Franchise systems and lobbying: implications for Olsonian collective action theory

2018 ◽  
Vol 56 (11) ◽  
pp. 2357-2372
Author(s):  
Richard S. Brown
Keyword(s):  
Collective Action ◽  
Action Theory ◽  
Negative Relationship ◽  
System Size ◽  
Industry Structure ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Data Set ◽  
Content Type ◽  
Political Activities

Purpose Previous research combining corporate political activity and collective action theory has focused solely on industry structure and its role in predicting group lobbying or PAC participation. The purpose of this paper is to use a different context—franchise systems—to apply Olsonian collective action theory to political activities. Design/methodology/approach Using a random-effects technique in STATA on an unbalanced panel data set, this paper empirically models the effects of franchise system size and degree of franchising on the level of lobbying intensity. Findings Since franchise systems are made up of differing unit ownership structure, the author first model if those systems that are fully franchised lobby less than those with franchisor unit ownership (supported). Next, since collective action theory predicts that more participants in a space will lead to less collective action, the author predict that franchise systems with larger unit counts will lobby less than those with smaller counts (not supported). Finally, the author test the interaction of these two effects as systems that are fully franchised and of higher unit totals should have an even greater negative relationship with political activity (supported). Originality/value This paper uses both a novel data set and a novel context to study collective action. Previous research has utilized an industry structure context to model the level of lobbying and collective action, while the current research uses an analogous logic, but in the context of franchise systems.

scholarly journals How do perceived CPA and political CSR interact in their relationships with citizens’ trust in companies?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vicent Tortosa-Edo ◽  
Miguel Ángel López-Navarro
Keyword(s):  
Structural Equation ◽  
Negative Relationship ◽  
Political Activity ◽  
Industrial Complex ◽  
Corporate Political Activity ◽  
Content Type ◽  
Political Csr ◽  
Political Corporate Social Responsibility ◽  
Corporate Social ◽  
Market Strategies

Purpose In the context of an industrial complex where corporate political activity (CPA) and political corporate social responsibility (political CSR) are not related, this study aims to investigate the possible relationship between citizens’ perceptions of these two non-market strategies and residents’ trust in companies located in the industrial complex. Design/methodology/approach Data were collected from 740 citizens living near a petrochemical complex in Tarragona (Spain). The results were analysed using structural equation modelling. Findings Based on institutional theory, the key findings of the study are that CPA and political CSR are differently related to citizens’ trust in companies. The results also verify that the negative relationship (between CPA and trust) outweighs the positive one (between political CSR and trust). Practical implications The lack of fit between political CSR and CPA in the complex analysed suggests that firms are neglecting approaches shared by these non-market strategies, and thus wasting a huge opportunity to improve citizens’ trust in and acceptance of the complex firms. Moreover, the ethical dimension should always be present when these firms take on political responsibilities. Originality/value To date, CPA and political CSR have largely been dealt with separately in the literature. This study attempted to bridge this gap by examining a situation where there is no strategic relationship between CPA and political CSR to analyse, from the perspective of citizens’ perceptions, the relationship each strategy has with the important academic concept of citizens’ trust in companies.

Does board gender diversity affect the transparency of corporate political disclosure?

2018 ◽  
Vol 26 (4) ◽  
pp. 444-463 ◽  
Author(s):  
D.G. DeBoskey ◽  
Yan Luo ◽  
Jeff Wang
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Gender Diversity ◽  
Political Activity ◽  
Political Contributions ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Ethics Research ◽  
Board Gender Diversity

Purpose The purpose of this paper is to examine the influence of board gender diversity on the transparency of corporate political disclosure (CPD). Design/methodology/approach Two empirical proxies, CPD transparency and policy transparency, are constructed from a data set jointly produced by the Center of Political Activity and the Carol and Lawrence Zicklin Center for Business Ethics Research. The CPD transparency score measures the level of transparency in voluntary corporate disclosure of the amount of political contributions and the identity of the recipients as well as the titles and names of the executives who authorize the political spending. The policy transparency score measures the level of transparency in the voluntary disclosure of the policies governing corporate political spending. Board gender diversity is measured by the percentage of women on the board of directors. Findings Higher proportions of female directors are associated with more transparent disclosure of political contributions after controlling for a set of corporate governance and firm-level variables. Originality/value This study is the first to examine whether and how gender-diversified boards enhance the transparency of CPD. It contributes to the literature by providing evidence that gender-diversified boards enhance corporate governance.

scholarly journals Crime and social media

2019 ◽  
Vol 32 (5) ◽  
pp. 1215-1233 ◽  
Author(s):  
Simplice Asongu ◽  
Jacinta Nwachukwu ◽  
Stella-Maris Orim ◽  
Chris Pyke
Keyword(s):  
Social Media ◽  
Negative Relationship ◽  
Sub Saharan Africa ◽  
Quantile Regressions ◽  
Data Set ◽  
Middle Income ◽  
Content Type ◽  
Income Levels ◽  
Sub Saharan ◽  
Development Outcomes

PurposeThe purpose of this paper is to complement the scant macroeconomic literature on the development outcomes of social media by examining the relationship between Facebook penetration and violent crime levels in a cross-section of 148 countries for the year 2012.Design/methodology/approachThe empirical evidence is based on ordinary least squares (OLS), Tobit and quantile regressions. In order to respond to policy concerns on the limited evidence on the consequences of social media in developing countries, the data set is disaggregated into regions and income levels. The decomposition by income levels included: low income, lower middle income, upper middle income and high income. The corresponding regions include: Europe and Central Asia, East Asia and the Pacific, Middle East and North Africa (MENA), Sub-Saharan Africa and Latin America.FindingsFrom OLS and Tobit regressions, there is a negative relationship between Facebook penetration and crime. However, quantile regressions reveal that the established negative relationship is noticeable exclusively in the 90th crime quantile. Further, when the data set is decomposed into regions and income levels, the negative relationship is evident in the MENA while a positive relationship is confirmed for Sub-Saharan Africa. Policy implications are discussed.Originality/valueStudies on the development outcomes of social media are sparse because of a lack of reliable macroeconomic data on social media. This study primarily complemented three existing studies that have leveraged on a newly available data set on Facebook.

The impacts of acquisition modes on achieving customer behavioral loyalty: an empirical analysis of the credit card industry from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaxin Ming ◽  
Jing (Elaine) Chen ◽  
Chenxi Li
Keyword(s):  
Credit Card ◽  
Service Industry ◽  
Negative Relationship ◽  
Marketing Practice ◽  
Data Set ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Joint Influence ◽  
The Gift ◽  
Negative Effect

PurposeThis study aims to investigate the effect of acquisition modes on customer behavioral loyalty to enrich our knowledge of the effectiveness of acquisition modes and how to better target customers in the service industry.Design/methodology/approachUsing a data set from a large commercial bank in China, this study conducts a series of empirical analyses to examine the impacts of two types of acquisition modes (i.e. the gift acquisition mode and customer referral) on customer behavioral loyalty.FindingsGift acquisition has a negative effect on customer behavioral loyalty, as measured by the dropout probability, consumption amount and consumption frequency. Furthermore, this negative relationship could be weakened if the customer is referred by an existing customer.Originality/valueAlthough prior studies have investigated the effectiveness of some acquisition modes in terms of customer loyalty, customer acquisition through the provision of gifts, which is widely implemented in marketing practice, has not been well investigated. This study addresses this research gap and identifies the joint influence of acquisition modes on customer behavioral loyalty, further enriching our knowledge of the effectiveness of different acquisition modes.

Disaggregating and Explaining Corporate Political Activity: Domestic and Foreign Corporations in National Politics

2000 ◽  
Vol 94 (4) ◽  
pp. 891-903 ◽  
Author(s):  
Wendy L. Hansen ◽  
Neil J. Mitchell
Keyword(s):  
Charitable Giving ◽  
Strategic Behavior ◽  
Political Action ◽  
Political Activity ◽  
Political Action Committees ◽  
National Politics ◽  
Corporate Political Activity ◽  
Political Activities ◽  
Empirical Level ◽  
Foreign Corporations

Corporate political activity is usually operationalized and analyzed as financial contributions to candidates or political parties through political action committees (PACs). Very little attention has been paid to other dimensions, such as lobbying, in a systematic way. On a theoretical level we address the issue of how to conceive of PAC contributions, lobbying, and other corporate activities, such as charitable giving, in terms of the strategic behavior of corporations and the implications of “foreignness” for the different types of corporate political activity. On an empirical level we examine the political activities of Fortune 500 firms, along with an oversampling of U.S. affiliates of large foreign investors for the 1987–88 election cycle.

The effects of board experience and independence on mitigating agency conflict

2017 ◽  
Vol 7 (4) ◽  
pp. 445-467
Author(s):  
Ebenezer Agyemang Badu ◽  
Kingsley Opoku Appiah
Keyword(s):  
Resource Dependence ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Board Independence ◽  
Corporate Board ◽  
Data Set ◽  
Content Type ◽  
Agency Conflict ◽  
Human And Social Capital ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of board experience and independence on mitigating agency conflict between shareholders and managers. Design/methodology/approach This paper uses a panel data of 137 firms listed on stock exchanges in Ghana and Nigeria over a period of seven years. System generalized method of moments and other estimation techniques were adopted for the study. Using agency and resource dependence theories, board experience and independence ignored in previous studies are selected for the study. Findings The findings of this paper indicate a negative and statistically significant relationship between board experience, board independence, and agency conflict. A further examination using an agency score computed from the principal factor analysis of the four main agency proxies indicates a significant and negative relationship between board independence and agency conflict, but a negative and statistically non-significant relation between board experience and agency conflict. Practical implications The authors’ evidence has important implications for countries that are currently or contemplating pursuing board reforms to recommend the appointment of more independent and experience directors to corporate board. Originality/value This paper introduces a new proxy for assessing human and social capital of directors to test the integration hypothesis of a unique data set from Ghana and Nigeria toward mitigating agency conflict.

The implications of the revised code of corporate governance on firm performance

2015 ◽  
Vol 5 (3) ◽  
pp. 350-380 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Sanni Mubaraq
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Market Performance ◽  
Negative Relationship ◽  
Future Research ◽  
Data Sets ◽  
Data Set ◽  
Content Type ◽  
The One

Purpose – The purpose of this paper is to examine the impact of corporate governance and ownership structure attributes on firm performance following the revised code on corporate governance in Malaysia. The study presents a longitudinal assessment of the compliance and implications of the revised code on firm performance. Design/methodology/approach – Two data sets consisting of before (2006) and after (2008-2010) the revised code are examined. Drawing from the largest companies listed on Bursa Malaysia (BM), the first data set contains 92 observations in the year 2006 while the second data set comprises of 282 observations drawn from the largest companies listed on BM over a three-year period, from 2008-2010. Both accounting (return on assets and return on equity) and market performance (Tobin’s Q) measures were used to measure firm performance. Multiple and panel data regression analyses were adopted to analyze the data. Findings – The study shows that there were still cases of non-compliance to the basic requirements of the code such as the one-third independent non-executive director (INDs) requirement even after the revised code. While the regression models indicate marginal significance of board size and independent directors before the revised code, the results indicate all corporate governance variables have a significant negative relationship with at least one of the measures of corporate performance. Independent chairperson, however, showed a consistent positive impact on firm performance both before and after the revised code. In addition, ownership structure elements were found to have a negative relationship with either accounting or market performance measures, with institutional ownership showing a consistent negative impact on firm performance. Firm size and leverage, as control variables, were significant in determining corporate performance. Research limitations/implications – One limitation is the use of separate measures of corporate governance attributes, as opposed to a corporate governance index (CGI). As a result, the study constructs a CGI based on the recommendations of the revised code and proposes for future research use. Practical implications – Some of the largest companies did not even comply with basic requirements such as the “one-third INDs” mandatory requirement. Hence, the regulators may want to reinforce the requirements of the code and also detail examples of good governance practices. The results, which show a consistent positive relationship between the presence of an independent chairperson and firm performance in both data sets, suggest listed companies to consider appointing an independent chairperson in the corporate leadership. The regulatory authorities may also wish to note this phenomenon when drafting any future corporate governance codes. Originality/value – This study offers new insights of the implications of regulatory changes on the relationship between corporate governance attributes and firm performance from the perspective of a developing country. The development of a CGI for future research is a novel approach of this study.

scholarly journals Industry vs. Government: Leveraging Media Coverage in Corporate Political Activity

2020 ◽  
pp. 017084062096416
Author(s):  
John Murray ◽  
Daniel Nyberg
Keyword(s):  
Mass Media ◽  
Media Coverage ◽  
Mining Industry ◽  
Political Influence ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Political Activities ◽  
Media Frames ◽  
The Media ◽  
The Public Sphere

This article investigates how an industry leveraged media coverage to publicly oppose governmental policy. Based on a frame analysis of the political contest between the mining industry and the Australian government over a proposed tax on resource corporations, we show how the industry aligned its position with mass media to (a) make the policy contest salient, (b) frame their position in the contest as legitimate and (c) construct negative representations of the policy as dominant. The analysis reveals how the industry’s corporate political activities leveraged media coverage to align disparate frames into a consistent message against the policy in the public sphere. This contributes to the literature on corporate political activity by explaining the process of alignment with mass media frames to legitimize corporate positions on salient issues. Second, we contribute to the framing literature by demonstrating the process of frame alignment between non-collaborative actors. Finally, we contribute to the broader discussion on corporations’ role in society by showing how corporate campaigns can leverage the media to facilitate the favourable settlement of contentious issues. These contributions highlight the pitfalls of corporate political influence without necessary democratic standards.

Everyone must help: performance implications of CEO and top management team human capital and corporate political activity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christopher M. Harris ◽  
Lee Warren Brown
Keyword(s):  
Human Capital ◽  
National Collegiate Athletic Association ◽  
Top Management Team ◽  
Chief Executive ◽  
Management Team ◽  
Political Activity ◽  
Top Management ◽  
Corporate Political Activity ◽  
Content Type ◽  
Outcome Differences

PurposeWhile research has shown that multiple actors, both internal and external to the organization, influence performance, oftentimes, these actors are studied in isolation. This paper aims to examine the performance implications of both top management team (TMT) and chief executive officer (CEO) human capital. In addition, the authors consider external actors' influence on performance by examining corporate political activity (CPA).Design/methodology/approachThe authors use a sample of National Collegiate Athletic Association (NCAA) football teams, examining human capital data on the head coaches and the assistant coaches, combined with the schools' participation in NCAA football committees.FindingsThe study findings indicate that organizations engage in various market and nonmarket strategies in concert, and that different strategies result in performance outcome differences. Specifically, we examine how the use of CEO and TMT human capital and CPA interact and influence performance.Practical implicationsThe authors examine the moderating effects of political activity on the human capital–performance relationship for both top leaders and TMTs. Organizations benefit from investing in the human capital of their leaders internally and CPA externally.Originality/valueWhile organizations engage in market and nonmarket actions in concert, management research has generally studied these concepts in isolation. This paper suggests that both market and nonmarket activities can influence performance.

Social responsibility or smoke screening: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nemiraja Jadiyappa ◽  
Bhavik Parikh ◽  
Namrata Saikia ◽  
Adam Usman
Keyword(s):  
Energy Consumption ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Firm Value ◽  
Emerging Market ◽  
Negative Relationship ◽  
Public Image ◽  
Legitimacy Theory ◽  
Data Set ◽  
Content Type

Purpose The purpose of this study is to examine whether the choice of a firm to spend resources on corporate social responsibility (CSR) activities is associated with its actual social impacts as measured by its energy consumption and the quality of its financial reporting. Based on legitimacy theory, the authors argue firms in India use CSR expenditures as mere smoke screens to build a positive public image. Design/methodology/approach By using energy consumption per unit of sale as a measure of real environmental impact, the authors model firms' CSR investment behavior. Additionally, the authors use earnings management measures to examine whether CSR spenders engage in manipulating reported earnings, a practice socially responsible firms would not engage in. These hypotheses are tested using a panel data set of Indian firms for the period 2012–2014. Findings Consistent with legitimacy theory, the authors show firms that participate in socially undesirable activities such as heavy energy consumption and accounting manipulation are more likely to pursue CSR voluntarily. Additionally, the authors find evidence suggesting firms that voluntarily engage in CSR tend to have lower firm values. Originality/value This study examines the social and environmental concerns of firms that invest in CSR, especially in an emerging market context. The findings help understand the motivation for CSR behavior of corporate firms and may well explain the observed negative relationship between firm value and voluntary CSR spending observed in many emerging market contexts, especially in India.

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