Session 411

Ownership and Governance

Track D

Date: Monday, September 22, 2014

Track O

Time: 16:30 – 17:45

Paper

Room: Londres


Session Chair:

  • Kurt Desender, University Carlos III

Title: Foreign Ownership and Corporate Governance Patterns: The Board-Auditor Relationship in Japan

Authors

  • Kurt Desender, University Carlos III
  • Ruth Aguilera, Northeastern University
  • Monica Lopezpuertas-Lamy, Carlos III University of Madrid
  • Rafel Crespi-Cladera, University of the Balearic Islands

Abstract: Our research asks under what conditions established corporate governance practices in stakeholder-oriented firms are altered with the entrance of shareholder-oriented foreign ownership. Drawing on a contingency approach which conceptualizes corporate governance as a system of interrelated practices having strategic and institutional complementarities, we claim that board monitoring is contingent on the ownership of the firm, and in particular on the level and type of foreign ownership. Our results suggest that the monitoring role of independent directors is only activated when foreign ownership is high, while such behavior is absent when foreign ownership is low. Our findings uncover the possibility of the co-existence of different corporate governance logics within a given country, shaped by the nature and weight of foreign owners, controlling for other factors.

Title: Networks Structures in China: Role of Board Interlocks in Internationalization of Chinese MNEs

Authors

  • Iwona Sulinska, Copenhagen Business School

Abstract: The presented proposal comprises description of an ongoing PhD project. The research project investigates structural patterns of board interlocks in China and implications of network structures for internationalization of Chinese multinational enterprises (MNEs). Analysis of secondary data for listed companies on Shanghai Stock Exchange and Shenzhen Stock Exchange aims to depict intercorporate networks (interlocking directorates) in Mainland China that have been created in light of ongoing regulatory changes and attempts to improve corporate governance practices. Likewise, drawing upon resource dependence theory and social network perspective, external function of board of directors is examined as one of prerequisites of internationalization in the context of Chinese MNEs.

Title: Ownership of the Firm and New Product Introduction in Chinese Manufacturing, 1998-2007

Authors

  • Fan Xia, Peking University
  • Gordon Walker, Southern Methodist University

Abstract: Building on the market transition literature, we argue that three owner types in emerging markets - state, private, and foreign – vary in their practices and resource networks and therefore in their effects on product innovation. Our data are Chinese manufacturing firms from 1998 to 2007. We find that 100% owner types have the same innovation propensity, but joint venture forms vary significantly. Moreover, owner types differ in their regional spillovers, based implicitly on interfirm networking. Large state firms are regional hubs; large private firms dampen innovation in other firms; and small private firms induce innovation among themselves. We also argue and find that private firms have more weak ties and therefore receive more spillovers. We discuss these findings regarding innovation in emerging markets.

Title: Who is Monitoring the Monitor? The Influence of Ownership Networks and Organizational Transparency on Investment

Authors

  • Anna Grosman, Loughborough University
  • Aija Leiponen, Cornell University

Abstract: We examine the effects of ownership networks and transparency and disclosure (TD), a central aspect of corporate governance, on investments. Building on resource dependence and agency theories, we argue that ownership networks fill the institutional voids in emerging economies and provide the necessary resources or accountability to enable firm growth through long-term commitments of capital. We find that a firm’s position in an ownership network and TD are positively associated with investments. Ownership network positions and transparency practices significantly interact: firms in peripheral network positions tend to benefit more from improvements to their TD practices. This interaction depends on the type of network. We find that firms with greater agency concerns benefit more from TD in committing to investment.

All Sessions in Track D...

Mon: 08:00 – 09:15
Session 413: CSR and Diversity
Mon: 11:00 – 12:15
Session 412: Public-Private Relationships and Politics
Mon: 14:45 – 16:00
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 411: Ownership and Governance
Tue: 08:00 – 09:15
Session 410: Governance Relationships
Tue: 17:15 – 18:30
Session 415: Small Firms in a Networked Environment

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 311: The Power of Power: The Role of Power and Politics in Strategy Processes
Session 386: Entrepreneurial Corporate Governance
Sun: 11:15 – 12:30
Session 476: The Dark Side of Strategic Leadership and Governance
Sun: 15:45 – 17:00
Session 435: What Happens After the CEO Has (Been) Gone?
Sun: 17:15 – 18:30
Session 611: Strategic Leadership and Governance IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 458: Those at the Top Matter!
Mon: 11:00 – 12:15
Session 336: CEO Roles, Frames, and Traits
Mon: 14:45 – 16:00
Session 331: CEO Compensation: What we Know, What we Need to Study
Mon: 16:30 – 17:45
Session 337: Power at the Top - The Influence of Directors
Session 411: Ownership and Governance
Tue: 08:00 – 09:15
Session 428: Managing External Dependencies
Session 467: Putting Pressure on the CEO
Tue: 11:00 – 12:15
Session 465: The Importance of Corporate Governance
Tue: 15:30 – 16:45
Session 429: Director Selection and Influence
Tue: 17:15 – 18:30
Session 431: Agents, Principals, and Owners
Session 432: Upper Echelons Revisited


Strategic Management Society

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