TY - JOUR
T1 - Managerial entrenchment and corporate social performance
AU - Surroca, Jordi
AU - Tribó, Josep A.
PY - 2008/6
Y1 - 2008/6
N2 - 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.
AB - 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.
KW - Corporate governance
KW - Corporate social performance
KW - Earnings management
KW - Stakeholder activism
UR - http://www.scopus.com/inward/record.url?scp=45349086293&partnerID=8YFLogxK
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U2 - 10.1111/j.1468-5957.2008.02090.x
DO - 10.1111/j.1468-5957.2008.02090.x
M3 - Article
AN - SCOPUS:45349086293
SN - 0306-686X
VL - 35
SP - 748
EP - 789
JO - Journal of Business Finance and Accounting
JF - Journal of Business Finance and Accounting
IS - 5-6
ER -