Research Briefs

Global companies operating in diverse markets can use corporate citizenship programs to create goodwill that can help overcome barriers they may confront as foreign organizations. This is best achieved when firms balance core competencies and expectations from their home base of operations with the expectations of specific global sites.

Researchers examined whether independent environmental performance ratings of firms lead to improved practices and performance. The results show that companies with poor environmental ratings and those within highly regulated industries are more likely to improve when rated on their performance.

This study looked at the financial effects on firms from publicly available negative word of mouth. Researchers found a negative impact on cash flow and stock prices that can trigger a cycle generating further negative word of mouth about a firm.

Researchers examined the connection between transparency and stock liquidity. They found that stocks of transparent firms are more reliably liquid to trade than stocks of opaque firms, which can make transparent firms more attractive to investors and increase their value.

This study explored how different types of groups perform under different kinds of leaders. Researchers found that proactive groups—composed of employees who actively participate in the work process—perform better under socially introverted leaders. More passive groups, in contrast, perform better under extraverted leaders.

This study looked at the connection between the level of information investors have about a firm and the cost of capital for a firm. The results suggest that the benefits of information disclosure and dissemination may outweigh the costs for some firms.

Researchers investigated why employees participate in employee volunteer programs. They found that employee motivations for participating in these programs differ substantially from motivations for volunteering outside of work. Employee volunteers look for opportunities to advance their careers and help their employers while participating in work-based programs.

This study looked at consumers’ perceptions of a company and whether they see natural links between a company’s brand image and its corporate citizenship. Researchers found that consumers generally don’t see a connection between luxury brands and corporate citizenship, making it important for such companies to carefully consider how they communicate about their corporate citizenship.

This study investigated the ways in which employee volunteer programs can benefit companies. Researchers found that employees in these programs are likely to grow emotionally attached to their company, and to buy into the company’s brand, business goals, and strategies.

Researchers investigated which types of leaders are best suited to initiating and implementing CSR practices in firms. They found that transformational leaders—inspirational drivers of change—are best suited to initiating CSR practices while transactional leaders—by the numbers efficiency experts—are best suited to deriving business benefits from these practices.

This study explored what happens when the outgoing CEO of a company stays on as board chair. Researchers found that this thorny dynamic obstructs organizational change and inhibits major changes in company performance, either positive or negative.

This study explored how having foreign directors on a board affected a company. For the most part, researchers found that the presence of a foreign director negatively impacted governance. Firms with a foreign director were more likely to misrepresent earnings, overcompensate the CEO, and overlook poor CEO performance. However, foreign directorships seemed to help firms earn higher returns on the acquisitions they made in the director’s region of origin.