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Maximizing stakeholders' interests: An empirical analysis of the stakeholder approach to corporate governance

Author

Listed:
  • Ayuso, Silvia

    (IESE Business School)

  • Rodriguez, Miguel A.

    (IESE Business School)

  • Garcia, Roberto

    (IESE Business School)

  • Ariño, Miguel A.

    () (IESE Business School)

Abstract

The purpose of this paper is to build on the emerging stakeholder model of corporate governance by analyzing the CSR function at board level, board diversity, and stakeholder engagement, and how it relates to financial performance. Based on an empirical study of an international sample of large companies, we find board responsibility for CSR to be a key factor in promoting engagement with primary and secondary stakeholders of the firm. Depending on the legal tradition of the country in which the company is based, we find evidence that board diversity and stakeholder engagement are positively correlated with firm financial performance.

Suggested Citation

  • Ayuso, Silvia & Rodriguez, Miguel A. & Garcia, Roberto & Ariño, Miguel A., 2007. "Maximizing stakeholders' interests: An empirical analysis of the stakeholder approach to corporate governance," IESE Research Papers D/670, IESE Business School.
  • Handle: RePEc:ebg:iesewp:d-0670
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    File URL: http://www.iese.edu/research/pdfs/DI-0670-E.pdf
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    References listed on IDEAS

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    1. Deborah Dahlen Zelechowski & Diana Bilimoria, 2004. "Characteristics of Women and Men Corporate Inside Directors in the US," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(3), pages 337-342, July.
    2. Gerald Vinten, 2001. "Shareholder versus Stakeholder - is there a Governance Dilemma?," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(1), pages 36-47, January.
    3. Steve Letza & Xiuping Sun & James Kirkbride, 2004. "Shareholding Versus Stakeholding: a critical review of corporate governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(3), pages 242-262, July.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Nicholas Walt & Coral Ingley, 2003. "Board Dynamics and the Influence of Professional Background, Gender and Ethnic Diversity of Directors," Corporate Governance: An International Review, Wiley Blackwell, vol. 11(3), pages 218-234, July.
    6. Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-1177, December.
    7. Gordon E. Greenley, 1997. "Multiple Stakeholder Orientation in UK Companies and the Implications for Company Performance," Journal of Management Studies, Wiley Blackwell, vol. 34(2), pages 259-284, March.
    8. Andrew Gamble & Gavin Kelly, 2001. "Shareholder Value and the Stakeholder Debate in the UK," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(2), pages 110-117, April.
    9. Niclas L. Erhardt & James D. Werbel & Charles B. Shrader, 2003. "Board of Director Diversity and Firm Financial Performance," Corporate Governance: An International Review, Wiley Blackwell, vol. 11(2), pages 102-111, April.
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    Cited by:

    1. Ayuso, Silvia & Argandoña, Antonio, 2007. "Responsible corporate governance: Towards a stakeholder board of directors?," IESE Research Papers D/701, IESE Business School.
    2. Bruna Marinangeli, 2012. "Orientamento allo stakeholder engagement e performance economiche nelle aziende bancarie: un’analisi empirica," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2012(3), pages 319-335.

    More about this item

    Keywords

    Corporate governance; corporate social responsibility; board diversity; stakeholder engagement; firm performance;

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