How firms respond to mandatory information disclosure

Strategic Management Journal

Volumn 34, Issue 10, 2013, Pages 1209-1231

  Doshi, Anil R ^a   Dowell, Glen W S ^b   Toffel, Michael W ^a  

^a HARVARD BUSINESS SCHOOL   (United States)

^b The Samuel Curtis Johnson Graduate School of Management   (United States)

Author keywords

environmental performance; environmental strategy; information disclosure; institutional theory; mandatory disclosure; regulation

Indexed keywords

ENVIRONMENTAL PERFORMANCE; ENVIRONMENTAL STRATEGY; INFORMATION DISCLOSURE; INSTITUTIONAL THEORY; MANDATORY DISCLOSURE; REGULATION;

ENVIRONMENTAL MANAGEMENT; ENVIRONMENTAL REGULATIONS; INDUSTRY;

SOCIETIES AND INSTITUTIONS;

EID: 84882453407     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.2055     Document Type: Article

References (103)

1. Aravind D, Christmann P,. 2011. Decoupling of standard implementation from certification: does quality of ISO 14001 implementation affect facilities' environmental performance? Business Ethics Quarterly 21 (1): 73-102.
2. Argote L, McEvily B, Reagans R,. 2003. Managing knowledge in organizations: an integrative framework and review of emerging themes. Management Science 49 (4): 571-582.
3. Audia PG, Rider CI,. 2010. Close, but not the same: locally headquartered organizations and agglomeration economies in a declining industry. Research Policy 39 (3): 360-374.
4. Basker E, Noel M,. 2009. The evolving food chain: competitive effects of Wal-Mart's entry into the supermarket industry. Journal of Economics & Management Strategy 18 (4): 977-1009.
5. Bennear LS,. 2008. What do we really know? The effect of reporting thresholds on inferences using environmental right-to-know data. Regulation & Governance 2 (3): 293-315.
6. Bennear LS, Olmstead SM,. 2008. The impacts of the 'right to know': information disclosure and the violation of drinking water standards. Journal of Environmental Economics and Management 56 (2): 117-130.
7. Berchicci L, Dowell G, King A,. 2011. Where do environmental capabilities reside? Firms' effects on their facilities' environmental performance. Working paper, S. C. Johnson Graduate School of Management, Cornell University, Ithaca, NY.
8. Berrone P, Cruz C, Gomez-Mejia LR, Larraza-Kintana M,. 2010. Socioemotional wealth and corporate responses to institutional pressures: do family-controlled firms pollute less? Administrative Science Quarterly 55 (1): 82-113.
9. Berrone P, Gomez-Mejia LR,. 2009. Environmental performance and executive compensation: an integrated agency-institutional perspective. Academy of Management Journal 52 (1): 103-112.
10. Blackman A, Afsah S, Ratunanda D,. 2004. How do public disclosure pollution control programs work? Evidence from Indonesia. Human Ecology Review 11 (3): 235-246.
11. Boal WM, Ransom MR,. 1997. Monopsony in the labor market. Journal of Economic Literature 35 (1): 86-112.
12. Bollinger B, Leslie P, Sorensen A,. 2011. Calorie posting in chain restaurants. American Economic Journal: Economic Policy 3 (1): 91-128.
13. Boschma R,. 2005. Proximity and innovation: a critical assessment. Regional Studies 39 (1): 61-74.
14. Bui LTM, Kapon S,. 2012. The impact of voluntary programs on polluting behavior: evidence from pollution prevention programs and toxic releases. Journal of Environmental Economics and Management 64 (1): 31-44.
15. Campbell D, Stanley J,. 1963. Experimental and Quasi-Experimental Designs for Research. Rand-McNally: Chicago, IL.
16. Capron L, Mitchell W, Swaminathan A,. 2001. Asset divestiture following horizontal acquisitions: a dynamic view. Strategic Management Journal 22 (9): 817-844.
17. Carney M, Gedajlovic E,. 1991. Vertical integration in franchise systems: agency theory and resource explanations. Strategic Management Journal 12 (8): 607-629.
18. Chatterji AK, Toffel MW,. 2010. How firms respond to being rated. Strategic Management Journal 31 (9): 917-945.
19. Chew WB, Bresnahan TF, Clark KB,. 1990. Measurement, coordination, and learning in a multi-plant network. In Measures for Manufacturing Excellence, Kaplan RS, (ed). Harvard Business School Press: Boston, MA; 129-162.
20. Christmann P,. 2000. Effects of 'best practices' of environmental management on cost advantage: the role of complementary assets. Academy of Management Journal 43 (4): 663-680.
21. Costa DL, Kahn ME,. 2000. Power couples: changes in the locational choice of the college educated, 1940-1990. Quarterly Journal of Economics 115 (4): 1287-1315.
22. Currie J, Hanushek EA, Kahn EM, Neidell M, Rivkin SG,. 2009. Does pollution increase school absences? Review of Economics and Statistics 91 (4): 682-694.
23. Cutler DM, Huckman RS, Landrum MB,. 2004. The role of information in medical markets: an analysis of publicly reported outcomes in cardiac surgery. American Economic Review 94 (2): 342-346.
24. Darnall N,. 2009. Regulatory stringency, green production offsets, and organizations' financial performance. Public Administration Review 69 (3): 418-434.
25. Darnall N, Edwards D,. 2006. Predicting the cost of environmental management system adoption: the role of capabilities, resources and ownership structure. Strategic Management Journal 27 (4): 301-320.
26. Darr ED, Argote L, Epple D,. 1995. The acquisition, transfer, and depreciation of knowledge in service organizations: productivity in franchises. Management Science 41 (11): 1750-1762.
27. David P, Bloom M, Hillman AJ,. 2007. Investor activism, managerial responsiveness and corporate social performance. Strategic Management Journal 28 (1): 91-100.
28. Delmas MA, Montes-Sancho M, Shimshack J,. 2010. Mandatory information disclosure policies: evidence from the electric industry. Economic Inquiry 48 (2): 483-498.
29. Delmas MA, Montiel I,. 2008. The diffusion of voluntary international management standards: responsible Care, ISO 9000, and ISO 14001 in the chemical industry. Policy Studies Journal 36 (1): 65-93.
30. Delmas MA, Toffel MW,. 2008. Organizational responses to environmental demands: opening the black box. Strategic Management Journal 29 (10): 1027-1055.
31. Delmas MA, Toffel MW,. 2012. Institutional pressures and organizational characteristics: implications for environmental strategy. In The Oxford Handbook of Business and the Environment, Bansal P, Hoffman AJ, (eds). Oxford University Press: New York; 229-247.
32. Diestre L, Rajagopalan N,. 2011. An environmental perspective on diversification: the effects of chemical relatedness and regulatory sanctions. Academy of Management Journal 54 (1): 97-115.
33. Dooley RS, Fryxell GE,. 1999. Are conglomerates less environmentally responsible? An empirical examination of diversification strategy and subsidiary pollution in the U.S. chemical industry. Journal of Business Ethics 21 (1): 1-14.
34. Drope JM, Hansen WL,. 2006. Does firm size matter? Analyzing business lobbying in the United States. Business and Politics 8 (2): 1-17.
35. Elsbach KD, Kramer RM,. 1996. Members' responses to organizational identity threats: encountering and countering the Business Week rankings. Administrative Science Quarterly 41 (3): 442-476.
36. Espeland WN, Sauder M,. 2007. Rankings and reactivity: how public measures recreate social worlds. American Journal of Sociology 113 (1): 1-40.
37. Feldman SJ, Soyka PA, Ameer P,. 1997. Does improving a firm's environmental management system and environmental performance result in a higher stock price? Journal of Investing 6 (4): 87-97.
38. Fischer HM, Pollock TG,. 2004. Effects of social capital and power on surviving transformational change: the case of initial public offerings. Academy of Management Journal 47 (4): 463-481.
39. Florida R, Davison D,. 2001. Gaining from green management: environmental management systems inside and outside the factory. California Management Review 43 (3): 64-84.
40. Freudenberg WR,. 2005. Privileged access, privileged accounts: toward a socially structured theory of resources and discourses. Social Forces 84 (1): 89-114.
41. Fung A, Graham M, Weil D,. 2007. Full Disclosure: The Perils and Promise of Transparency. Cambridge University Press: New York.
42. Gamper-Rabindran S,. 2006. Did the EPA's voluntary industrial toxics program reduce emissions? A GIS analysis of distributional impacts and by-media analysis of substitution. Journal of Environmental Economics and Management 52 (1): 391-410.
43. Gillan SL, Starks LT,. 2000. Corporate governance proposals and shareholder activism: the role of institutional investors. Journal of Financial Economics 57 (2): 275-305.
44. Goodstein JD,. 1994. Institutional pressures and strategic responsiveness: employer involvement in work-family issues. Academy of Management Journal 37 (2): 350-382.
45. Grant DS, Bergesen AJ, Jones AW,. 2002. Organizational size and pollution: the case of the U.S. chemical industry. American Sociological Review 67 (3): 389-407.
46. Grant D, Jones AW,. 2003. Are subsidiaries more prone to pollute? New evidence from the EPA's Toxics Release Inventory. Social Science Quarterly 84 (1): 162-173.
47. Grant DS, Jones AW, Trautner MN,. 2004. Do facilities with distant headquarters pollute more? How civic engagement conditions the environmental performance of absentee managed plants. Social Forces 83 (1): 189-214.
48. Greene WH,. 2008. Econometric Analysis (6th edn). Pearson/Prentice Hall: Upper Saddle River, NJ.
49. Greenstone M, Oyer P, Vissing-Jorgensen A,. 2006. Mandated disclosure, stock returns, and the 1964 Securities Acts Amendments. Quarterly Journal of Economics 121 (2): 399-460.
50. Greenwood R, Diaz AM, Li SX, Lorente JC,. 2010. The multiplicity of institutional logics and the heterogeneity of organizational responses. Organization Science 21 (2): 521-539.
51. Gruber J,. 1994. The incidence of mandated maternity benefits. American Economic Review 84 (3): 622-641.
52. Hamilton JT,. 1995. Pollution as news: media and stock market reactions to the Toxics Release Inventory data. Journal of Environmental Economics and Management 28 (1): 98-113.
53. Hamilton JT,. 1999. Exercising property rights to pollute: do cancer risks and politics affect plant emission reductions? Journal of Risk and Uncertainty 18 (2): 105-124.
54. Hanna RN, Oliva P,. 2010. The impact of inspections on plant-level air emissions. B.E. Journal of Economic Analysis & Policy 10 (1 Contributions) Article 19. Available at: http://www.bepress.com/bejeap/vol10/iss1/art19 (accessed January 2012).
55. Hannan EL, Kilburn H Jr, Racz M, Shields E, Chassin MR,. 1994. Improving the outcomes of coronary artery bypass surgery in New York State. Journal of the American Medical Association 271 (10): 761-766.
56. Hansen WL, Mitchell NJ, Drope JM,. 2005. The logic of private and collective action. American Journal of Political Science 49 (1): 150-167.
57. Hart SL,. 2010. Capitalism at the Crossroads: Next Generation Business Strategies for a Post-Crisis World (3rd edn). Pearson Education: Upper Saddle River, NJ.
58. Henriques I, Sadorsky P,. 1996. The determinants of an environmentally responsive firm: an empirical approach. Journal of Environmental Economics & Management 30 (3): 381-395.
59. Ingram P, Simons T,. 1995. Institutional and resource dependence determinants of responsiveness to work family issues. Academy of Management Journal 38 (5): 1466-1482.
60. Jin GZ, Leslie P,. 2003. The effect of information on product quality: evidence from restaurant hygiene grade cards. Quarterly Journal of Economics 118 (2): 409-451.
61. Jin GZ, Leslie P,. 2009. Reputational incentives for restaurant hygiene. American Economic Journal: Microeconomics 1 (1): 237-267.
62. Khanna M, Anton WQ,. 2002. Corporate environmental management: regulatory and market-based pressures. Land Economics 78 (4): 539-558.
63. King AA, Lenox MJ,. 2000. Industry self-regulation without sanctions: the chemical industry's responsible care program. Academy of Management Journal 43 (4): 698-716.
64. King AA, Lenox MJ,. 2002. Exploring the locus of profitable pollution reduction. Management Science 48 (2): 289-299.
65. King AA, Lenox MJ, Terlaak A,. 2005. The strategic use of decentralized institutions: exploring certification with the ISO 14001 management standard. Academy of Management Journal 48 (6): 1091-1106.
66. King AA, Shaver JM,. 2001. Are aliens green? Assessing foreign establishments' environmental conduct in the United States. Strategic Management Journal 22 (11): 1069-1085.
67. Klassen RD, Whybark DC,. 1999. The impact of environmental technologies on manufacturing performance. Academy of Management Journal 42 (6): 599-615.
68. Konar S, Cohen MA,. 1997. Information as regulation: the effect of community right to know laws on toxic emissions. Journal of Environmental Economics and Management 32 (1): 109-124.
69. Konar S, Cohen MA,. 2001. Does the market value environmental performance? Review of Economics and Statistics 83 (2): 281-289.
70. Lafontaine F, Slade M,. 2007. Vertical integration and firm boundaries: the evidence. Journal of Economic Literature 45 (3): 629-685.
71. Lenox M, King A,. 2004. Prospects for developing absorptive capacity through internal information provision. Strategic Management Journal 25 (4): 331-345.
72. Lewis-Beck MS, Alford JR,. 1980. Can government regulate safety? The coal mine example. American Political Science Review 74 (3): 745-756.
73. Lounsbury M,. 2007. A tale of two cities: competing logics and practice variation in the professionalizing of mutual funds. Academy of Management Journal 50 (2): 289-307.
74. Maddala GS,. 1977. Econometrics. McGraw-Hill: New York.
75. Madsen TL, Walker G,. 2007. Incumbent and entrant rivalry in a deregulated industry. Organization Science 18 (4): 667-687.
76. Maritan CA, Brush TH,. 2003. Heterogeneity and transferring practices: implementing flow manufacturing in multiple plants. Strategic Management Journal 24 (10): 945-959.
77. Marquis C, Battilana J,. 2009. Acting globally but thinking locally? The enduring influence of local communities on organizations. Research in Organizational Behavior 29: 283-302.
78. Mascarenhas B,. 1989. Domains of state-owned, privately held, and publicly traded firms in international competition. Administrative Science Quarterly 34 (4): 582-597.
79. Moskowitz TJ, Vissing-Jørgensen A,. 2002. The returns to entrepreneurial investment: a private equity premium puzzle? American Economic Review 92 (4): 745-778.
80. Oberholzer-Gee F, Mitsunari M,. 2006. Information regulation: do the victims of externalities pay attention? Journal of Regulatory Economics 30 (2): 141-158.
81. O'Dell C, Grayson CJ,. 1998. If only we knew what we know: identification and transfer of best practices. California Management Review 40 (3): 153-174.
82. Okhmatovskiy I, David R,. 2012. Setting your own standards: internal corporate governance codes as a response to institutional pressure. Organization Science 23 (1): 155-176.
83. Oliver C,. 1991. Strategic responses to institutional processes. Academy of Management Review 16 (1): 145-179.
84. Peterson ED, DeLong ER, Jollis JG, Muhlbaier LH, Mark DB,. 1998. The effects of New York's bypass surgery provider profiling on access to care and patient outcomes in the elderly. Journal of the American College of Cardiology 32 (4): 993-999.
85. Potoski M, Prakash A,. 2005. Covenants with weak swords: ISO 14001 and facilities' environmental performance. Journal of Policy Analysis and Management 24 (4): 745-769.
86. Reid EM, Toffel MW,. 2009. Responding to public and private politics: corporate disclosure of climate change strategies. Strategic Management Journal 30 (11): 1157-1178.
87. Russo MV,. 2009. Explaining the impact of ISO 14001 on emission performance: a dynamic capabilities perspective on process and learning. Business Strategy and the Environment 18 (5): 307-319.
88. Russo MV, Harrison NS,. 2005. Organizational design and environmental performance: clues from the electronics industry. Academy of Management Journal 48 (4): 582-593.
89. Schuler DA,. 1996. Corporate political strategy and foreign competition: the case of the steel industry. Academy of Management Journal 39 (3): 720-737.
90. Schulze WS, Lubatkin MH, Dino RN, Buchholtz AK,. 2001. Agency relationships in family firms: theory and evidence. Organization Science 12 (2): 99-116.
91. Scorse J, Schlenker, W., 2012. Does being a 'top 10' worst polluter affect facility environmental releases? Evidence from the U.S. Toxic Release Inventory. Working paper, Monterey Institute of International Studies, Monterey, CA.
92. Short JL, Toffel MW,. 2010. Making self-regulation more than merely symbolic: the critical role of the legal environment. Administrative Science Quarterly 55 (3): 361-396.
93. Szulanski G,. 1996. Exploring internal stickiness: impediments to the transfer of best practice within the firm. Strategic Management Journal 17 (1): 27-43.
94. Terlaak A, King AA,. 2006. The effect of certification with the ISO 9000 Quality Management Standard: a signaling approach. Journal of Economic Behavior & Organization 60 (4): 579-602.
95. Tietenberg T,. 1998. Disclosure strategies for pollution control. Environmental and Resource Economics 11 (3-4): 587-602.
96. Toffel MW, Marshall JD,. 2004. Improving environmental performance assessment: a comparative analysis of weighting methods used to evaluate chemical release inventories. Journal of Industrial Ecology 8 (1-2): 143-172.
97. Toffel MW, Short JL,. 2011. Coming clean and cleaning up: does voluntary self-reporting indicate effective self-policing? Journal of Law and Economics 54 (4): 609-649.
98. U.S. Environmental Protection Agency. 1994. Addition of certain chemicals; toxic chemical release reporting; community right-to-know; final rule. Federal Register 29 (229): 61432-61502.
99. U.S. Environmental Protection Agency. 2004. The Toxics Release Inventory (TRI) and factors to consider when using TRI data. Available at: http://www.epa.gov/tri/triprogram/FactorsToConPDF.pdf (accessed January 2011).
100. U.S. Environmental Protection Agency. 2010. Risk-screening environmental indicators (RSEI). Available at: http://www.epa.gov/opptintr/rsei/ (accessed January 2011).
101. U.S. Environmental Protection Agency. 2011. Toxics Release Inventory (TRI) program: reporting forms and instructions. Available at: http://www.epa.gov/tri/report/ (accessed December 2011).
102. Weil D, Fung A, Graham M, Fagotto E,. 2006. The effectiveness of regulatory disclosure. Journal of Policy Analysis and Management 26 (1): 155-181.
103. Wooldridge JM,. 2000. Introductory Econometrics: A Modern Approach. South Western College Publishing: Cincinnati, OH.