Economics at your fingertips  

Value Relevance of Stakeholder Engagement: The Influence of National Culture

Lorenzo Dal Maso, Giovanni Liberatore and Francesco Mazzi

Corporate Social Responsibility and Environmental Management, 2017, vol. 24, issue 1, 44-56

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 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. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Corporate Social Responsibility and Environmental Management from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-09-04
Handle: RePEc:wly:corsem:v:24:y:2017:i:1:p:44-56