‐innovation. Eco‐innovation is crucial for increasing profits in international markets. While internationalization alone does not guarantee higher profitability, combining it with eco‐innovations significantly improves the financial performance of companies, highlighting the importance of sustainability and environmental innovation in global business strategy. [ABSTRACT FROM AUTHOR]

This study attempted to inspect the influence of green transformational leadership (GTL) on the development of business performance (FP) and environmental performance (EP) in SMEs of Vietnam with a mediating of green innovation (GI). Besides, the current study evaluated the positive impact of GTL on green human resource management (GHRM) and green thinking (GT), and ultimately on GI. The study investigated the hypotheses supplied by 416 survey samples from managers and directors at SMEs using structural equation modeling. Our findings reveal that GTL significantly influences the three green criterias, GHRM, GT, and GI. It investigates the impact of green factors in the context of Vietnamese SMEs. Specifically, the uniqueness of this study lies in examining the mediating role of GI with respect to the link between GTL and EP, FP, to compare how the indirect effects of GTL on EP and FP differ under the same conditions. Besides, the finding highlights that businesses will benefit from continual GI regarding the environment, earnings, and corporate image. Thus, the implications arising from this study and related documents contribute to helping managers understand the needs and benefits of green factors, thereby prioritizing the transmission of green goals to employees via vision and mission, thereby creating a new cultural dimension that contributes to the natural environment's sustainability. Furthermore, managers are urged to recruit, inspire, and provide opportunities for green human resources to use their potential for enhancing green products and processes to build the business and contribute to the environment. [ABSTRACT FROM AUTHOR]

Drawing on human capital theory, we explore the impact of global mobility on individuals and their employing firms. We also investigate the role of cultural distance between workers who move across country borders and the local culture, and the role that HRM may play to improve capitalizing on global talent mobility. We use a big data set comprising the entire population in one country, including about 30,000 expatriates from 143 countries employed by 15,000 firms, over 11 years of data covering about 100,000 observations on expatriates and 80,000 on their firms. Our findings support the existence of positive impact of global firms on performance (6.7% higher revenues after labor costs) and individuals' wages (10%–20% higher salaries). Both relationships are statistically and economically significantly influenced by cultural distance for the performance of global firms, leading to HRM implications. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between firms' sustainability practices and their value during a crisis when overall trust and support are lacking in the economy. While a handful of studies explore this research agenda concentrating on the US context and a standalone crisis, we provide novel evidence on the Asia Pacific region considering three global crises. Applying difference‐in‐differences regressions, we find that high‐sustainability companies posted superior value during the global financial crisis and the European debt crisis. This result, however, does not hold for the COVID‐19 crisis. This key finding passes several endogeneity tests (firm‐fixed effect, propensity score matching, and post‐crisis interaction). As we explore potential mechanisms of firm resistance during crises and apply a triple difference approach, we find evidence that firm value was intensified during the crises due to sustainability activities coupled with high customer loyalty, high institutional ownership, and a low degree of information asymmetry. Finally, although high sustainability performance generally positively impacted firm value during crises, this relationship was negative (weaker) for the highly impacted industries (the emerging countries) included in the sample. Our key finding continues to hold for a set of robustness checks. The outcome of this study provides significant policy directions to regulators, corporate managers, and investment professionals. [ABSTRACT FROM AUTHOR]

This study investigates the influence of green innovation and technology in both products and processes on the performance of small and medium‐sized enterprises (SMEs) in Thailand. Additionally, it explores the impact of firm size and sustainability readiness on SME performance and examines the moderating and mediating effects of these factors on the relationship between innovation and firm performance. Structural equation modeling (SEM) was employed as the methodological approach, utilizing a sample of 421 SMEs in Thailand. The findings reveal that green innovation and sustainability readiness significantly contribute to SME performance. Sustainability readiness is identified as a mediator, underscoring its significant role in mediating the relationship between green innovation and firm performance. Furthermore, firm size is confirmed as a moderator, indicating that the influence of green innovation on firm performance is contingent upon the firm's size. These findings have significant implications for SMEs, providing valuable insights into strategic investments in sustainability readiness and green innovation as avenues for enhancing performance and competitiveness. [ABSTRACT FROM AUTHOR]

The research constructs a theoretical framework including the relationship between the interaction of corporate environmental responsibility and technological base and firm performance and the mediating role of knowledge recombination. The research empirically studies the proposed framework by using the data of 258 firms listed on the Shanghai and Shenzhen Stock Exchanges from 2008 to 2019. The results show that the interaction between corporate environmental responsibility and technological base has a positive effect on firm performance and both the two dimensions of knowledge recombination that are knowledge recombination reuse and knowledge recombination creation could mediate this relationship. These results not only figure out the interaction between corporate environmental responsibility and technological base and its influencing mechanisms on firm performance, which is knowledge recombination and further broaden the application of the knowledge‐based view, but also provide important managerial implications for firms to acquire superior performance through corporate environmental responsibility and technological base. [ABSTRACT FROM AUTHOR]

We develop and test a multi‐stakeholder perspective of intrafamily CEO succession by exploring how family CEO successors affect post‐succession firm performance under conditions of sustainable human resource management (sustainable HRM) practices toward employees and top managers, as well as corporate philanthropic activities in the broader community. Using a sample of 414 CEO successions in family firms listed on China's stock exchanges during 2008–2016, we find an insurance‐like effect of both sustainable HRM and corporate philanthropy in enhancing firm performance of family CEO successors. Our results also show that firms with family CEO successors will outperform those with nonfamily counterparts under conditions of high employee compensation, low top management team (TMT) compensation, and long TMT tenure. Our findings suggest that sustainable HRM and corporate philanthropy complement rather than substitute in strengthening family leadership during CEO succession. [ABSTRACT FROM AUTHOR]

This paper examines how privacy regulation shaped firm performance. Controlling for firm and country‐industry‐year unobserved characteristics, we compare the outcomes of firms at different levels of exposure to EU markets, before and after the enforcement of the General Data Protection Regulation (GDPR) in 2018. We find that the GDPR had the unintended consequence of harming the profitability of companies targeting European consumers through the cost channel. Technology firms experienced a 2.1% decline in profits, but not in sales. The GDPR increased extra expenses, added to firms wage bills, and accelerated patenting in GDPR‐related technology fields. The main burdens have been borne by smaller companies. [ABSTRACT FROM AUTHOR]

This paper examines managers' explanations of firm performance (i.e., management attributions) in a large sample of the Management's Discussion and Analysis (MD&A) section of annual reports. We find that managers of poorly performing firms tend to attribute firm performance to external factors. We further propose a prediction model to decompose management external attributions into a credible part and a strategic part and find that both components are negatively related to firm performance. This evidence suggests that management external attributions partially reflect the actual impact of external conditions on firm performance and are not entirely subject to managerial opportunism. Additionally, we find that investors react more strongly to firm performance when managers provide credible external attributions, especially for firms without a bad reputation for strategic external attributions. We also show that executive compensation is less sensitive to firm performance when managers make more strategic external attributions. [ABSTRACT FROM AUTHOR]

China's manufacturing industry environmental regulations portray a strategic change towards sustainable development. The study examines how green business strategies and competencies enhance green innovation for manufacturing firm performance. The study approach included surveying senior managers from Chinese manufacturing firms. The hypotheses were tested running partial least squares structural equation modeling using 459 firms. The results reveal the complex relationships between these factors, showing how value co‐creation and absorptive ability generate innovation and business performance through green strategies and capabilities. Furthermore, green value co‐creation enhances a firm's green innovation and helps to achieve firm performance. This study contributes to the corpus of knowledge on sustainable manufacturing techniques and helps firms succeed in an environmentally conscious society. [ABSTRACT FROM AUTHOR]

This study investigates whether readability of the president's statement is linked to both company performance and factors related to corporate governance in an emerging market context. We analyse Jordanian manufacturing companies listed on the Amman Stock Exchange (ASE) during the period 2017–2021. An exploratory study using panel data from ASE, parametric correlations, and regression models shows the relationship between readability of the president's statement, corporate governance, and characteristics of the board of directors. The results indicate that corporate governance significantly moderates readability of the president's statement and the firm's performance. The results also show a relationship between readability of the chairman's statement and directors' accounting experience and confirm that independence of the board of directors and concentration of ownership affect readability of the accounting disclosures in the chairman's statement. Finally, poor board compliance significantly mitigates the association between board features and readability of the chairman's statement. These findings help to explain how and why firms adjust their information disclosure and transparency practices, affecting corporate reporting credibility and efficacy. This study is one of few to examine how board features affect readability of the president's statement within the Jordanian legal framework, which is plagued by poor board compliance due in part to constant amendments. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between Environmental, Social, and Governance (ESG) controversies and firm performance, examining the moderating influences of corporate governance structures and ESG practices. Utilizing quantitative methods, we analyze data from 5360 firm‐year observations. Our findings reveal a significant negative relation between ESG controversies and firm performance. However, well‐defined corporate governance frameworks and internal ESG strategies mitigate these adverse impacts and can transform these controversies into growth opportunities and reputation enhancement. A comparative analysis involving the United Kingdom and other European Union nations highlights the influence of geographical and regulatory contexts in shaping this dynamic. These results offer valuable insights for policymakers, corporate strategists, and investors, emphasizing the role of governance in navigating ESG controversies and enhancing firm resilience and adaptability. The study contributes to the sustainability field by providing a nuanced understanding of the interaction between ESG controversies, corporate governance, and firm performance. [ABSTRACT FROM AUTHOR]

Extant literature highlights the significance of the corporate governance (CG) mechanism in mitigating agency conflict. Literature also confirms the instrumentality of the board structure (measured as size, diversity, independence and CEO duality) in overcoming the agency problem. In this context, the present study examines the impact of board structure on a firm's cash holding (CH) levels. Likewise, the study tests the role of cash‐holding (CH) in the association between board structure and a firm's performance. Secondary data from 262 PSX‐listed manufacturing and servicing sector firms have been taken for analysis. Panel regression and Generalized Methods of Movement (GMM) were employed to test the modelled relationships. Results show that most of the CG variables, that is, CEO duality, board size, executive compensation, and diversity, do not affect a firm's CH levels in the service and manufacturing sectors. However, the results display a negative and significant impact of block holders (BH), measured as the ratio of the top five shareholders, on cash holding in manufacturing. Likewise, the sector‐wise analysis shows that cash holding significantly mediates between board size and ROA. In contrast, its role between other dimensions of CG and RoA was insignificant. The findings also revealed that firms with frailer CG structures tend to have less CH and can be prone to external environmental risk. [ABSTRACT FROM AUTHOR]

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We provide novel evidence on the value of combined CEO and board chair positions (CEO duality) for firms during the COVID‐19 pandemic in 2020. Based on 4,840 firm‐quarter observations from 1,210 unique firms in the US, we show that CEO duality firms outperformed non‐duality firms by a 0.58% margin in quarterly return on assets in 2020, which is equivalent to an incremental annual net profit of US$164 million. A difference‐in‐difference estimation confirms that the benefit of CEO duality is observed only in the COVID‐19 crisis period. Our main finding is robust to potential endogeneity concerns and alternative performance measures. Additional analyses show that the positive impact of CEO duality stems from the mechanisms of operating cost savings and working capital optimization during the crisis. Our finding underscores the benefit of CEO duality when economic uncertainty is high and a speedy decision is important. [ABSTRACT FROM AUTHOR]

Exchange Traded Funds (ETFs) have often tracked indices and charged low fees so their incentives to improve firm performance are questionable although little empirical work has investigated this issue. Theoretically, however, we expect firms to perform better when held by more engaged ETFs. We develop a new measure of engagement using a weighted‐average concentration measure which captures the combined effect of the concentration of the portfolios of the ETFs investing in a firm and the ownership of the firm by those ETFs. Using ETFs' investment in US‐listed firms for the period 2000–2019, we confirm our expectations that more engaged ETFs improve firm performance. [ABSTRACT FROM AUTHOR]

The purpose of this article is to provide a comprehensive and systematic assessment of the literature on the consequences of environmental, social, and governance (ESG) disclosure by means of content analyses. Using a systematic approach, a sample of 165 studies was collected from the Web of Science database and evaluated on the basis of econometric and content analyses, including publication trends, geographical distribution, theories and consequence associated with ESG disclosure (investment and innovation of firms, financing cost and method, operations and financial risk of firms, firm performance and value and others), provides some direction for future investigation. According to the analysis, the literature was more interested in the stakeholder theory when examining the effects of ESG disclosure on areas including company innovation and investment, financing costs and methods, financial risk and operations, business performance, and others. Even though most of the literature has focused on firm performance and value, there is still no clear understanding of the relationship. Also, limited work was found on the investment and innovation of firms, and financing cost and method, while the impact of operations and financial risk of firms has yet to be explored. Meanwhile, this study also identified the impact of ESG disclosure on analysts, audit fees, and earnings management as a new research direction. Finally, this study innovates new findings that institutional pressures may have an impact on the consequences of ESG disclosure, a topic not found in previous studies. [ABSTRACT FROM AUTHOR]

The paper explores the partial and integrated influence of corporate sustainability practices on the financial execution of Indian‐listed firms. The study considered a sample of 569 listed firms, and the study period spans from 2010 to 2022. Using estimates of feasible generalized least square and quintile regression, the study finds a positive association between the environmental, social, and governance (ESG) score and the financial performance of firms. All the individual dimensions of the ESG score positively affect the firm's internal and external values. Environmental practices have the highest impact on improving balance sheet values through return on asset (ROA). In contrast, social practices have the highest impact on creating market value through Tobin's Q (TQ) compared with other dimensions. However, for large firms, excess investment in ESG may not support their balance sheet through ROA but generates market value through TQ. ESG disclosers negatively impact the internal earnings of firms that are financially inflexible but, in the aggregate, support the firm's market value. In addition, the study finds a significant moderating effect of size, earnings, value, and financial flexibility on the association between ESG scores and the financial performance of the firms. [ABSTRACT FROM AUTHOR]

Determining the motivations behind adopting a circular economy (CE) and its effect on firm performance (FP) from the perspective of manufacturing firms has become essential for practitioners and scholars. Nonetheless, there exists a substantial unexplored gap regarding how customer citizenship behaviour (CCB) motivates and influences the adoption of CE practices and FP of manufacturing firms in the context of developing countries. Therefore, using insights from the social exchange theory, this study explores the framework through which CCB influences the relationship between CE practices and FP. The study employed a quantitative approach and partial least square structural equation modelling technique to analyse data and interpretations due to its appropriateness for predictive research models. Data was collected using a survey research strategy. The findings revealed that CCB mediates and moderates the relationship between CE practices and FP. The study highlights the significance of CCB in making CE initiatives mandatory for organisational growth while guiding managers, policymakers and scholars. [ABSTRACT FROM AUTHOR]

Environmental and climate concerns have made corporate environmental management a raging topic for discussion among academicians and industrialists. The current study explores the association between corporate environmental management and firm performance; and examines the influence of different performance measurement methods and sample characteristics on this association. The meta‐analysis, homogeneity test, and publication bias test have been performed on 318 effect sizes from 117 studies. The results indicate a significant positive association between the overall corporate environmental management and firm performance association. The findings suggest a significant influence of the nature of the data, corporate environmental management measures, corporate performance measures, region, economic development, time phase, nature of data, and period of study in the given context. The findings will help managers to better understand and choose the appropriate corporate environmental management measures to attain internal and external efficiencies. [ABSTRACT FROM AUTHOR]

This study examines the influence of foreign ownership and product market competition on firm performance in Vietnam's listed companies through the mediating role of the corporate governance index. Moreover, the study explores the moderating role of business strategy in the relationships between foreign ownership, product market competition, and firm performance. We use maximum likelihood structural equation modeling in Stata 14 software to analyze the data collected from 180 Vietnamese listed companies from 2015 to 2019. The results indicate that foreign ownership and product market competition positively influence firm performance by mediating the corporate governance index. Business strategy negatively moderates the relationship between product market competition and firm performance. This study has implications for managers focusing on foreign ownership and product market competition to improve corporate governance systems, enhancing firm performance. Additionally, managers may build business strategies when product market competition increases to avoid negative effects on firm performance. [ABSTRACT FROM AUTHOR]

We examine the effect of minority state ownership on firm performance using the Chinese stock market crash in 2015. We find that treatment firms with minority state ownership accumulated from governmental purchases of equities experience significant reductions in operating performance. The negative impact is more severe in firms with higher riskiness and firms with less powerful large shareholders. We also find that treatment firms' risk decreases and their employment increases after minority state shareholders step in, providing supportive evidence on the government's motives of reducing risk and preventing mass layoffs. Further tests reveal the channels through which minority state ownership impedes investment efficiency, productivity, and innovation. The negative impact diminishes when government institutions divest their shares in a timely manner. Overall, our results suggest there are unintended negative consequences of minority state ownership arising from the governmental rescue package in a market crisis. [ABSTRACT FROM AUTHOR]

The existing empirical evidence on the political directors' impact on company performance is mixed and inconclusive, suggesting that this relationship is more complex than initially hypothesised and requires further investigation. This study enhances our knowledge by exploring both political directors' direct effects and the role of moderating contextual variables. Precisely, building on resource dependence and contingency theory, we argue that political directors can positively affect company performance and that this relationship may be moderated by industry regulation and national financial systems. We tested our hypotheses using a longitudinal sample of large European listed companies. Our results highlight that political directors have a detrimental effect on firm performance, while industry regulation and credit‐based financial systems positively moderate this baseline relationship. As such, our findings expand the use of resource dependence theory and provide a more contextual understanding of the impact of political directors on firm performance. [ABSTRACT FROM AUTHOR]

This paper aims to document the effect of economic policy uncertainty on the value of advertising expenditures within the context of an emerging market. The paper shows that the value of advertising expenditures is an increasing function of economic policy uncertainty. The impact of advertising on firm performance is more pronounced during the periods characterized by higher economic policy uncertainty. We argue that, during uncertain times, the financial information loses its relevance. Therefore, during these periods, non‐financial traits, such as brand image, customer equity, relationship capital, and familiarity that characterizes firms with high advertising become more important. The findings hold in various sub‐samples and across various proxies of advertising activity. The findings also hold under alternate estimation procedures (pooled OLS regression, panel data with fixed effects and instrument variable regression). More importantly, this paper also shows that, relative to other agency reducing mechanisms (such as analyst coverage, asset utilization ratio, expense ratio and dividend payments), advertising is more valuable during periods with high economic policy uncertainty. [ABSTRACT FROM AUTHOR]

This study investigates whether higher percentages of female directors contribute to firm performance after merger and acquisition activity (M&A). Resource dependence and human capital theories are used to develop the hypothesis that gender‐diverse boards are of particular benefit in an M&A setting that requires complex decision‐making and close monitoring. Using a sample of 56 Singaporean acquirers and 126 Australian acquirers with single M&A events to avoid confounding and a timeframe of 5 years before and after a single M&A between 2005 and 2012, the percentage of female directors is associated with better firm performance in the years after the M&A. Our results remain robust to alternative proxies for female directors. Using data from two countries with comparable mature capital markets and jurisdictional conditions, the results provide evidence to contribute to the debate on gender targets for boards. [ABSTRACT FROM AUTHOR]

Research Question/Issue: Using insights from an in‐depth qualitative interview study, we propose an input‐process‐output model where the link between women directors (input) and corporate financial performance (output) is mediated by board attendance and where board attendance serves as a proxy of several intermediate but latent board processes. Further, we dig deeper into the nonlinearities of female boardroom representation by analyzing in how far the postulated mediation depends on the number of women in the boardroom. Research Findings/Insights: Analyzing quantitative data from German supervisory boards over an 11‐year period, we find the link between women directors and corporate financial performance to be partially mediated by board attendance, and we find the mediation to depend on whether there is more than just one "token" woman in the boardroom. When there is only one woman in the boardroom, her presence is positively linked to board attendance, but the higher board attendance does not to translate into a better corporate financial performance. Theoretical/Academic Implications: Our study contributes to theory, by inductively enriching our understanding of how and when women directors and corporate financial performance are linked. Practitioner/Policy Implications: Our study encourages firms to appoint more than one woman to the boardroom to profit from an enhanced board attendance that will then also translate into a better corporate financial performance. [ABSTRACT FROM AUTHOR]

We examine the spillover effect of foreign direct investment (FDI) on domestic firms in Vietnam. We use distance between each district center and the 17th parallel north latitude as an instrumental variable for FDI firm density at the district level. The rationale for this instrument is that districts which are closer to the 17th parallel north latitude, are more likely to suffer from unexploded ordnance (UXO) from the Indochina wars and therefore attract fewer FDI firms. We find that 1% increase in FDI firm density leads to 0.2% increase in revenue and profit per employee of domestic firms. The main mechanism for this positive effect does not take place through technology spillovers but through backward linkages where domestic firms in districts with a higher FDI firm density have more FDI customers. Our study also shows the long‐term effect of war on the efficacy of domestic firms. In particular, 1% increase in the proportion of UXO‐contaminated areas reduces revenue and profit per employee of domestic firms by 0.28% and 0.29%, respectively. [ABSTRACT FROM AUTHOR]

Embedded in the legitimacy and stakeholder theories in the context of corporate social responsibility (CSR), this study investigates the impact of COVID‐19 on firm performance, and the cushioning effect of CSR on the relationship between COVID‐19 pandemic and firm performance. The sample covers non‐financial firms listed on the Johannesburg Stock Exchange (JSE), South Africa. Data covering the period 2018–2021 were analyzed using multivariate linear fixed‐effect regression techniques. COVID‐19 has had a negative impact on firm performance, proxied by Tobin's Q and Sales Turnover, while CSR has a positive impact on firm performance. We also found that the negative impact of COVID‐19 on firm performance differs between high and low CSR performing firms. Additionally, based on an industry‐level analysis, we provide insight into the most affected and most resilient sectors. The findings should motivate more firms to take CSR issues more seriously and adopt such practices as part of their long‐term strategic tools to gain competitive advantage and enhance profitability in the long run. [ABSTRACT FROM AUTHOR]

This paper contributes to the existing CSR decoupling literature by examining whether the COVID‐19 pandemic increased the likelihood of firms adopting a corporate social responsibility (CSR) decoupling strategy and by assessing the impact of a symbolic CSR strategy on abnormal returns. The study analyzes a sample of 75 socially responsible French‐listed firms. The findings indicate that symbolic CSR reporting strategies were more likely to be implemented in response to the COVID‐19 crisis. Furthermore, while the market initially rewarded greenwashing practices during the COVID‐19 crisis in the short term, it subsequently penalized such practices over the long term. Additionally, abnormal returns of firms operating in the most severely affected industries surpassed those of firms in the least affected industries. Finally, the results highlight that firms adopting a defensive CSR strategy during the health crisis experienced more significant abnormal returns compared to other firms. [ABSTRACT FROM AUTHOR]

The need for organizations to safeguard and advance environmental sustainability has recently become imperative due to mounting pressures from various stakeholder groups. However, a significant research gap remains regarding how these pressures influence enterprises' green practices and performance. The aim of this study is to examine the impact of green market pressure exerted by customers and competitors on firm performance, taking into account the multiple mediating effects of green value co‐creation and green dynamic capability. Questionnaire survey data collected from 274 high‐tech manufacturing companies in the Yangtze River Delta of China were used to test the proposed relationships. By testing the mediation effects based on stakeholder theory and dynamic capability view, the results show that green market pressure positively affects firm performance, while both green value co‐creation and green dynamic capability play as an individual mediator between green market pressure and firm performance. Moreover, green value co‐creation and green dynamic capability sequentially mediate the link between green market pressure and firm performance. These findings provide valuable suggestions for improving firm performance under the background of environmental protection. [ABSTRACT FROM AUTHOR]

This study examines if unsuccessful takeovers trigger the replacement of directors and changes in other governance attributes and result in improvements in target firm performance. Using an Australian sample this study finds that following failed bids, target firms are more likely to remove directors and experience an increase in director ownership, board independence, and block ownership. In contrast, target firm director expertise and prestige decrease following failed bids. We also find that post‐bid accounting and stock performance of targets are largely unrelated to changes in governance attributes after the unsuccessful takeover. [ABSTRACT FROM AUTHOR]

In this study, we investigate the impact of academic directors on a firm's performance and decisions in the Taiwan equity market. We find that firms with more independent directors and board size are more likely to appoint academic directors, and academic directors can improve firm performance. The presence of academic directors positively affects firm performance through channels like more capital expenditure and larger R&D expenses. Academic directors with finance and technology backgrounds positively correlate with both Tobin's Q and ROA. Moreover, the appropriate match of expertise between firms and their academic directors contributes to a better performance. However, corporations with academic directors have a higher compensation gap between top managers and employees. [ABSTRACT FROM AUTHOR]

The topic of green human resource management (HRM) has drawn increasing attention of HRM scholars in the past decade. Recent research has called for more studies to identify the antecedents of green HRM used in organizations and explore the mediating mechanisms through which green HRM is related to performance outcomes. This study represents an effort to address these research needs by examining the joint effects of chief executive officer (CEO) environmental belief and external pollution severity on the use of green HRM and testing the mediating role of employee environmental commitment in the relationship between green HRM and firm performance. Drawing upon data collected from multiple sources (i.e., survey data from chief executive officer (CEOs), chief financial officers (CFOs), HR managers and employees, and archival data from government statistics), we found that CEO's environmental belief is significantly related to the use of green HRM, especially for companies operating in locations with severer pollution. Green HRM in turn has a positive relationship with the firm's environmental and financial performances via employee commitment to the environment. The findings highlight the often‐overlooked role of in the strategic HRM literature pertinent to environmental management and clarify the antecedents and influential mechanisms of green HRM at the firm level of analysis. We also discuss theoretical and practical implications in this study. [ABSTRACT FROM AUTHOR]

Eco‐innovation strategies are essential elements for companies developing core competencies in the circular economy model. The academic world has begun to study the knowledge of these business decisions, and there is incipient literature on the subject. In this context, this paper aims to contribute to the current knowledge on the impact of eco‐innovation strategies on corporate performance by exposing and synthesizing the distinct positions found in the literature. For this purpose, a systematic and bibliometric review of 81 articles related to the economic impact of eco‐innovation on firm performance, as well as the barriers and drivers of these strategies, was carried out. After analyzing the several types of eco‐innovation, our results show that although previous empirical evidence suggests the existence of a positive effect, it is not generalizable due to the existence of several factors that may condition the impact of eco‐innovation on corporate performance and its implementation. This study delves into the current academic literature on eco‐innovation and firm performance, determining that both size and the environment in which a company is framed constitute a series of conditioning factors that may clarify why there is no consensus in the academic literature in this regard. In addition, this work encourages future lines of research with the aim of shedding light on this field of knowledge. [ABSTRACT FROM AUTHOR]

This study analyzes the impact of sustainable development leadership on firm performance. The context of the empirical analysis is the European region between 2010 and 2018. Sustainable development leaders are defined as the firms included in the Dow Jones Sustainability Index for Europe. To control for endogeneity problems caused by self‐selection bias in the sample, the research design relies on Heckman two‐stage model. The results show that stock market participants do not perceive sustainability leadership as an asset that adds value to the firm. Our findings also suggest that corporate governance shapes the relationship between sustainable development leadership and performance as common‐law countries have a more positive perception sustainable development leadership than civil‐law countries. Additionally, the study reveals a decline in stock market sentiment toward sustainability leadership over the research period, indicating a potential loss of competitive advantage for sustainable development leaders as sustainability initiatives become more widespread. [ABSTRACT FROM AUTHOR]

We examine the impact of board cultural diversity, based on directors' ancestry, on firm performance conditional on product market competition. We argue that culturally diverse boards foster critical thinking and offer creative solutions that help firms thrive in competitive environments. We document that culturally diverse boards are associated with superior performance for firms operating in highly competitive industries. To address potential endogeneity issues, we use a quasi‐natural experiment of the U.S. import tariff cuts. The positive impact of board cultural diversity on firm performance in competitive markets manifests itself in firms that innovate more, require creative inputs, and face heightened predation risk due to their high interdependence with industry rivals, in line with culturally diverse boards effectively performing their advisory role. Lastly, we find no evidence that board cultural diversity is associated with enhanced monitoring as its benefits fade in the presence of powerful CEOs. [ABSTRACT FROM AUTHOR]

Although the enablers of green image have been studied extensively, most prior studies have focused on the net effects of individual factors. In addition, the existing literature overlooks how green image is shaped by different paths and the impact of these paths on different performance. From the configurational perspective, we identify how the configurations of green human resource management (GHRM) depend on perceived institutional pressure to shape a favorable green image. Using data from 317 Chinese manufacturers, we conduct fuzzy set qualitative comparative analysis and propensity score matching analysis to explore the configurations that achieve a favorable or unfavorable green image and whether a favorable green image formed by different configurations improves firm performance. The results reveal five equifinal paths of GHRM that depend on perceived institutional pressure and can enhance green image and three that can shape an unfavorable green image. We also find that favorable green images shaped by distinct configurations have different effects on firm performance. This research enriches the literature on green image and provides novel insights for enhancing green image and subsequent firm performance. [ABSTRACT FROM AUTHOR]

Research question: Share pledging by controlling shareholders can be motivated by business or personal purposes. We investigate whether the firm performance and innovation outputs are different for firms with controlling shareholders pledging shares to support their firm's financing (business‐pledging firms) and those pledging shares for increasing personal wealth (individual‐pledging firms). Research findings: Using data from publicly listed Chinese firms, we find that business‐pledging firms are associated with higher changes in Tobin's Q and more patent outputs compared with individual‐pledging firms. In additional tests, we show that the impact of share‐pledging purposes on firm performance and innovative outputs is more pronounced for Chinese non‐state‐owned enterprises, which have relatively limited access to traditional bank loans. Theoretical implications: In this study, we bring new empirical evidence to agency theory, especially the "principal–principal" problem. We identify two inherently different purposes in share‐pledging cases—business pledging and individual pledging. We show that in business‐pledging cases, pledgers' interests become more aligned with outside shareholders, and pledgers have higher incentives to enhance firm value and innovation productivity, relative to individual pledging. This paper adds to the evidence on the bright side of share pledges. Practitioner implications: This paper sheds light on the recent policy debate regarding the costs and benefits of share pledging and has implications for regulators and investors. Thus, it may be vital for publicly listed firms to disclose the purposes of share pledging. [ABSTRACT FROM AUTHOR]

The business practices such as supply chains have been transformed significantly due to technological advancement and digitalization. It helps enhance organizational efficiency in consumption, production, and overall operation. Additionally, big data within the supply chain management process has considerably assisted businesses in gathering accurate product information, easily tracing a product, maintaining track of distribution cycles and delivering goods as quickly as possible. The research investigates the impact of the circular supply chain (CSC) and big data implementation on firm performance, specifically in the Pakistan Manufacturing Sector. Further, it has investigated digital technologies' mediating role in the firm's performance in the Pakistan manufacturing sector. The research was conducted using quantitative data from the questionnaire survey from 400 participants (i.e., firm managers) working in the Pakistan manufacturing sector. The data were analyzed using the structural equation modeling comprising confirmatory factor analysis and path analysis using SmartPLS. Findings show a negative and significant influence of CSC practices on firm performance in the manufacturing sector of Pakistan. On the contrary, big data implementation positively and significantly impacts the firms' performance. Further, the mediating role of digital technology over firm performance through CSC practices and big data implementation was also found to be positive and significant. The research has contributed to the present state of literature in different ways. First, the research presented the mediating role of digital technologies in the relationship between CSC and big data implementation and firm performance. [ABSTRACT FROM AUTHOR]

Using Glassdoor data we show that women are less satisfied at work than men and that female employees care more about work‐life balance. Further analysis shows that this gender difference in workplace preference vanishes at the manager level, suggesting that women who care less about work‐life balance self‐select into career paths that ultimately lead to management positions. Exploring the performance implications, we show that family‐friendly workplaces with smaller gender gaps in work‐life balance satisfaction are associated with better firm performance. Overall, our study implies that policies that aim to narrow the gender satisfaction gap can be socially and economically desirable. [ABSTRACT FROM AUTHOR]

We verify the effect of ESG disclosures on firm performance using NSE 500 index listed companies spanning from 2010 to 2020. The study employs a method‐of‐moments quantile regression approach to test whether ESG disclosures lead to superior firm performance. We find evidence that environmental, social, and governance disclosures positively influence firm performance. Higher quantiles of ESG disclosures are associated with better market performance (Tobin's Q), and the same lead to lower profitability (ROA). The present study suggests that companies aspiring to improve their financial performance may pay more attention to ESG disclosure practices. [ABSTRACT FROM AUTHOR]

This study analyzes how corporate governance affects financial performance and explores the role of corporate social responsibility as a mediator for 495 firms located in emerging economies in BRICS countries, including Brazil, Russia, India, China, and South Africa from 2011 to 2021. This study evaluates the impact of various board characteristics such as board size, board independence, and gender diversity, as well as ownership structure elements such as family, foreign, and institutional shareholding, on firm performance in BRICS countries. This study uses a generalized method of moments (GMM) methodology to examine the relationship between corporate governance, corporate social responsibility (CSR), and firm performance. The results reveal that board attributes including size, independence, and gender diversity positively influence firm performance. All three components of ownership structure, family, foreign, and institutional shareholdings, positively affect firm performance. CSR partially mediates the positive relationship between corporate governance and firm performance. This study contributes to the literature by adding CSR as a mediating variable in the relationship between corporate governance and firm performance in BRICS countries. These findings suggest that managers must understand that effective corporate governance mechanisms are essential for better performance and should align their interests with firms' objectives. The mediation effect of CSR implies that policymakers should consider CSR as an additive tool to enhance firm performance rather than as an additional expenditure. [ABSTRACT FROM AUTHOR]

This paper proposes a systemic model on the intertwined relations among managerialization, professionalization and firm economic performance, considering both business‐ and family‐specific features and issues. It sheds light on the role that, in the family business, the firm economic performance may play in favouring a positive development of both the business and the family itself. It aims at understanding how, in family businesses, the firm managerialization and professionalization may represent relevant drivers of firm performance. A Systems Thinking model based on causal loop diagrams was developed, to provide a clear framing of the interrelationships among the various aspects at stake. The conceptual model combines with systemic perspective all the variables and relationships that come into play when considering jointly the growth and development of the company and the family. This paper provides not only a conceptual background but also practical insights for family business' owners, managers and consultants. [ABSTRACT FROM AUTHOR]