Business Law, Public Responsibility, and Ethics Commons^™

Business Responsibility And Sustainability In India : A Comprehensive Analysis Of Brsr Disclosures Of India’S Top 1,000 Listed Companies For Fy 2024–25, Rajeev Ranjan Tripathi, Aditya Gupta, Mohan Krishna, Sonika Gandhi

Monograph and Other Reports

The intersection of capital markets, corporate governance, and sustainable development has, over three decades, given rise to a transformative shift in management practice: the systematic disclosure and evaluation of Environmental, Social, and Governance (ESG) performance. Once confined to niche ethical investment circles, ESG reporting has evolved into a mainstream imperative, shaping investment decisions, regulatory frameworks, and stakeholder expectations across both developed and emerging economies. Today, ESG performance is no longer an addendum to financial reporting but a substantive dimension of enterprise value and long-term organisational legitimacy. India’s ESG reporting journey reflects a trajectory of incremental but decisive policy evolution. The …

Socially-Minded Investors And Corporate Behavior, Merritt B. Fox, Menesh S. Patel

Faculty Scholarship

Many equity investors are concerned with the world’s worsening social and environmental problems and are losing faith in the capacity of political institutions to respond. Corporate behavior is often contributing to these problems. Some investors, at least if fully informed as to costs and benefits involved, would favor corrective changes to corporate behavior even where that would lessen their investment returns. Two important questions arise: (1) given existing law, are such willing-to-sacrifice equity investors currently affecting firm behavior; and (2) should there be legal reform that makes firms more sensitive to these willing-to-sacrifice investors’ preferences? This Article seeks to answer …

Board Ethical Commitment And Corporate Performace: A Qualitative Perspective, Ahmad Saiful Azlin Puteh Salin, Zubaidah Ismail, Malcolm Smith

Research outputs 2022 to 2026

The purpose of the study is to explore the responsibilities of directors in creating a good ethical culture in their organisation and examine whether good ethical practices are able to enhance a company’s performance. To achieve this purpose, face-to-face semi-structured interviews with directors as the respondents are employed as a data collection method. This study found that board ethical commitments are necessary elements for sustaining the good performance of a company. The planning and monitoring of these ethical practices are the responsibilities of the board of directors, which then will be executed by top management, led by the chief executive …

Board Commitment, Continuous Education Program And Firm Performance: A Law And Governance Context, Ahmad Saiful Azlin Puteh Salin, Zubaidah Ismail, Malcolm Smith

Research outputs 2022 to 2026

The majority of worldwide corporate governance codes mandate that directors allocate an adequate amount of time to fulfil their responsibilities and consistently enhance their knowledge and abilities through continuous education programs. These two factors are crucial in propelling the organisation towards higher levels of success and satisfying the needs of the stakeholders. This research aims to analyse the impact of board commitment and their access to education on firm performance. After analysing the annual reports of Malaysian public listed companies, this study does not find any conclusive evidence to support earlier research that highlights the advantages of having a director …

The Impact Of Corporate Disclosure And Website Informativeness On Enhancing Corporate Governance And Performance, Ahmad Saiful Azlin Puteh Salin, Zubaidah Ismail, Malcolm Smith

Research outputs 2022 to 2026

This study aims to investigate how transparency affects the company’s performance. Transparency in corporate governance is crucial to prevent misconduct, encourage accountability, and integrity, and ultimately, enhance sustainable performance in businesses. In contrast, inadequate disclosure of information can lead to business scandals and fraud, diminishing trust in institutions, harming stakeholders, and adversely affecting the entire economy (Salin et al., 2019). The study measures transparency through firm disclosure policy and website informativeness. This study employs archival analysis of the annual reports of the top 500 publicly listed firms in Malaysia based on market capitalization. Nine items were created to assess the …

Regulating The Corporate Governance Of State-Owned Enterprises In Investment Arbitration, Mark Mclaughlin

Research Collection Yong Pung How School Of Law

The renaissance of sovereign investment is one of the defining economic trends of the 21st century. While many states have benefitted, and continue to benefit, from an influx of state-backed foreign investment, this embrace is not without its hesitancies. Host states are particularly concerned that state-owned enterprises (SOE s) pursue non-commercial policy objectives, maintain lower levels of transparency than their private counterparts, and operate with inferior standards of responsible business conduct. In response, domestic regulators have enacted a series of countermeasures for SOE investment, including requirements that such enterprises must invest on a “commercial basis.” However, the regulation of foreign …

Corporate Governance Guidelines: How To Improve Disclosure And Promote Better Corporate Governance In Public Companies, Jennifer O'Hare

Faculty Publications

If you are a shareholder of a public corporation, you may think it would be easy to find basic information about your shareholder rights, such as whether shareholders have the right to call special stockholder meetings. You would probably assume that the information would be disclosed in the company’s “Corporate Governance Guidelines,” (CGGs) which, according to a New York Stock Exchange (NYSE) rule, must be posted on the company’s website for shareholder review. But, as this article shows, companies are not required to disclose information about shareholder rights in their corporate governance guidelines, and most companies have chosen not to …

Don't Forget The "G" In Esg: The Sec And Corporate Governance Disclosure, Jennifer O'Hare

Faculty Publications

For years, many shareholders—both institutional and individual investors—have pressured the Securities and Exchange Commission (“SEC”) to require public companies to disclose more information about the environmental, social, and governance (“ESG”) risks facing the company. However, the SEC has generally refused calls to require public corporations to disclose, for example, how they are addressing climate change or workforce diversity challenges. With a new president in the White House and a new administration at the SEC, the SEC will soon propose new ESG disclosure rules, requiring more information about the “E” and the “S” in ESG. But the SEC has forgotten the …

Theranos: Case Study And Examination Of The Fraud Triangle, Abbey Jennings

Finance Undergraduate Honors Theses

Fraud is a serious issue which carries significant implications. Fraud committed by top level managers is particularly grievous, as it ripples through a firm, harming the company’s shareholders, employees, and credibility, while posing a threat to individuals and society (Zahra, et al.). A common framework in auditing, the fraud triangle, outlines three factors that if present, increase the risk or enable fraud to occur. The three factors are incentive, opportunity, and rationalization to commit fraud (Barlow).

In 2018, the Securities and Exchange Commission (SEC) charged Elizabeth Holmes, founder and CEO of a supposedly groundbreaking health tech company, Theranos, with what …

Too Many Peas In A Pod? How Overlaps In Directors’ Local And Global Status Characteristics Influence Board Turnover In Newly Public Firms, Abhijith G. Acharya, Timothy G. Pollock

Research Collection Lee Kong Chian School Of Business

Drawing on status characteristics theory, we explore how boards’ social structures influence board turnover. We theorize that (1) understanding directors’ relative standing and spheres of influence in the local status hierarchy creates deference structures that reduce conflict and enhance stability, thereby reducing board turnover; and (2) shared performance expectations and attraction based on homophily in the global status hierarchy can also reduce conflict and enhance stability, and thus serve as another means of reducing board turnover. Using data on the five years following the initial public offerings (IPOs) of 218 firms that went public between 2001 and 2005, we find …

Navigating Corporate Social Responsibility, Benjamin Bates

Marriott Student Review

In this article, Ben Bates provides future business leaders with an introduction to the tools necessary to navigate difficult issues surrounding corporate social responsibility. HIs article outlines the two main theories on corporate social responsibility and discusses how business leaders can decide which theory to apply in a given situation.

You Can Run But You Can’T Hide: The Advance Of Shareholder Activism, Kendall Greenberg

CMC Senior Theses

Shareholder activism has exploded in popularity since the turn of the century, due in large part to impressive relative returns generated by its major participants. The result has thus been a surge in assets invested in the category, to in excess of $170 billion today up from less than $3 billion in 2000 (Inglis 2015; Romito 2015). This influx of capital, in absolute dollars and pace of growth, has caused many to wonder whether activists truly create shareholder value and, if so, if the value generated is sustainable. Numerous studies of activist interventions prior to 2009 reveal significant stock price …

Is Corporate Social Responsibility An Agency Problem?, Hao Liang, Luc Renneboog

Research Collection Lee Kong Chian School Of Business

This chapter examines whether CSR investments occur mostly in firms with severe agency problems, which suggests that CSR is an agency issue. We demonstrate that this is not the case: CSR investments and performance are higher when dividends are high, leverage is high, cash flows and cash holdings are low, and when there is a high managerial pay-for-performance sensitivity. All these variables combined represent managerial discipline in terms of corporate investing. We also document that better legal protection of shareholder rights is positively related to CSR performance. This implies that when shareholders are more powerful relative to the management, the …

Governance And Post-Repurchase Performance, Gary Caton, Jeremy Goh, Yen Teik Lee, Scott Linn

Research Collection Lee Kong Chian School Of Business

Payout policies based on share repurchase programs provide greater flexibility than do those based on cash dividends. We develop and test an empirical model in which strongly governed companies outperform weakly governed companies after announcing share repurchase programs. Our findings include positive associations between strong governance and both post-announcement adjusted operating performance and abnormal stock returns. The results are robust to sample selection bias, different sample criteria, governance measurement, and various control variables. In addition, governance strength is associated with larger post-announcement changes in CEO incentive compensation and merger and acquisition activity, both of which we argue are consistent with …

Governance Matter: Morningstar Stewardship Grades And Mutual Fund Performance, Jerry X. Cao, Aurobindo Ghosh, Jeremy Goh, Wee Seng Ng

Research Collection Lee Kong Chian School Of Business

Mutual fund investors have the arduous task of disentangling luck from ability of mutual fund managers’ performance. In this paper we investigate the role of mutual fund corporate governance (measured by Morningstar Stewardship grade) in mutual fund performance. We propose an objective data-driven corporate governance score based on principal components of Morningstar Stewardship Grades. Furthermore, we establish corporate governance scores have Granger Causality on long-term risk-adjusted returns. The findings suggest that corporate governance grades of mutual funds carry information content beyond the usual star rating measures for predicting long-term mutual fund performance and provide an effective tool for selecting funds.

Corporate Governance In An Era Of Compliance, Sean J. Griffith

William & Mary Law Review

Compliance is the new corporate governance. The compliance function is the means by which firms adapt behavior to legal, regulatory, and social norms. Formerly, this might have been conceived as a typical governance matter to be handled at the discretion of the board of directors. Compliance, however, does not fit traditional models of corporate governance. It does not come from the board of directors, state corporate law, or federal securities law. Compliance amounts instead to an internal governance structure imposed upon the firm from the outside by enforcement agents. This insight has important implications, both practical and theoretical, for corporate …

Communicating Corporate Social Responsibility In Singapore: Towards More Effective Media Relations, A. Pang, Angela Ka Ying Mak, Joanne M. H. Lee

Research Collection Lee Kong Chian School Of Business

Organizations face several impediments when it comes to communicating their corporate social responsibility (CSR) engagement to the public via the media. This paper examines practitioners’ and journalists’ perception of CSR communication using the agenda-building model (Qiu Q, Cameron GT, Communicating health disparities: building a supportive media agenda. VDM Verlag, Saarbruecken, 2008) by examining news coverage of how practitioners and journalists understand CSR, what types of CSR stories get covered in the media, and how are CSR stories portrayed in the media. News coverage of Singapore’s mainstream publications, The Straits Times, The Business Times, and The New Paper, were analyzed. The …

Shareholder Activism And Its Impact On Corporate Behavior; With Special Reference To Australian Ethical's Climate Advocacy Fund, Elias Springer

Independent Study Project (ISP) Collection

Given that the single driving force behind our current myopic markets is their pursuit of maximal profits, there is a dire need for increased shareholder activism to hold these corporations accountable for the social and environmental repercussions of their single-bottom line modus operandi. This study analyzes the effectiveness of shareholder activism as a tool for changing corporate behavior, and makes a more in-depth assessment of the extent to which Australian Ethical’s Climate Advocacy Fund impacts corporate behavior.

The data collected and analyzed from five interviews was used to supplement the data collected through literature review. Two interviews were conducted on …

Corporate Governance: Corporate Governance Worldwide, K R S Murthy

IIMB Management Review

No abstract provided.

Governing Corporate Governance, S Raghunath

IIMB Management Review

Interest in corporate governance has increased dramatically in recent months, spurred by the increased activism of regulatory bodies, the rise of the institutional investor, the takeover moves in the corporate world and the advent of investigative reporting in business journalism. The question is whether inherited governance structures and conventions remain appropriate and what can be done to make them effective. Problems arise because of ineffective governance and the myopic view of the market. Companies chronically underperform because management is too responsive to short term pressures to increase profits. Understanding what affects the quality of corporate governance requires a careful consideration …

Corporate Governance: Improving Accounting Practices, S Sundararajan

IIMB Management Review

Only a few fundamental ideas in the field of business management have stood the test of time and contributed to economic growth. The concept of a corporate form of organisation being akin to the democratic form of government is one such. The corporate structure is supported by management and corporate governance is all about ensuring that the management protects the interests of a number of stake holders. Providing reliable and relevant financial information about the corporate entity, thereby enabling different users to make sensible economic decisions, is one of the important tasks assigned to the management.