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How Emphasizing ESG Affects Firm Value

Reynolds Holding

In a new article, we offer novel insights into the conundrum of ESG emphasis and present a conceptual framework for exploring the impacts on firm value of emphasizing both nonmaterial and material ESG factors. This unexpected negative impact on firm value surpasses the positive impact of material ESG emphasis by a factor of 2.12.

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How Board Gender Diversity Affects the Relation between CSR and Firm Value

Reynolds Holding

Research shows that socially responsible activities enhance firm value while irresponsible social activities destroy value and that firms with more women directors tend to do better on social and environmental issues.

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Does Mandatory Board Gender Balancing Reduce Firm Value?

Reynolds Holding

As a social-policy instrument, forced board-gender balancing is in principle unrelated to firms’ economic performance. Nonetheless, imposing such a policy may have unintended consequences (positive or negative) for firm value, which is important for all of a firm’s constituencies – not only shareholders – to understand properly.

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The Emergence of Welfarist Corporate Governance

Harvard Corporate Governance

Portfolio welfarism starts from the observation that shareholders’ economic interest lies in maximizing portfolio value not firm value. Shareholder welfarism resembles portfolio welfarism in that both, while accepting the primacy of shareholder interests, give weight to shareholder interests other than firm value.

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The Irrelevance of Delaware Corporate Law

Harvard Corporate Governance

Efficient laws should enhance firm value. If so, under the generally accepted measure of quality (efficiency and firm value), corporate law would be irrelevant. Is Delaware corporate law relevant? Relevance is a relational concept. Relevant to what? Rules of corporate law are considered in efficiency’s light.

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Delegated Gender Diversity

Harvard Corporate Governance

The literature provides mixed evidence on the impact of female board representation on firm value. The skillset view holds that female directors have unique skills and risk appetites that complement the skillsets of male directors, resulting in a diversity premium and higher firm value.

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Do Individual Directors Matter?

Reynolds Holding

A fundamental question in corporate governance research is whether the board of directors affects firm value. Some argue that directors contribute no additional value to the firm and may even lower its value if they act only as a rubber stamp on the CEO’s decisions. percent of variation in DSQ.