A Rising Tide Lifts All Boats: The Effects of Common Ownership on Corporate Social Responsibility

References

• Amel-Zadeh A, Serafeim G (2018) Why and how investors use ESG information: Evidence from a global survey. Financial Anal. J. 74(3):87–103.Crossref, Google Scholar
• Appel IR, Gormley TA, Keim DB (2016) Passive investors, not passive owners. J. Financial Econom. 121(1):111–141.Crossref, Google Scholar
• Azar J, Schmalz MC, Tecu I (2018) Anticompetitive effects of common ownership. J. Finance 73(4):1513–1565.Crossref, Google Scholar
• Bansal P, DesJardine MR (2014) Business sustainability: It is about time. Strategic Organ. 12(1):70–78.Crossref, Google Scholar
• Bansal P, Song H-C (2017) Similar but not the same: Differentiating between corporate sustainability and corporate responsibility. Acad. Management Ann. 11(1):105–149.Crossref, Google Scholar
• Barnett ML, Hoffman AJ (2008) Beyond corporate reputation: Managing reputational interdependence. Corporate Reputation Rev. 11(1):1–9.Crossref, Google Scholar
• Barnett ML, Salomon RM (2012) Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management J. 33(11):1304–1320.Crossref, Google Scholar
• Berle AA, Means GGC (1932) The Modern Corporation and Private Property (Macmillan, New York).Google Scholar
• Blacconiere WG, Patten DM (1994) Environmental disclosures, regulatory costs, and changes in firm value. J. Accounting Econom. 18(3):357–377.Crossref, Google Scholar
• Borah A, Tellis GJ (2016) Halo (spillover) effects in social media: Do product recalls of one brand hurt or help rival brands? J. Marketing Res. 53(2):143–160.Crossref, Google Scholar
• Brammer S, Millington A (2004) The development of corporate charitable contributions in the UK: A stakeholder analysis. J. Management Stud. 41(8):1411–1434.Crossref, Google Scholar
• Brochet F, Loumioti M, Serafeim G (2015) Speaking of the short-term: Disclosure horizon and managerial myopia. Rev. Accounting Stud. 20(3):1122–1163.Crossref, Google Scholar
• Burbano VC (2016) Social responsibility messages and worker wage requirements: Field experimental evidence from online labor marketplaces. Organ. Sci. 27(4):1010–1028.Link, Google Scholar
• Bushee BJ (1998) Investors on myopic R&D investment behavior. Accounting Rev. 73(3):305–333.Google Scholar
• Cao J, Liang H, Zhan X (2019) Peer effects of corporate social responsibility. Management Sci. 65(12):5487–5503.Link, Google Scholar
• Chen Y-C, Hung M, Wang Y (2018) The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China. J. Accounting Econom. 65(1):169–190.Crossref, Google Scholar
• Cheng X, Wang HH, Wang X (2021) Common institutional ownership and corporate social responsibility. J. Banking Finance 136:106218.Crossref, Google Scholar
• Christophe SE, Lee H (2020) Material and immaterial corporate social responsibility and financial performance: Evidence from IPOs. Acad. Management Discovery 7(3):406–418.Crossref, Google Scholar
• Cobb JA (2015) Risky business: The decline of defined benefit pensions and firms’ shifting of risk. Organ. Sci. 26(5):1332–1350.Link, Google Scholar
• Coffee JC (2021) The future of disclosure: ESG, common ownership, and systematic risk. Columbia Bus. Law Rev. 2:602–650.Google Scholar
• Condon M (2020a) Climate change’s new ally: Big finance. Boston Rev. 16:97–109.Google Scholar
• Condon M (2020b) Externalities and the common owner. Washington Law Rev. 95(1):1–81.Google Scholar
• Connelly BL, Tihanyi L, Certo ST, Hitt MA (2010) Marching to the beat of different drummers: The influence of institutional owners on competitive actions. Acad. Management J. 53(4):723–742.Crossref, Google Scholar
• Connelly BL, Lee KB, Tihanyi L, Certo ST, Johnson JL (2019) Something in common: Competitive dissimilarity and performance of rivals with common shareholders. Acad. Management J. 62(1):1–21.Crossref, Google Scholar
• Dai X, Qiu Y (2021) Common ownership and corporate social responsibility. Rev. Corporate Finance Stud. 10(3):551–577.Crossref, Google Scholar
• Davis GF (2008) A new finance capitalism? Mutual funds and ownership re‐concentration in the United States. Eur. Management Rev. 5(1):11–21.Crossref, Google Scholar
• Davis GF (2009a) Managed by the Markets: How Finance Re-Shaped America (Oxford University Press, Oxford, UK).Google Scholar
• Davis GF (2009b) The rise and fall of finance and the end of the society of organizations. Acad. Management Perspectives 23(3):27–44.Crossref, Google Scholar
• Davis GF (2010) The twilight of the Berle and Means corporation. Seattle University Law Rev. 34(4):1121–1138.Google Scholar
• DesJardine MR, Bansal P (2019) One step forward, two steps back: How negative external evaluations can shorten organizational time horizons. Organ. Sci. 30(4):761–780.Link, Google Scholar
• DesJardine MR, Durand R (2020) Disentangling the effects of hedge fund activism on firm financial and social performance. Strategic Management J. 41(6):1054–1082.Crossref, Google Scholar
• DesJardine MR, Bansal P, Yang Y (2019) Bouncing back: Building resilience through social and environmental practices in the context of the 2008 Global Financial Crisis. J. Management 45(4):1434–1460.Crossref, Google Scholar
• DesJardine MR, Marti E, Durand R (2021) Why activist hedge funds target socially responsible firms: The reaction costs of signaling corporate social responsibility. Acad. Management J. 64(3):851–872.Crossref, Google Scholar
• Di Giuli A, Kostovetsky L (2014) Are red or blue companies more likely to go green? Politics and corporate social responsibility. J. Financial Econom. 111(1):158–180.Crossref, Google Scholar
• Diestre L, Rajagopalan N (2014) Toward an input-based perspective on categorization: Investor reactions to chemical accidents. Acad. Management J. 57(4):1130–1153.Crossref, Google Scholar
• Dikolli SS, Kulp SL, Sedatole KL (2009) Transient institutional ownerhip and CEO contracting. Accounting Rev. 84(3):737–770.Crossref, Google Scholar
• Dowell G, Hart S, Yeung B (2000) Do corporate global environmental standards create or destroy market value? Management Sci. 46(8):1059–1074.Link, Google Scholar
• Dyreng SD, Hoopes JL, Wilde JH (2016) Public pressure and corporate tax behavior. J. Accounting Res. 54(1):147–186.Crossref, Google Scholar
• Federal Trade Commission (2018) Hearings on competition and consumer protection in the 21st century. Accessed January 18, 2022, https://www.ftc.gov/news-events/events-calendar/ftc-hearing-8-competition-consumer-protection-21st-century.Google Scholar
• Flammer C (2015) Does product market competition foster corporate social responsibility? Evidence from trade liberalization. Strategic Management J. 36(10):1469–1485.Crossref, Google Scholar
• Flammer C (2018) Competing for government procurement contracts: The role of corporate social responsibility. Strategic Management J. 39(5):1299–1324.Crossref, Google Scholar
• Flammer C, Toffel MW, Viswanathan K (2021) Shareholder activism and firms’ voluntary disclosure of climate change risk. Strategic Management J. 42(1):1850–1879.Crossref, Google Scholar
• Gilje EP, Gormley TA, Levit D (2020) Who’s paying attention? Measuring common ownership and its impact on managerial incentives. J. Financial Econom. 137(1):152–178.Crossref, Google Scholar
• Godfrey PC, Merrill CB, Hansen JM (2009) The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management J. 30(4):425–445.Crossref, Google Scholar
• Goranova M, Ryan LV (2014) Shareholder activism: A multidisciplinary review. J. Management 40(5):1230–1268.Crossref, Google Scholar
• Goranova M, Ryan LV (2022) The corporate objective revisited: The shareholder perspective. J. Management Stud. 59(2):526–554.Crossref, Google Scholar
• Goranova M, Dharwadkar R, Brandes P (2010) Owners on both sides of the deal: Mergers and acquisitions and overlapping institutional ownership. Strategic Management J. 31(10):1114–1135.Crossref, Google Scholar
• Grewal J, Hauptmann C, Serafeim G (2020) Material sustainability information and stock price informativeness. J. Bus. Ethics 171(3):513–544.Crossref, Google Scholar
• Guay T, Doh JP, Sinclair G (2004) Non-governmental organizations, shareholder activism, and socially responsible investments: Ethical, strategic, and governance implications. J. Bus. Ethics 52(1):125–139.Crossref, Google Scholar
• Gutiérrez G, Philippon T (2017) Declining Competition and Investment in the US (National Bureau of Economic Research, Cambridge, MA).Crossref, Google Scholar
• Hawn O, Ioannou I (2016) Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility. Strategic Management J. 37(13):2569–2588.Crossref, Google Scholar
• He JJ, Huang J (2017) Product market competition in a world of cross-ownership: Evidence from institutional blockholdings. Rev. Financial Stud. 30(8):2674–2718.Crossref, Google Scholar
• Hillman AJ, Keim GD (2001) Shareholder value, stakeholder management, and social issues: What’s the bottom line? Strategic Management J. 22(2):125–139.Crossref, Google Scholar
• Hoffman AJ (2001) From Heresy to Dogma: An Institutional History of Corporate Environmentalism (Stanford University Press, Stanford, CA).Google Scholar
• Hsu Y-S, Liu CZ, Yang Y-J, Chou Y-Y (2013) Implications of the British Petroleum oil spill disaster for its industry peers—Evidence from the market reaction and earnings quality. Asia-Pacific J. Accounting Econom. 20(3):281–296.Crossref, Google Scholar
• Huang C-L, Kung F-H (2010) Drivers of environmental disclosure and stakeholder expectation: Evidence from Taiwan. J. Bus. Ethics 96(3):435–451.Crossref, Google Scholar
• Huang J, Li H, Zhu G (2017) Environmental disclosure as a proactive tool to intra-industry market reaction in China. Appl. Econom. Lett. 24(10):686–689.Crossref, Google Scholar
• Inkpen AC, Sundaram AK (2022) The endurance of shareholder value maximization as the preferred corporate objective. J. Management Stud. 59(2):555–568.Crossref, Google Scholar
• Jonsson S, Greve HR, Fujiwara-Greve T (2009) Undeserved loss: The spread of legitimacy loss to innocent organizations in response to reported corporate deviance. Admin. Sci. Quart. 54(2):195–228.Crossref, Google Scholar
• Khan M, Serafeim G, Yoon A (2016) Corporate sustainability: First evidence on materiality. Accounting Rev. 91(6):1697–1724.Crossref, Google Scholar
• Kölbel JF, Busch T, Jancso LM (2017) How media coverage of corporate social irresponsibility increases financial risk. Strategic Management J. 38(11):2266–2284.Crossref, Google Scholar
• Krueger P, Sautner Z, Starks LT (2020) The importance of climate risks for institutional investors. Rev. Financial Stud. 33(3):1067–1111.Crossref, Google Scholar
• Lewellen J, Lewellen K (2022) Institutional investors and corporate governance: The incentive to be engaged. J. Finance 77(1):213–264.Google Scholar
• Lewellen K, Lowry M (2021) Does common ownership really increase firm coordination? J. Financial Econom. 141(1):322–344.Crossref, Google Scholar
• Liang H, Renneboog L (2017) On the foundations of corporate social responsibility. J. Finance 72(2):853–910.Crossref, Google Scholar
• Lins KV, Servaes H, Tamayo A (2017) Social capital, trust, and firm performance: The value of corporate social responsibility during the Financial Crisis. J. Finance 72(4):1785–1824.Crossref, Google Scholar
• Manchiraju H, Rajgopal S (2017) Does corporate social responsibility (CSR) create shareholder value? Evidence from the Indian Companies Act of 2013. J. Accounting Res. 55(5):1257–1300.Crossref, Google Scholar
• McCahery JA, Sautner Z, Starks LT (2016) Behind the scenes: The corporate governance preferences of institutional investors. J. Finance 71(6):2905–2932.Crossref, Google Scholar
• Mun E, Jung J (2018) Change above the glass ceiling: Corporate social responsibility and gender diversity in Japanese firms. Admin. Sci. Quart. 63(2):409–440.Crossref, Google Scholar
• Neubaum DO, Zahra SA (2006) Institutional ownership and corporate social performance: The moderating effects of investment horizon, activism, and coordination. J. Management 32(1):108–131.Google Scholar
• Organisation for Economic Co-operation and Development (2017) Common ownership by institutional investors and its impact on competition. Accessed January 18, 2022, https://www.oecd.org/competition/common-ownership-and-its-impact-on-competition.htm.Google Scholar
• Park J, Sani J, Shroff N, White H (2019) Disclosure incentives when competing firms have common ownership. J. Accounting Econom. 67(2-3):387–415.Crossref, Google Scholar
• Paruchuri S, Misangyi VF (2015) Investor perceptions of financial misconduct: The heterogeneous contamination of bystander firms. Acad. Management J. 58(1):169–194.Crossref, Google Scholar
• Porac JF, Wade JB, Pollock TG (1999) Industry categories and the politics of the comparable firm in CEO compensation. Admin. Sci. Quart. 44(1):112–144.Crossref, Google Scholar
• Posner EA, Scott Morgan FM, Weyl EG (2016) A proposal to limit the anticompetitive power of institutional investors. Antitrust Law J. 81(3):669–728.Google Scholar
• Sharfman MP, Fernando CS (2008) Environmental risk management and the cost of capital. Strategic Management J. 29(6):569–592.Crossref, Google Scholar
• Shi W, Wajda D, Aguilera RV (2022) Interorganizational spillover: A review and a proposal for future research. J. Management 48(1):185–210.Crossref, Google Scholar
• Useem M (1993) Executive Defense: Shareholder Power and Corporate Reorganization (Harvard University Press, Cambridge, MA).Google Scholar
• Wry TE (2009) Does business and society scholarship matter to society? Pursuing a normative agenda with critical realism and neoinstitutional theory. J. Bus. Ethics 89(2):151–171.Crossref, Google Scholar