Revealed and reserved: a compensating approach of voluntary disclosure by family multinationals

• 成果类型: Article
• 署名作者: Gu, Qian (Cecilia); Wang, Stephanie Lu; Bai, Tao
• 署名单位: University System of Georgia; Georgia State University; Indiana University System; Indiana University Bloomington; IU Kelley School of Business; University of Queensland
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-024-00695-6
• 发表日期: 2024
• 页码: 914-933
• 关键词: Family multinational enterprise; Voluntary information discourse; Duality; stakeholder management; Response to institutional pressure; Transparency pressure; emerging market

摘要

Family-owned MNEs (FMNEs) face unique challenges for their newly established foreign subsidiaries due to the information asymmetry and divergent demands between the controlling families and external stakeholders. Despite the significant theoretical and managerial implications, there has been a notable research gap in understanding how FMNEs strategically disclose information to overcome these challenges. Drawing from literature on firms' stakeholder management and responses to institutional pressure, we propose that FMNEs seek a compensating approach to reconcile various stakeholders' divergent needs, mitigate information asymmetry, and enhance legitimacy. The compensating approach encompasses both the content and amount of information disclosed. Specifically, FMNEs selectively conceal information sensitive to socioemotional wealth (SEW) to protect the core interests of the controlling families. Simultaneously, they voluntarily disclose more information to signal professionalization to external stakeholders, alleviating concerns associated with higher family involvement. We further argue that transparency pressure in FMNEs' home context amplifies their utilization of compensating information disclosure. Our arguments are generally supported by analyzing 850 newly established foreign subsidiaries from both FMNEs and non-FMNEs between 2010 and 2017.