Work

Managerial Entrenchment and Corporate Social Performance

Year: 2008

Type: article

Abstract: : 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.

Source: Journal of Business Finance &amp Accounting

DOI: 10.1111/j.1468-5957.2008.02090.x

Authors: Jordi Surroca, Josep A. Tribó

Institution: Universidad Carlos III de Madrid

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

Funder: Comunidad de Madrid