Great Expectations: Institutional Logics and the Evaluation of Corporate Social Responsibility

41 Pages Posted: 30 Jan 2022 Last revised: 17 Apr 2023

See all articles by Pavlos A. Vlachos

Pavlos A. Vlachos

Alba Graduate Business School,The American College of Greece

Panagiotis Avramidis

Alba Graduate Business School, The American College of Greece

Michael Lounsbury

University of Alberta - Department of Strategic Management and Organization

Christos Koritos

affiliation not provided to SSRN

Date Written: January 26, 2022

Abstract

Drawing on a neo-institutional theory perspective that emphasizes the isomorphic diffusion of practices, some research argues that there is a shift from an agency to a stakeholder logic in financial markets and in financial analysts in particular. Drawing on the institutional complexity literature and the logics perspective, we extend this research by providing arguments and evidence showing that while the stakeholder logic is certainly becoming more pervasive, it may not be replacing or even weakening the agency logic. In fact, our research suggests that the stakeholder and agency logics co-exist, and under certain conditions, may even be complementary. This complementarity depends on whether firms embrace corporate governance safeguards. Also, our theory on the critical role of institutional logics in shaping analysts’ disagreement is further supported by firm efforts to actively conform to those preferences using impression management tactics. Following higher analysts’ disagreement, firms committed to the stakeholder logic (but not committed to the agency logic) are more likely to use impression management practices signaling to analysts’ commitment to the agency logic, which, however, fail to affect analysts.

Keywords: Agency Logic, Financial Analysts, Institutional Complexity; Institutional Logics Perspective, Stakeholder Logic, Impression Management

JEL Classification: M14

Suggested Citation

Vlachos, Pavlos A. and Avramidis, Panagiotis and Lounsbury, Michael and Koritos, Christos, Great Expectations: Institutional Logics and the Evaluation of Corporate Social Responsibility (January 26, 2022). Available at SSRN: https://ssrn.com/abstract=4018516 or http://dx.doi.org/10.2139/ssrn.4018516

Pavlos A. Vlachos (Contact Author)

Alba Graduate Business School,The American College of Greece ( email )

6-8, Xenias str., Ampelokipoi
Athens, 115 28
Greece

HOME PAGE: http://www.alba.acg.edu

Panagiotis Avramidis

Alba Graduate Business School, The American College of Greece ( email )

Xenias 6-8
Athens, Athens 11528
Greece

Michael Lounsbury

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

Christos Koritos

affiliation not provided to SSRN

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