"Governance Implications Of The Effects Of Stakeholder Management On Fi" by James E. Mattingly, Steven A. Harrast et al.
 

Faculty Publications

Governance Implications Of The Effects Of Stakeholder Management On Financial Reporting

Document Type

Article

Keywords

Business Performance, Corporate governance, Corporate responsibility, Earnings, Stakeholder analysis

Journal/Book/Conference Title

Corporate Governance

Volume

9

Issue

3

First Page

271

Last Page

282

Abstract

Purpose: The purpose of this paper is to test whether effective stakeholder management results in transparent financial reporting. Design/methodology/approach: This paper uses a linear model informed by stakeholder theorizing and established measures of stakeholder management, earnings quality, and earnings management. Findings: Organizations exhibiting effective stakeholder management have higher earnings quality and are less likely to engage in discretionary earnings management. Research implications: Future research should carefully sort out the meaning of different measures of earnings quality, should clarify cross-national institutional differences to reconcile contradictions in extant research, and should discover the underlying governance orientations that shape decision-making processes and outcomes. Practical implications: Governing bodies must take into account how underlying organization cultures shape governance regimes, which may determine the transparency with which organization actors interact with various stakeholder groups. Originality/value: This study establishes a positive link between effective stakeholder management and transparent financial reporting, suggesting that both may be artifacts of deeper underlying orientations toward accountability, transparency, and managerial discretion. © Emerald Group Publishing Limited.

Department

Department of Management

Original Publication Date

6-12-2009

DOI of published version

10.1108/14720700910964334

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