The debate around corporate purpose in the modern economic system has gained considerable momentum in the last decade, and the growing awareness of the social role played by firms has triggered an urgent call to pursue purpose-driven strategies (PDSs), i.e., strategies aimed at satisfying one or more societal needs other than profit maximization. Since the board of directors plays a key role in defining the corporate purpose and supporting decision-making in the definition of strategies, it is fair to assume that the characteristics of the board can impact the adoption of PDSs. However, the relationship between the board and PDSs has not yet been examined. Our study aims to fill this gap by investigating whether and which specific board characteristics influence the adoption of PDSs. To this end, we employed propensity score matching and logistic regression methods to analyze a sample of 580 European firms. Results show that board independence, network size, gender diversity, and education positively affect the adoption of PDSs, while the impact of directors’ age and board tenure is negative. In addition to contributing to research by connecting the board literature with the corporate purpose literature, our results provide practical implications for directors and investors.
Do Board Characteristics Affect the Adoption of Purpose-Driven Strategies? Evidence from EU firms / Collevecchio, Francesca; Gionfriddo, Gianluca. - ELETTRONICO. - 2022:(2022). (Intervento presentato al convegno 82nd Annual Meeting of the Academy of Management tenutosi a Seattle nel 05-09/08/2022) [10.5465/AMBPP.2022.16848abstract].
Do Board Characteristics Affect the Adoption of Purpose-Driven Strategies? Evidence from EU firms
Francesca Collevecchio;
2022-01-01
Abstract
The debate around corporate purpose in the modern economic system has gained considerable momentum in the last decade, and the growing awareness of the social role played by firms has triggered an urgent call to pursue purpose-driven strategies (PDSs), i.e., strategies aimed at satisfying one or more societal needs other than profit maximization. Since the board of directors plays a key role in defining the corporate purpose and supporting decision-making in the definition of strategies, it is fair to assume that the characteristics of the board can impact the adoption of PDSs. However, the relationship between the board and PDSs has not yet been examined. Our study aims to fill this gap by investigating whether and which specific board characteristics influence the adoption of PDSs. To this end, we employed propensity score matching and logistic regression methods to analyze a sample of 580 European firms. Results show that board independence, network size, gender diversity, and education positively affect the adoption of PDSs, while the impact of directors’ age and board tenure is negative. In addition to contributing to research by connecting the board literature with the corporate purpose literature, our results provide practical implications for directors and investors.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
