Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5107188 | Journal of World Business | 2016 | 14 Pages |
Abstract
We propose that cross-listing is associated with better environmental, social, and governance (ESG) performance, because cross-listed firms adopt ESG practices to mitigate the liability of foreignness (LOF) in foreign financial markets. Institutionalization processes have made ESG practices important for managing challenges associated with the LOF. With tests involving the S&P Global 1200 index, we show that cross-listing improves corporate social responsibility (CSR; i.e., social and environmental dimensions) but not corporate governance. The effects of cross-listing on CSR also depend on investor protection regimes of listing destinations: Stronger regimes correspond with poorer CSR performance, suggesting that they limit managerial discretion.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Barbara Del Bosco, Nicola Misani,