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Company receptivity in private dialogue on sustainability risks
Linnaeus University, School of Business and Economics, Department of Management Accounting and Logistics.ORCID iD: 0000-0001-9670-5942
2020 (English)In: Sustainability, E-ISSN 2071-1050, Vol. 12, no 2, p. 1-14, article id 532Article in journal (Refereed) Published
Abstract [en]

This study examines empirically the efficiency of private collaborative dialogues between Nordic institutional investors and companies included in the MSCI (Morgan Stanley Capital International) World stock market index. It contributes to an understanding of the conditions that allow active institutional investors to elect to work with more receptive and progressive companies and improve the efficiency of private engagement and dialogue. Stakeholder silence theory and Gond et al.’s model of company perceptions of enablers and barriers to the success of engagement are introduced to analyse the efficiency of private dialogue. The study investigates a proprietary dataset covering the characteristics of 109 complete dialogue processes related to material environmental, social, and corruption issues. The dialogues are led by a professional engagement agent in collaboration with its Nordic clients. The multivariate regression analysis shows that sustainability risk, bureaucracy, and experience are the specific conditions under which the target company can become more receptive to activism by making more progress to address institutional investors’ requests during the hidden dialogue process.

Place, publisher, year, edition, pages
MDPI, 2020. Vol. 12, no 2, p. 1-14, article id 532
Keywords [en]
Sustainability risks, Investor activism, Private dialogue, Engagement, Efficiency
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
URN: urn:nbn:se:lnu:diva-90856DOI: 10.3390/su12020532ISI: 000516824600090Scopus ID: 2-s2.0-85079683037OAI: oai:DiVA.org:lnu-90856DiVA, id: diva2:1384814
Available from: 2020-01-10 Created: 2020-01-10 Last updated: 2022-02-10Bibliographically approved

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Semenova, Natalia

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  • apa
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  • de-DE
  • en-GB
  • en-US
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  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
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  • asciidoc
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