Corporate governance and stakeholder capitalism
ISSN: 0307-4358
Article publication date: 1 March 2022
Issue publication date: 7 July 2022
Abstract
Purpose
The authors revisit the inquiry into the primacy of shareholders vis-à-vis stakeholders that has been debated since 19th Century. The authors consider B-business firms as the closest groups of firms that have considerable similarities to stakeholders' firms. The authors model the impact of being certified as stakeholders (B-business) firms in a worldwide environment.
Design/methodology/approach
Employing daily returns data of B-corporations in a global setting during 2010–2021, the authors quantify and compare the firms' performance in the pre- and post-certified periods, measure the effect of their environmental social governance (ESG) scores on their performance and gauge the entire results on a standardized approach that yields easy interpretation.
Findings
Subject to some caveats arising from limited coverage and the lack of data on proper control variables, the findings, based on the statistical significance of the estimated coefficients, do not indicate any changes in B-corporations' performance in their post-certification dates. Notwithstanding that, market factor appears to be the driving force consistently.
Originality/value
Prior studies on B-corporations are overwhelmingly qualitative. The current study is the first study that evaluate performance of B-corporations' returns at firm level with daily data.
Keywords
Citation
Shahrokhi, M., Parhizgari, A.M., Hashemijoo, M., Okafor, C.E., Nishikawa, Y. and Dastan, A. (2022), "Corporate governance and stakeholder capitalism", Managerial Finance, Vol. 48 No. 8, pp. 1123-1136. https://doi.org/10.1108/MF-01-2022-0056
Publisher
:Emerald Publishing Limited
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