Paragons or Parasites Revisited: Business Group Reputational Concerns and Non-financial Performance

SITE (Science, Innovation, Technology, and Entrepreneurship)

Speaker:Dr Vlad Porumb , The University of Groningen
Date: Wednesday 22 May 2019
Time: 10.30
Location: Streatham Court B

Further details


Recent business group (BG) research suggests that performance effects observed from group affiliation partially stem from reputational drivers. However, in focusing only on financial metrics, these studies are limited in considering how reputational concern itself can vary. In response, we propose that BG reputational concern can be assessed through examining nonfinancial performance. We study the effects of affiliation and BG characteristics on Corporate Social Performance (CSP), a non-financial performance metric. Our findings suggest that BG affiliation positively impacts CSP – especially in countries with less-developed market
institutions – indicating reputational concern. However, group characteristics like increased hierarchy and diversification (indicating lesser concern with reputation), have a negative effect on this relationship. Our study thus complements recent BG discussions, highlighting how nonfinancial performance captures variation in reputational concern.