Missing the Target: Normative Stakeholder Theory and the Corporate Governance Debate

2001 ◽  
Vol 11 (1) ◽  
pp. 159-176 ◽  
Author(s):  
John Hendry
Keyword(s):  
Corporate Governance ◽  
Stakeholder Theory ◽  
Significant Influence ◽  
Shareholder Theory ◽  
Academic Management ◽  
Different Levels ◽  
Management Thinking

Abstract:After a decade of intensive debate, stakeholder ideas have come to exert a significant influence on academic management thinking, but normative stakeholder theory itself appears to be in considerable disarray. This paper attempts to untangle the confusion and to prepare the ground for a more productive approach to the normative stakeholder problem. The paper identifies three distinct kinds of normative stakeholder theory and three different levels of claim that can be made by such theories, and uses this classification to argue that stakeholder theorists have consistently pitched their sights either too high or too low to engage effectively with the rival shareholder theory. To the extent that they have their sights too high they have also undermined their own position by sacrificing credibility and introducing major problems of derivation.

The Effect of Profitability, Asset Structure, Company Size on Stock Returns with Corporate Governance as Moderating Variables in Manufacturing Companies on the IDX in 2009-2018

2021 ◽  
Vol 8 (8) ◽  
pp. 55-63
Author(s):  
Deby Yurika Lasmarito Siahaan ◽  
Rina Br Bukit ◽  
Tarmizi .
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Firm Size ◽  
Significant Influence ◽  
Stock Return ◽  
Company Size ◽  
Research Model ◽  
Manufacturing Companies ◽  
Research Results ◽  
Moderating Variables

The research objective was to examine and analyze whether Profitability, Asset Structure, Firm Size simultaneously and partially influenced Stock Returns in Manufacturing Companies. In addition, this study also tries to prove whether Corporate Governance can be used as a moderator in the research model. The research results showed that simultaneously Profitability, Asset Structure, Firm Size significantly influenced Stock Returns. Partially, profitability has a positive and significant influence on Stock Returns. Asset Structure has a positive and significant influence on Stock Returns, and Company size has a positive and insignificant influence on Stock Returns. The variable of Corporate Governance can moderate the influence of Asset Structure on Stock Returns. However, Corporate Governance will not be able to moderate the influence of Profitability on Stock Returns. Keywords: Profitability, Asset Structure, Firm Size, Stock Return, and Corporate Governance.

scholarly journals Hedging Activities Information and Risk Management Committee Effectiveness: Malaysian evidence

2018 ◽  
Author(s):  
Azrul Bin Abdullah ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Significant Influence ◽  
Statistical Models ◽  
Voluntary Disclosure ◽  
Annual Reports ◽  
Management Committee ◽  
Corporate Governance Mechanisms ◽  
The Relationship ◽  
Risk Management Committee

This study examines the extent of information about hedging activities disclosures within the annual reports of Main Market companies listed on Bursa Malaysia. The extent of hedging activities disclosures is captured through a 32-item-template, which consists of a mandatory and voluntary disclosure scores. The results of this study indicate that the extent of information on hedging activities disclosure is still insufficient among the sampled companies even though the disclosure scored is quite high. This study also examines the relationship between the existence of risk management committee (RMC), its characteristics and the extent of information on hedging activities disclosure in two separate statistical models. The regression results imply that the existence of RMC is positive but does not significantly influence the extent of information on hedging activities disclosure. However its characteristics (i.e. RMC independence and RMC meeting) have a significant influence. The findings may provide some meaningful insights to regulators, policymakers and researchers, towards the establishment of RMC as a part of the internal corporate governance mechanisms. In addition to its existence, the effectiveness of RMC also needs to be emphasised.

scholarly journals Impact of Corporate Governance on Firms’ Financial Flexibility in the Emerging Economy: Evidence From Bangladesh

2019 ◽  
Vol 9 (4) ◽  
pp. 183
Author(s):  
Md Rashidul Islam ◽  
Man Wang ◽  
Muhammad Zulfiqar
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Significant Influence ◽  
Financial Constraints ◽  
Positive Impact ◽  
Financial Flexibility ◽  
Book Value ◽  
Internal Funds ◽  
Debt Capacity ◽  
The Relationship

Corporate governance has a positive impact on firm performance. Financial flexible firms are a better performer when there are financial constraints as well as financial crises. However, what motivates financial flexibility is a dearth research area in the existing finance literature. The objectives of this research are to investigate the relationship between corporate governance and financial flexibility; how corporate governance influence financial flexibility; and, what factors of corporate governance are dominant to influence financial flexibility. To pursue the research objectives we chose Cement Industry of Bangladesh as a case. We consider liquidity, Internal Funds and Unused debt capacity as the proxy of financial flexibility and Ownership Concentration, Board Size, Board Independence as Corporate Governance variables and Firm Size, Market to Book Ratio, Debt Capacity, Financial Constraints and Firm Age as control variable to estimate the relationship between corporate governance and financial flexibility. This study evidences that Board Structure has no significant influence on firms’ cash holding(Liquidity).However, Firms Age and Market to Book Value have a significant influence on firms' cash position. This study also finds that Ownership Structure has no positive impact on Firms' Unused Debt Capacity but Financial Constraints and Market to Book Value have a positive significant impact on firms' unused debt capacity. However, Firm Size has a positive relationship with Internal Funds.

Beyond Primacy: A Stakeholder Theory of Corporate Governance

2020 ◽  
Vol 2020 (1) ◽  
pp. 19765
Author(s):  
Pushpika Vishwanathan ◽  
Jan-Willem Stoelhorst
Keyword(s):  
Corporate Governance ◽  
Stakeholder Theory

The Imperfect Nature of Corporate Responsibilities to Stakeholders

2004 ◽  
Vol 14 (2) ◽  
pp. 201-217 ◽  
Author(s):  
David Lea
Keyword(s):  
Corporate Governance ◽  
Stakeholder Theory ◽  
Practical Reasoning ◽  
Imperfect Duties ◽  
Stakeholder Groups ◽  
Perfect Duties ◽  
Do So

Abstract:In this paper, I specifically consider the issue of corporate governance and normative stakeholder theory. In doing so, I argue that stakeholder theory and responsibilities to non-shareholder constituencies can be made more intelligible by reference to Kant’s conception of perfect and imperfect duties. I draw upon Onora O’Neill’s (1996) work, Towards Justice and Virtue: A Constructivist Account of Practical Reasoning. In her text O’Neill underlines a number of relevant issues including: the integration of particularist and universalist accounts of morality; the priority of obligations over rights; the importance of the distinction between imperfect and perfect duties; and the relation between the virtues and imperfect duties. On the basis of the foregoing analysis, the paper argues that business ethicists should avoid recommending the institutionalising of stakeholder responsibilities in terms of legally defined sets of stakeholder rights. Instead, we should regard stakeholder responsibilities as uniformalised imperfect duties. Conceiving responsibilities to all stakeholder groups in this manner, allows the firm the freedom to perfect these duties in ways appropriate to cultural and societal setting, and in accordance with the capacity to do so.

scholarly journals Impact of Income on Customers' Loyalty: Are Customers with Higher Income more Loyal?

2016 ◽  
Vol 7 (1) ◽  
pp. 81-88 ◽  
Author(s):  
Igor Klopotan ◽  
Kristina Vrhovec-Žohar ◽  
Edita Mahič
Keyword(s):  
Survey Research ◽  
Significant Influence ◽  
Conceptual Models ◽  
Scientific Contribution ◽  
Research Results ◽  
Practical Implications ◽  
Different Levels

Abstract Background: Recent research on customers’ loyalty mostly focuses on several indicators, such as price, income and promotion. However, the level of income and its impacts on customers' loyalty have not been investigated in greater details. Objectives: The main goal of this research is to investigate how different levels of income influence customers' loyalty. Methods/Approach: This paper tries to investigate customers' attitudes towards selected loyalty determinants, based on the survey research. Results: Several different factors which influence customers' loyalty are identified. Research results confirmed that the level of income has a significant influence on customers’ attitude towards loyalty determinants in Croatia. Conclusions: Besides the scientific contribution, this research on customers’ loyalty also has practical implications important when undertaking further steps for developing conceptual models of customers’ loyalty.

scholarly journals Firms’ legitimation through corporate governance and its association with risk and return in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kléber Formiga Miranda ◽  
Jefferson Ricardo do Amaral Melo ◽  
Orleans Silva Martins
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Management Practices ◽  
Stock Exchange ◽  
Risk And Return ◽  
Content Type ◽  
Risk Return ◽  
Governance Practices ◽  
Practical Implications ◽  
Different Levels

Purpose This study aims to examine the listing of firms at the highest corporate governance level of the Brazilian stock exchange (B3) as a means of legitimation and its relationship with risk and return on investment. Design/methodology/approach This paper analyzes 205 companies from 2010 to 2019, in which firms listed at the Novo Mercado level were compared with groups composed of other firms traded on B3. Findings The main results demonstrate that a listing at the supposedly higher level of corporate governance in Brazil does not indicate lower risk, a higher return or even a better risk-return ratio. Research limitations/implications The findings are restricted to this sample, representing the association identified between the analyzed phenomena and not a cause-effect relationship. Practical implications The highest level of corporate governance in Brazil brings together firms that present a higher risk (at least systematic) and lower returns (at least financial) because they seek to legitimize themselves in the market as firms committed to better management practices. Social implications These findings are useful to investors, the stock exchange, regulatory agents and the companies themselves to reflect on the purpose and usefulness of different levels of corporate governance in Brazil. Originality/value This study differs from the others that relate corporate governance to risk or return because it does not deal individually with corporate governance practices, but rather the phenomenon that is listed in a special governance level, created by the stock exchange, serving as a kind of seal legitimation.

scholarly journals STAKEHOLDER THEORY DAN KARYA KESELAMATAN SCHINDLER

2015 ◽  
Vol 9 (1) ◽  
pp. 37
Author(s):  
Edward Nicodemus Lontah
Keyword(s):  
World War Ii ◽  
Business Ethics ◽  
Stakeholder Theory ◽  
Legal Liability ◽  
World War ◽  
Nazi Regime ◽  
Shareholder Theory ◽  
Solid Foundation ◽  
The Government ◽  
A Company

<p><strong><span>Abstrak</span></strong><br />Penelitian Donalson dan Peterson menunjukkan bahwa <em>stakeholder theory</em> memiliki dasar yang lebih kuat dibandingkan epistemology dari shareholder theory untuk menganalisis mengenai performa etika bisnis dan kewajiban moral suatu perusahaan. Artikel ini akan menganalisis aktivitas bisnis Oskar Schindler menggunakan pendekatan stakeholder theory dalam CSR. Pembahasan akan difokuskan pada tanggung jawab moral Schindler sebagai direksi. Dalam aktivitas perusahaan yang dipimpinnya, tanggung jawab moril maupun ekonomis yang dijalankan Schindler akan saling berkelindan dengan tanggung jawab hukum yang seharusnya diemban oleh perusahaan. Pada akhirnya artikel ini sampai pada kesimpulan bahwa keputusan-keputusan manajerial etis yang diterapkan oleh direksi dan manajemen suatu perusahaan adalah suatu tanggung jawab moral yang seringkali bertabrakan dengan tanggung jawab ekonomis dan tanggung jawab hukum yang seharusnya dijalankan oleh suatu perusahaan.</p><p><strong><em><span>Abstract</span></em></strong><br />Donaldson and Peterson studies have shown that stakeholder theory has a more solid foundation than the epistemology of shareholder theory to analyze the performance of business ethics and moral duty of a company. This article discussed the business activities of Oskar Schindler, an industrialist war-profiteer during World War II. Schindler's business which was originally run by the government under the Nazi regime, eventually opposed the mission of economic and legal liability imposed by the regime. Schindler's transformation of vision and business mission in this article demonstrate the characteristics and connection of layers in descriptive, instrumental and normative stakeholder theory in the concept of "normative, instrumental and descriptive stakeholder theory" according to Donaldson and Peterson.</p>

scholarly journals PENGARUH MARKET POWER DAN CORPORATE GOVERNANCE TERHADAP FUTURE EARNINGS RESPONSE COEFFICIENT PADA PERUSAHAAN DI BURSA EFEK INDONESIA

2014 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Ellisa Putri Mita Pradhana ◽  
Etty Murwaningsari
Keyword(s):  
Corporate Governance ◽  
Market Power ◽  
Significant Influence ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Internal Auditor ◽  
Future Earnings ◽  
Earnings Response Coefficient ◽  
Structure Equation Modeling ◽  
Earnings Response

<span class="fontstyle0">This research aimed to analyze the influence of Market Power and CorporateGovernance to the FERC with Leverage as an intervening variable. The samples in this study were 203 manufacturing companies listed on the IDX. This research used Structure Equation Modeling (SEM) to analyze the influence of independent variables to dependent variable with intervening variable. The results are, market power has a negative significant influence to the FERC, corporate governance measured by board of commissioner and board size have an insignificant influence to the FERC, and corporate governance measured by internal auditor has a positive significant influence to the FERC.</span>

Sign in / Sign up

Export Citation Format

Share Document