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Responding to public disclosure of corporate social irresponsibility in host countries: Information control and ownership control

Journal of international business studies, 2019-10, Vol.50 (8), p.1283-1309 [Peer Reviewed Journal]

2019 Academy of International Business ;Academy of International Business 2019 ;2019© Academy of International Business 2019 ;ISSN: 0047-2506 ;EISSN: 1478-6990 ;DOI: 10.1057/s41267-019-00224-w

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  • Title:
    Responding to public disclosure of corporate social irresponsibility in host countries: Information control and ownership control
  • Author: Wang, Stephanie Lu ; Li, Dan
  • Subjects: Business and Management ; Business Strategy/Leadership ; Disclosure ; Foreign subsidiaries ; Freedom of the press ; Governance ; Information control ; Internalization ; International Business ; Management ; Organization ; Ownership ; Reputations
  • Is Part Of: Journal of international business studies, 2019-10, Vol.50 (8), p.1283-1309
  • Description: We extend the internalization literature by theorizing on how public disclosure of corporate social irresponsibility (CSI) can damage reputation-based firm-specific advantages of multinational companies (MNCs) and how foreign subsidiary governance can subsequently be used as strategic responses. Specifically, we distinguish between two foreign subsidiary governance mechanisms – information control and ownership control – that the prior literature has often assumed operate in parallel, and posit that they function in divergent directions in this context. Furthermore, we explain how two hostcountry characteristics–press freedom and regulatory quality – amplify the need for MNCs to utilize different governance mechanisms as responses to CSI disclosure.
  • Publisher: London: Springer Science + Business Media
  • Language: English
  • Identifier: ISSN: 0047-2506
    EISSN: 1478-6990
    DOI: 10.1057/s41267-019-00224-w
  • Source: ProQuest Central
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