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

• 成果类型: Article
• 署名作者: Wang, Stephanie Lu; Li, Dan
• 署名单位: Indiana University System; IU Kelley School of Business; Indiana University Bloomington
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00224-w
• 发表日期: 2019
• 页码: 1283-1309
• 关键词: Corporate social irresponsibility; reputation; foreign subsidiary governance; Internalization theory; firm-specific advantage; information control; ownership control; host-country press freedom; host-country regulatory quality

摘要

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 host-country characteristics - press freedom and regulatory quality - amplify the need for MNCs to utilize different governance mechanisms as responses to CSI disclosure.