Value Relevance of Stakeholder Engagement: The Influence of National Culture

Corporate Social Responsibility and Environmental Management, Forthcoming

Posted: 20 Jun 2016 Last revised: 16 Jul 2016

See all articles by Lorenzo Dal Maso

Lorenzo Dal Maso

affiliation not provided to SSRN

Giovanni Liberatore

University of Florence - Department of Business Economics

Francesco Mazzi

University of Florence - Department of Business Economics

Date Written: July 13, 2016

Abstract

Our study investigates whether stakeholder engagement is associated with a firm’s valuation and the value relevance of accounting earnings. Since prior literature posits that the economic consequences of such practices may depend on the specific environment in which they are adopted, we also explore whether these associations are affected by the cultural traits of the country in which a firm operates. Based on a worldwide sample of firms for the period 2002 to 2014, we document that stakeholder engagement positively influences market-to-book value of equity, without enhancing the value relevance of firm’s accounting earnings. Drawing on Schwartz’s (2008) cultural framework, we show that the results hold only in countries with a low (high) level of embeddedness and hierarchy (mastery). Our study contributes to the literature exploring the economic consequences of non-financial information and the importance of institutional characteristics for economic outcomes.

Keywords: stakeholder engagement, value relevance, culture, cultural environment, national influence, embeddedness, hierarchy, mastery

Suggested Citation

Dal Maso, Lorenzo and Liberatore, Giovanni and Mazzi, Francesco, Value Relevance of Stakeholder Engagement: The Influence of National Culture (July 13, 2016). Corporate Social Responsibility and Environmental Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2798008

Lorenzo Dal Maso (Contact Author)

affiliation not provided to SSRN

Giovanni Liberatore

University of Florence - Department of Business Economics ( email )

Via delle Pandette 9
Florence, Florence 50132
Italy
0039 055 4374684 (Phone)
0039 055 4374910 (Fax)

Francesco Mazzi

University of Florence - Department of Business Economics ( email )

Via delle Pandette 9
Florence, Florence 50132
Italy
0039 055 4374684 (Phone)
0039 055 4374910 (Fax)

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