Stakeholder Relationship Capability and Investment Efficiency: A Mosaic Homology Theory Test

Subject Areas : Journal of Investment Knowledge

Maryam  Ghaed ¹ (1. PhD student, Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran)
Vali  Khodadadi ² (2. Invited Associate Professor, Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran / Department of Economic & Social Sciences, Shahid Chamran University, Ahvaz)
Alireza  jorjorzadeh ³ (3. Assistant Professor, Department of Economy, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran)
Ahmad  Kaabomeir ⁴ (4. Assistant Professor, Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran)

Received: 2020-06-09 Accepted : 2020-10-18 Published : 2023-06-22

Keywords: Investment Efficiency, Mosaic theory, Stakeholder relationship capability,

Abstract :

Considering the constraints on resources and the need for firms’ planning to avoid recession and underdevelopment, enhanced investment efficiency would promote the capital market attractiveness and increase the performance of capital market investment. Empowering these markets through investment efficiency requires to promote the flow of information disclosure to stakeholders in order to provide the greater coherence and integration of information, enhance equal decision-making capabilities, and promote trust and confidence in the company. The present study aimed to examine the impact of stakeholder relationship capability on investment efficiency through testing the mosaic theory. In this study, two criteria (namely the ratio of net fixed assets to total assets and investment level) were used in order to measure investment efficiency. Furthermore, meta-synthesis and Delphi analyses were adopted based on a 5-point Likert scale to measure the development of stakeholder relationship capability. To collect the research data, the questionnaires were sent to 142 companies in 2019, of which 112 questionnaires were returned by the managers of the firms listed in Tehran Stock Exchange. To fit and test the research hypothesis, the partial least squares analysis was used. After confirming the fit of the model, the results revealed that the stakeholder relationship capability had a positive and significant effect on investment efficiency. With regard to the Mosaic theory, this finding confirms that the equity of information in reflecting news and knowledge among stakeholders can promote the role of the firm's stakeholder relationship capability, thus enhancing the investment efficiency.

References:

ابطحی فروشانی، زینت السادات.، فرصتکار، احسان.، خوشنواپور، نادر.، ابطحی فروشانی، سیدتقی. (۱۳۹۴). تحلیل ذینفعان کلیدی با استفاده از ماتریس علاقه_قدرت (مطالعه موردی: طرح‌های توسعه میادین منطقه پارس‌جنوبی). ماهنامه علمی و ترویجی اکتشاف و تولید نفت و گاز، ۱۲(۱۲۷): ۳۲-۳۹

اخگر، محمدامید.، شانظری، نسرین. (1394). بررسی رابطه بین کیفیت گزارشگری مالی و عدم تقارن اطلاعاتی تحت شرایط متفاوت ریسکی و علاقه سرمایه گذاران، دانش حسابداری مالی، 2(2): 129-146

بادآورنهندی، یونس.، تقی‌زاده خانقاه، وحید. (1393). ارتباط بین برخی مکانیزم‌های حاکمیت شرکتی و کارآیی سرمایه‌گذاری در مراحل چرخة عمر، مجله علمی-پژوهشی دانش حسابداری، 5(18): 113-140.

برادران حسن‌زاده، رسول.، تقی‌زاده خانقاه، وحید. (1395). تأثیر هزینه‌های نمایندگی بر رفتار سرمایه‌گذاری، پژوهش‌های حسابداری مالی و حسابرسی، 8(32): 139-170.

ثقفی، علی.، بولو، قاسم.، محمدیان، محمد. (1391). کیفیت اطلاعات حسابداری، سرمایه‌گذاری بیش از حد و جریان‌ نقد آزاد، پیشرفت‌های حسابداری، 3(2): 37-63

ثقفی، فاطمه.، عباسی شاهکوه، کلثوم.، کشتگاری، احسان. (۱۳۹۳). طراحی چارچوب شناسایی و اولویت‌بندی ذینفعان مبتنی بر روش فراتلفیق، فصلنامه مدیریت فردا، سال سیزدهم، ۳۹(۲): ۲۱-۴۲.

حاجیها، زهره.، مرادیان، بهاره. (1393). بررسی تاثیر عدم تقارن اطلاعات و ارزش شرکت بر سرمایه‌گذاری در بورس اوراق بهادار تهران، دانش سرمایه‌گذاری، 3(12): 97-116.

حیاتی، منوچهر.، مشبکی‌اصفهانی، اصغر.، خورشیدی، عباس.، مرتضوی، مهدی. (۱۳۹۷). ارائه الگوی مدیریت تعامل با ذینفعان راهبردی بانک، پژوهش‌های مدیریت منابع سازمانی، ۸(۲): ۵۷-۷۲.

خدامی‌پور، احمد.، پناهی‌گنهرانی، رقیه. (1396). بررسی تأثیر محافظه‌کاری حسابداری بر کارایی سرمایه‌گذاری با لحاظ عدم‌‌‌تقارن اطلاعاتی، پژوهش های حسابداری مالی، 9(3): 91-110

داداش‌زاده، قادر.، حجازی، رضوان. (1399). ارزش انعطاف‌پذیری مالی، کارایی سرمایه‌گذاری و سرعت تعدیل سرمایه درگردش، راهبرد مدیریت مالی، 8(1): 177-196

صفری‌گرایلی، مهدی.، رعنایی، فاطمه. (1396). بررسی ارتباط بین کیفیت‌گزارشگری مالی با کارایی سرمایه‌گذاری و تأثیر ساختار سررسید بدهی‌ها بر این رابطه، مدیریت دارایی و تأمین مالی، 5(1): 83-98

گل‌محمدی، مجتبی.، پورحیدری، امید.، بهارمقدم، مهدی. (1396). بررسی تأثیر مدیریت ذینفعان بر سود تقسیمی و ارزش شرکت، بررسی‏‌های حسابداری و حسابرسی، 24(3)، 394- 371.

نجفیان، خدیجه.، صفری‌گرایلی، مهدی. (1396). معاملات با اشخاص وابسته و قابلیت مقایسه صورت‌های مالی: آزمون تجربی نظریه تضاد منافع. حسابداری مدیریت، 10(35): 77-90.

نیک‌کار، جواد. (1398). تاثیر رقابت بازار محصول بر کارایی سرمایه‌گذاری در شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران، مطالعات حسابداری و حسابرسی، 8(29): 71-88.

Al Sakini, A. (2019). The Impact of Disclosure of the Financial Statements at the Level of Information Asymmetry between Investors: An Empirical Study on the Commercial Banks in Jordan, Academy of Accounting and Financial Studies Journal, 23(6): 103-123.

Balmer, J. (2017). The corporate identity, total corporate communications, stakeholders’ attributed identities, identifications and behaviors continuum, European Journal of Marketing, 51(9/10): 1472-1502. https://doi.org/10.1108/EJM-07-2017-0448

Barnett, M, L. (2007). Stakeholder Influence Capacity and the Variability of Financial Returns to Corporate Social Responsibility, the Academy of Management Review, 32(3): 794-816.

Beatty, A., Weber, J., Scott, J. (2007). The Role of Accounting Quality in Reducing Investment Inefficiency in the Presence of Private Information and Direct Monitoring. Working paper, The Ohio State University

Bridoux, F., & Stoelhorst, J. W. (2014). Micro-foundations for stakeholder theory: Managing stakeholders with heterogeneous motives, Strategic Management Journal, 35(1): 107–125

Chen, F., Hope, O, K., Li, Q., Wang, X. (2011^b). Financial Reporting Quality and Investment Efficiency of Private Firms in Emerging Markets. The Accounting Review, 86(4): 1255-1288. https://doi.org/10.2308/accr-10040

Chen, F., Hope, O., Li, Q., Wang, X. (2011^a). Financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48(2-3):112-131

Cheynel, E., Levine, C, B. (2020). Public Disclosures and Information Asymmetry: A Theory of the Mosaic. The Accounting Review, 95(1): 79-99. https://doi.org/10.2308/accr-52447

Davidowitz, A. (2015). Abandoning the ‘mosaic theory’: Why the ‘mosaic theory’ of securities analysis constitutes illegal insider trading and what to do about it. Washington University Journal of Law & Policy 46(1): 281–303

De Franco, G., Kothari, S, P., Verdi, R, S. (2011). The benefits of financial statement comparability, Journal of Accounting Research, 49(2): 895-931.

Degryse, H., De Jong, A. (2001). Investment Spending in the Netherlands: Asymmetric Information or Managerial Discretion? Working Paper, Erasmus University Rotterdam.

Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.

Gao, J., Slawinski, N. (2015). The Impact of Stakeholder Management on Corporate International Diversification, Business and Society Review, 120(3): 409-433. https://doi.org/10.1111/basr.12061

Goodman, T. H., Shroff, N., Neamtiu, M., White, H. D. (2014). Management Forecast Quality and Capital Investment Decisions. The Accounting Review, 89, 331-365

Gray, R., Owen, D., Afams, C. (1996). Accounting and accountability: Change and challenges in corporate social and environmental reporting, London: Prentice Hall.

Guttman, I., Meng, X. (2020). The Effect of Voluntary Disclosure on Investment Inefficiency, The Accounting Review In-Press, https://doi.org/10.2308/tar-2018-0749

Herremans, I. M., Nazari, J. A., & Mahmoudian, F. (2016). Stakeholder relationships, engagement, and sustainability reporting. Journal of Business Ethics, 138(3), 417–435.

Jensen, M, C. (1986). Agency Costs of Free Cash Flow, Corporate Finance and Takeovers, The American Economic Review, 76(2): 323-329

Jiang, G., Lee, C, M, C., Yue, H. (2010). Tunneling Through Intercorporate Loans: The China Experience”. Journal of Financial Economics, 98(3): 1-20.

Jiang, W., Wang, A, X., Zhou, K, Zh., Zhang, Ch. (2019). Stakeholder Relationship Capability and Firm Innovation: A Contingent Analysis, Journal of Business Ethics, https://doi.org/10.1007/s10551-019-04161-4

Jones, T. M., Harrison, J. S., & Felps, W. (2018). How applying instrumental stakeholder theory can provide sustainable competitive advantage. Academy of Management Review, 43(3), 371–391.

Kothari, S. P., Ramanna, K., & Skinner, D. J. (2010). Implications for GAAP from an analysis of positive research in accounting. Journal of Accounting and Economics, 50 (2-3): 246–286.

Kumar, V., Rahman, Z. and Kazmi, A. (2016). Stakeholder identification and classification: a sustainability marketing perspective, Management Research Review, 39(1): 35-61. https://doi.org/10.1108/MRR-09-2013-0224

Lai, Sh, M., Liu, Ch, L., Wang, T. (2012). Increased disclosure and investment efficiency, Asia-Pacific Journal of Accounting & Economics, 21(3): 33-69. https://doi.org/10.1080/16081625.2012.741791

Landry, R., Amara, N., Lamari, M. (2002). Does social capital determine innovation? To what extent? Technological Forecasting and Social Change, 69, 681-701.

Lee, T., Fin, M. (2018). The Link between Information Transparency and Investment Efficiency: A Literature Review, Business and Economic Research, 8(4): 71-79. https://doi.org.10.5296/ber.v8i4.13897

Li, Y., He, J., Xiao, M. (2018). Risk Disclosure in Annual Reports and Corporate Investment Efficiency, International Review of Economics and Finance, 12(4): 333-351. https://doi.org/10.1016/j.iref.2018.08.021

Loi, T. (2016). Stakeholder management: a case of its related capability and performance, Management Decision, 54(1): 148-173. https://doi.org/10.1108/MD-06-2015-0244

Martin, M, V., Reinhardt, R., Gurtner, S. (2016). Stakeholder integration in new product development: a systematic analysis of drivers and firm capabilities, 46(3): 1095-1112.

McNichols, M., & Stubben, S. R. (2008). Does earnings management affect firms’ investment decisions? The Accounting Review, 83(6): 1571–1603

Mitchell, R., Agle, B., Wood, D. (1997). Toward a theory of stakeholder identification and salience: Defining the principles of who and what really counts, Academy of Management Review, 22: 55-886

Myers, S., Majluf, N. (1984). Corporate Financing and Investment Decisions When Firms Have Information That Investors Do not Have, Journal of Financial Economics, 13(1): 187-221

Page, I, H. (1976). The mosaic theory of arterial hypertension–its interpretation. Perspect Biol Med, 10(3):325–33.

Parmar, B. L., Freeman, R. E., Harrison, J. S., Wicks, A. C., de Colle, S., & Purnell, L. (2010). Stakeholder theory: The state of the art. Academy of Management Annals, 4(1), 403–445.

Romijn, H., Albaladejo, M. (2002). Determinants of innovation capability in small electronics and software firms in southeast England. Research Policy, 31, 1053-1067

Rueda-Manzanares, A., Aragn-Correa, J. A., & Sharma, S. (2008). The influence of stakeholders on the environmental strategy of service firms: The moderating effects of complexity, uncertainty and munificence. British Journal of Management, 19(2): 185–203.

Sharma, S., & Henriques, I. (2005). Stakeholder influences on sustainability practices in the Canadian forest products industry. Strategic Management Journal, 26(2): 159–180.

Verbeke, A., & Tung, V. (2013). The future of stakeholder management theory: A temporal perspective. Journal of Business Ethics, 112(3): 529–543.

Veronica, S., Alexeis, G, P., Valentina, C., Elisa, G. (2019). Do stakeholder capabilities promote sustainable business innovation in small and medium-sized enterprises? Evidence from Italy, Journal of Business Research, https://doi.org/10.1016/j.jbusres.2019.06.025

Wagner Mainardes, E., Alves, H., Raposo, M. (2011). Stakeholder theory: issues to resolve, Management Decision, 49(2): 226-252. https://doi.org/10.1108/00251741111109133

Wang, H, M., Sengupta, S. (2016). Stakeholder relationships, brand equity, firm performance: A resource-based perspective, Journal of Business Research, 2(3): 1-8. http://dx.doi.org/10.1016/j.jbusres.2016.05.009

Watson, R., Wilson, H, N., Smart, P., Macdonald, E, K. (2017). Harnessing Difference: A Capability‐Based Framework for Stakeholder Engagement in Environmental Innovation, 35(2): 254-279.

Yang, D., Jiang, W., Zhao, W. (2019). Proactive environmental strategy, innovation capability, and stakeholder integration capability: A mediation analysis, https://doi.org/10.1002/bse.2329