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Purpose: The authors investigate the role of gender in the way firms evaluate and resolve the ethical dilemma founded on the corporate social responsibility–corporate financial performance (CSR–CFP) nexus. This study is premised on Gilligan's "two voices" theory and the social role theory that there is a gender-based difference in moral thinking. Design/methodology/approach: The authors adopt the two-stage least squares (2SLS) and generalized method of moments (GMM) approach to control for simultaneity between female representation on boards, CSR and financial performance. The sample consists of 9,569 firm-year observations from 1,527 US firms for the period 1996–2014. Findings: The authors find that CSR initiatives and activities undertaken by US firms are profit maximizing. However, the return on investment in CSR decreases with the proportion of female directors on the board. This study underscores the importance of considering gender in furthering the understanding of how firms address the CSR–CFP nexus. Research limitations/implications: This research is not without limitations, which includes the way the authors operationalize CSR. The CSR scores from the MSCI ESG database have been criticized for being relatively weak predictors of actual CSR outcomes. Since the CSR–CFP nexus is likely to be far more complex than that portrayed by the KLD scores, the authors encourage future research to explore metrics of other social rating agencies which perhaps better capture the quality of a firm's CSR. Practical implications: In the face of the long and unresolved debate on the effect of gender diversity on the board's monitoring efficacy and decision- making process (Adams and Ferrera, 2009), the authors' finding that female directors' moral orientation and investment in CSR affect firms' bottom-line figures has important implications for shareholders and regulators, helping them to see how gender may play an important role in addressing this relationship. Originality/value: Although prior studies provide useful insights into the nexus between CSR and CFP, little is known whether gender affects this relation. This research provides empirical support for Gilligan's "two voices" theory that there is a gender-based difference in moral thinking. [ABSTRACT FROM AUTHOR]

Using a sample of publicly listed firm in Korea from 2002 to 2006, this article examines the impact of board monitoring on firm value and productivity. We use outsider's attendance of board meetings as a proxy for board monitoring. Consistent with the commitment hypothesis, we find that outsider's attendance rate increases firm value, suggesting that attending board meeting itself is a strong signal that reflects outsider's intention to monitor insiders. While ownership of controlling shareholders negatively affects firm value, this relationship is not moderated by increased monitoring by outsiders. Our findings provide further evidence that the outside director system is less effective in chaebol-affiliated firms. Results also indicate that the effect of outsider's board monitoring activity on investor's valuation of the firm is greater than on productivity improvement of the firm. Our conclusions are robust for possible endogeneity in the relationship between firm value and board attendance by outside directors. [ABSTRACT FROM AUTHOR]

We review accounting and finance research on corporate governance (CG). In the course of our review, we focus on a particularly vexing issue, namely endogeneity in the relationships between CG and other matters of concern to accounting and finance scholars, and suggest ways to deal with it. Given the advent of large commercial CG databases, we also stress the importance of how CG is measured and in particular, the construction of CG indices, which should be sensitive to local institutional arrangements, and the need to capture both internal and external aspects of governance. The 'stickiness' of CG characteristics provides an additional challenge to CG scholars. Better theory is required, for example, to explain whether various CG practices substitute for each other or are complements. While a multidisciplinary approach to developing better theory is never without its difficulties, it could enrich the current body of knowledge in CG. Despite the vastness of the existing CG literature, these issues do suggest a number of avenues for future research. [ABSTRACT FROM AUTHOR]

This study seeks to understand how dividend policy is related to ownership and control structure in Hong Kong, where family-controlled firms are widespread. Using data from a sample of 324 listed Hong Kong firms in 2005, our results show that a firm's propensity to pay dividends and the amount of payout decrease with divergence of the controlling shareholder's cash flow rights from control rights. Small to medium size family-controlled firms are significantly more likely to pay dividends and have higher dividend payouts than large family-controlled firms; however, this is moderated by the discrepancy between the controlling shareholder's cash flow rights and voting rights. This study provides empirical support for the expropriation hypothesis. Important academic implications include the need for a more accurate measure of potential expropriation and the need to control for firm size in tests of the relationship between payout policy and ownership structure and control. This study offers insights to policy makers interested in enhancing the legitimacy of corporate governance within their nation. In particular, it highlights that improvements in corporate governance will be most beneficial in smaller firms, where potential expropriation is greatest. [ABSTRACT FROM AUTHOR]