Importance of Environment, Social, and Governance (ESG) Investment

Global Corporate Governance Take-Home Exam/Essay Topics (50%) 

This is a research essay.  Please select ONE of the following topics. Since there are a huge number of articles on each topic, I have suggested some of the relevant articles here (in addition to the lecture reading materials) but further research is definitely needed. 

Essay Topics: 

1. Family Ownership 

2. Gender Diversity in Australia 

3. Directors’ Backgrounds and Governance Efficiency 

4. Corporate Social Responsibility 

Topic 1: Family Ownership  How common is family ownership in today’s world (20%)? Is family ownership more beneficial or detrimental for minority shareholders (80%)?  Related references:  Anderson, R. C. & Reeb, D. M. (2003) Founding-Family Ownership and Firm Performance: Evidence from the S&P 500. Journal of Finance, 58(3), 1301-1328.  Claessens S, Djankov S, Lang LHP. (2000) The Separation of Ownership and Control in East Asian Corporations. Journal of Financial Economics, 58(1,2): 81-112.  Cuervo-Cazurra, A. (2006) Business Groups and Their Types. Asia Pacific Journal of Management, 23, 419-437.  Gomez-Mejia LR, Makri M, Kintana ML. (2010) Diversification Decisions in Family- Controlled Firms. Journal of Management Studies, 47(2): 223-252.  Pedersen, T. & Thomsen, S. (2003) Ownership Structure and Value of the Largest European Firms: The Importance of Owner Identity. Journal of Management and Governance, 1(1), 27-55.  Schulze WS, Lubatkin MH, Dino R, & Buchholtz AK. (2001) Agency Relationships in Family Firms: Theory and evidence. Organization Science, 12: 99-116.     

Topic 2: Board of Directors: Gender Diversity in Australia  Examine the development and practices of gender diversity in the boardrooms of large (e.g., ASX100 or ASX 200) and medium-to-small publicly listed companies in Australia. What are the issues these organisations face in balancing gender diversity in the boardroom, and what are the possible recommendations for future development/improvement?  • First part: Background information on gender diversity in the boardroom in Australian listed companies (30%);  • Second part: The development, issues and challenges of balancing gender diversity in these organisations (40%);  • Third part: Recommendations for future development in these organisations (30%).  Related references:  Adams, Renée, & Daniel Ferreira. (2009) Women in the Boardroom and Their Impact on Governance and Performance. Journal of Financial Economics, 94(2): 291–309.  Brammer, S. Millington, A. & Pavelin, S. (2009) Corporate Reputation and Women on the Board. British Journal of Management, 20(1): 17-29.  Carter, D. A., Simkins, B. J. & Simpson, W. G. (2003) Corporate Governance, Board Diversity, and Firm Value. Financial Review, 38: 33-53.  Erhardt, N.L., Werbel, J.D. & Shrader, C.B. (2003) Board of Director Diversity and Firm Financial Performance. Corporate Governance: An International Review, 11(2), 102-111.  Hu, H.W. & Ali, P. (2013) Board Committees and IPO Survival: An Empirical Analysis. Company and Securities Law Journal (ABDC - A), 31: 49-55.  Hu, H.W. & Tan, M.G. (2012) Corporate Governance and Initial Public Offering in Australia, In Corporate Governance and Initial Public Offerings (eds., Zattoni, A. & Judge, W.), 37-63, New York: Cambridge University Press.  Jin, R., Jiang, X., & Hu, H.W. (online) Internal and external CSR in China: How do women independent directors matter? Asia Pacific Journal of Management, DOI: 10.1007/s10490-02109783.  Kang, H., Cheng, M. & S.J. Gray (2007) Corporate Governance and. Board Composition: Diversity and Independence of Australian. Boards. Corporate Governance: An International Review, 15 (2) 194-207.  Yoshikawa, T. & Hu, H.W. (2017) Organizational Citizenship Behaviors of Directors: An Integrated Framework of Director Role-identity and Boardroom Structure. Journal of Business Ethics, 143(1), 99-109.  

Topic 3: Directors’ Backgrounds and Governance Efficiency  Whether and how directors’ different backgrounds affect boards’ governance quality (100%)? Discuss and explain your view.  • First part: The roles and responsibilities of boards of directors (15%);  • Second part: The governance characteristics of the different types of director backgrounds (e.g., academic background, finance/accounting background, political background) (50%);  • Third part: The relationship between different types of director backgrounds (e.g., academic background, finance/accounting background, political background) and their boards’ performance and governance efficiency (35%).  Related references: Boivie, S., Withers, M. C., Graffin, S. D., & Corley, K. G. (2021). Corporate directors’ implicit theories of the roles and duties of boards. Strategic Management Journal, 42(9), 1662-1695.  Bonini, S., Deng, J., Ferrari, M., John, K., & Ross, D. G. (2022). Long‐tenured independent directors and firm performance. Strategic Management Journal, 43(8), 1602-1634.  Forbes, D. P., & Milliken, F. J. (1999). Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of management review, 24(3), 489-505.  Hillman, A. J., & Dalziel, T. (2003). Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management review, 28(3), 383-396.  Li, S., Quan, Y., Tian, G. G., Wang, K. T., & Wu, S. H. (2021). Academy fellow independent directors and innovation. Asia Pacific Journal of Management, 1-46.  Marra, A. (2021). All that glitters is not gold! Independent directors’ attributes and earnings quality: Beyond formal independence. Corporate Governance: An International Review, 29(6), 567-592.  Rutherford, M. A., Buchholtz, A. K., & Brown, J. A. (2007). Examining the relationships between monitoring and incentives in corporate governance. Journal of Management Studies, 44(3), 414-430.  Xiang, R., & Zhu, W. (2023). Academic independent directors and corporate fraud: evidence from China. Asia-Pacific Journal of Accounting & Economics, 30(2), 285-303.   

Topic 4: Corporate Social Responsibility (CSR)  Discuss the importance of environment, social, and governance (ESG) investment (40%). How does ESG investment strengthen firms’ CSR engagement (60%)?  Related references: Cheng, B., Ioannou, I., & Serafeim, G. (2014) Corporate Social Responsibility and Access to Finance. Strategic Management Journal, 35, 1-23.  Garriga, E. & Melé, D. (2004) Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53, 51-71.  Giese, G., Lee, L.-E., Melas, D., Nagy, Z., & Nishikawa, L. (2019) Foundations of ESG Investing: How ESG Affects Equity Valuation, Risk, and Performance. Journal of Portfolio Management, 45(5), 69-83.  Hawn, O., Chatterjee, A., & Mitchell, M. L. (2018) Doe Investors Actually Value Sustainability? New Evidence From Investor Reactions to the Dow Jones Sustainability Index (DJSI). Strategic Management Journal, 39(4): 949-976.  Ioannou, I., & Serafeim, G. (2012) What Drives Corporate Social Performance? The Role of Nation-level Institutions. Journal of International Business Studies, 43, 834-864.  Lockett, A., Moon, J. & Visser, W. (2006) Corporate Social Responsibility in Management Research: Focus, Nature, Salience and Sources of Influence. Journal of Management Studies, 43(1), 115-136. Marquis C, Lee M, (2015) Who Is Governing Whom? Executives, Governance, and the Structure of Generosity in Large U.S. firms. Strategic Management Journal, 34: 483-497.  McWilliams, A. & Siegel, D. S. (2001) Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review, 26, 117-127.  Mitchell, R.K., Agle, B.R., & Wood, D.J. (1997) Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. Academy of Management Review, 22: 853-886.  For all topics: Additional journals to visit:  Corporate Governance: An International Review; Academy Management Journal; Journal of Business Ethics, among others