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Ownership Concentration and CSR Policy of European Multinational Enterprises

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  • Lammertjan Dam
  • Bert Scholtens

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Abstract

This study investigates how ownership concentration in European multinational firms is associated with these firms’ corporate social responsibility (CSR). We employ factor analysis on responsibility data from EIRiS and use a regression analysis. Using firm-level data for almost 700 European firms, we find that shareholder concentration is significantly related to such policies. That is, more concentrated ownership goes hand in hand with poorer CSR policies. In our analysis, we control for size, leverage, profitability, industry, and country of origin. We use several indicators for ownership concentration. We also find that with more concentrated ownership, CSR of the firm gets worse. We suggest that especially with large shareholders, CSR would need to be included in their performance assessment. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Lammertjan Dam & Bert Scholtens, 2013. "Ownership Concentration and CSR Policy of European Multinational Enterprises," Journal of Business Ethics, Springer, vol. 118(1), pages 117-126, November.
  • Handle: RePEc:kap:jbuset:v:118:y:2013:i:1:p:117-126
    DOI: 10.1007/s10551-012-1574-1
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Wenjing Li & Xiaoyan Lu, 2016. "Institutional Interest, Ownership Type, and Environmental Capital Expenditures: Evidence from the Most Polluting Chinese Listed Firms," Journal of Business Ethics, Springer, vol. 138(3), pages 459-476, October.
    2. Patricia Crifo & Vanina D. Forget, 2015. "The Economics Of Corporate Social Responsibility: A Firm-Level Perspective Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 112-130, February.
    3. repec:gam:jsusta:v:10:y:2018:i:2:p:301-:d:128472 is not listed on IDEAS
    4. El Ghoul, Sadok & Guedhami, Omrane & Wang, He & Kwok, Chuck C.Y., 2016. "Family control and corporate social responsibility," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 131-146.
    5. Dina Patrisia & Shabbir Dastgir, 2017. "Diversification and corporate social performance in manufacturing companies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 121-139, April.
    6. Del Bosco, Barbara & Misani, Nicola, 2016. "The effect of cross-listing on the environmental, social, and governance performance of firms," Journal of World Business, Elsevier, vol. 51(6), pages 977-990.
    7. Ducassy, Isabelle & Montandrau, Sophie, 2015. "Corporate social performance, ownership structure, and corporate governance in France," Research in International Business and Finance, Elsevier, vol. 34(C), pages 383-396.

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