Corporate Social Investment in Africa

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Carbon Tax Implications On Corporate Social Investment In The South African Motor Vehicle Manufacturing Industry

Carbon Tax Implications On Corporate Social Investment In The South African Motor Vehicle Manufacturing Industry

Notwithstanding the fact that the sample size of the motor vehicle manufacturers could be seen as a limitation within the context of the case study, it does provide some important contributions in that it highlights that the industry is a major contributor to various CSI initiatives and that the advent of carbon tax does not seem to diminish its commitment to CSI initiatives. The possibility that the respondents are not representative of all multinational motor vehicle manufacturers in South Africa could not be ruled out and the study should be read within this context. A further limitation is that CSI expenditure may well be driven by other factors, such as economic environment, company financial performance, and changes in company advertising policy, which is not necessarily within the scope of the study. It has been noted that CSI is specific to South Africa and that it promises to present a new way of addressing developmental problems in South Africa. Within this context, if CSI is successful in changing the way companies conduct their business, further research will have to be conducted on whether this will be sufficient to attract further foreign direct investment.
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The Impact of Corporate Social Responsibility Disclosure on Financial Performance of Firms in Africa

The Impact of Corporate Social Responsibility Disclosure on Financial Performance of Firms in Africa

Unlike for the sales and manufacturing, health and pharmacy and others industries, our empirical results suggest that CSRdisc affects the financial performance of firms in the short-run (ROA) negatively for the mining, investment and transport industries. We propose that this negative impact is an extra cost burden to the firms. Thus, CSR does not generate economic benefits for the firms in the short-run in those industries. This is in accordance to the study of Barnett and Salomon (2012) which suggests that firms with weak social performance produce a negative relationship between corporate social performance and corporate financial performance (Barnett and Salomon, 2012). The results are consistent with prior studies suggesting no immediate economic benefits for CSR applications. With respect to long-term (ROE) financial performance, majority of our results suggest no significant economic benefits for the firms. The data for individual firms under an industry confirmed the low-performance of firms. Keeping a control on other factors, it can be concluded that whether CSR earns a positive return on the financial performance of firms in long-term scenario is dependent on many other factors such as performance of industry during the sample of observation particularly the previous financial performance of the industries, individual performance of firms within the industry (Kim et al., 2012). Also our results confirmed that CSR affects each industry differently. Similar explanation holds for the country level perspective. Conclusively, based on our overall result, there has not been much contribution of CSR on firms’ performance in Africa. Consequently, we proffer the following recommendations: Table 6: Panel regression output for country level
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State corporate social development in South Africa: The role of the state in advancing corporate social engagement

State corporate social development in South Africa: The role of the state in advancing corporate social engagement

least quarterly, twelve key business leaders meet twelve leaders o f the organised labour movement to discuss current issues and ameliorate tensions (Interviewee 97, white, male, business). Both parties work from the premise that South Africa has to become internationally competitive, and the ‘chosen destination for foreign investment’ (Interviewee 97, white, male, business). But the MLC has also come under criticism, primarily for replicating NEDLAC processes which arguably dilute the latter’s efficacy; ‘an indication that NEDLAC is slowly drifting apart (Interviewee 96, coloured, male, stakeholder organisation/ex-union). In addition, critics also see the MLC as lacking accountability. Some argue that, unmandated, it simply facilitates the interaction between business and labour elites (‘elite- pacting’)^®. Whilst the MLC makes outcomes public, the discussions remain confidential. On the one hand, it allows a free-exchange of ideas without sanction, whilst on the other, opens the process to charges o f secrecy and elitism. Another criticism rests on the perception that the MLC is personality-driven, and is therefore a vulnerable institution given that people move in and out o f positions (Interviewee 48, Indian, male, business/ex-union). However, it was acknowledged that compromises won by business around Sunday payment, amendments to the LRA to include arbitration and the stripping of more militant language from trade union discourse were a consequence o f debates and common understandings derived in the MLC (Kindra and Daniels 2001). One informant saw the de-radicalising o f unions as having negative consequences for the labour movement (Interviewee 99, white, male, academic). Indeed, a challenge for the labour leadership is to bring its constituency along with it, outside the safety of the boardroom.
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“Apartheid-Induced” Corporate Social Responsibility in the Context of South Africa: A Review

“Apartheid-Induced” Corporate Social Responsibility in the Context of South Africa: A Review

In developed and industrialized economies, like the US, Europe and UK, models of CSR can be said of as comparatively well defined. Therefore, as the notion of CSR takes superiority more globally, there was the need exploring the nature of CSR in individual countries, particularly Sub-Sahara Africa. In this respect, (Robertson 2009) raises the question: “Is a universal model of CSR applicable across countries or is CSR specific to country context?” Comparing the developed and developing economics perspectives, empirical evidence on CSR literature and research have focused more on developed economies, with relatively scant literature available from the developing countries perspective (Julian & Ofori-Dankwa 2013). For instance, Belal & Momin (2009) assert that, most prior studies on CSR were based on developed economies and articles focusing on CSR practice in China were virtually non-existent. This assertion was not far from many Sub-Saharan African countries, with very scant prior studies (Ofori & Hinson 2007). However, in recent times CSR practice could be said of as gaining much prominence. It is worth recognizing that there has been an upsurge in CSR research and acceptance in Sub-Saharan African countries (Hinson et al. 2017). Wahba & Elsayed (2015) indicate that research studies investigating CSR relations should be done from different countries perspective. This is important not only because “socially responsible investment has no universal principles” (McLachlan & Gardner 2004) but rather corporate social responsibility has often “a location-specific context” (Welford et al. 2008). Thus, CSR practice in one country may differ slightly from those of other countries, as country-specific indicators may influence the notion and practice. The need for CSR research focusing
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The Paradox of Corporate Social Responsibility in Africa: Case of French Multinational Corporations

The Paradox of Corporate Social Responsibility in Africa: Case of French Multinational Corporations

In the context of globalisation Africa requires investment by multinational corporations (MNCs) to improve its competitiveness and to facilitate micro-level structural changes required for alleviating poverty and reducing its riskiness for investment. Economic theory recognises that MNCs can contribute to economic growth in developing countries through generating positive externalities. However, the extent to which Africa benefits from spill-over effects of MNCs remains to be empirically investigated. While some multinational corporations that operate in Africa take the corporate social responsibility (CSR) policies seriously, on the other hand there had been several complaints in many African countries on how these French multinational corporations conduct business within the continent. Thus, this paper intends to analyse the various paradoxes that are surrounding the activities of French multinational companies operating in Africa.
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Participative leadership and organizational identification in SMEs in the MENA Region : testing the roles of CSR perceptions and pride in membership

Participative leadership and organizational identification in SMEs in the MENA Region : testing the roles of CSR perceptions and pride in membership

Strand (2011) asserts that the role that participative leadership can play in CSR propounds a promise for research. CSR goes further than seeking self-interest or profit and abiding by the law (Aguilera et al., 2007) as it focuses around doing some social good (McWilliams and Siegel, 2001). It has been pondered as the fundamental activity in the formation of stakeholder relationships (Bhattacharya et al., 2009). It can be separated into two categories. The first category is external CSR which comprises of activities related to a cause distinct from the enterprise, directed toward external stakeholders. This can take the form of getting involved in a social project such as sponsoring an event or making donations to a charity organization. The second category is internal CSR which comprises of activities related to employees and to the way the enterprise operates internally (Basil and Erlandson, 2008). These activities are directly associated with the psychological and physical work environment (Turker, 2009), and relate to the well-being, health, and safety of employees (Vives, 2006). This can take the form of providing safety policies or having a well-grounded code of ethics (Basil and Erlandson, 2008). They are also expressed as activities that show concern for employees’ training, equal opportunities, and work-life balance (Vives, 2006). Examples include having non- discrimination work policies and a clear statement on working hours (Welford, 2005).
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Participative Leadership and Organizational Identification in SMEs in the MENA Region: Testing the Roles of CSR Perceptions and Pride in Membership

Participative Leadership and Organizational Identification in SMEs in the MENA Region: Testing the Roles of CSR Perceptions and Pride in Membership

The leader-follower relationship is one of the most central discussions in the corporate world today. A good leader is essential to attain good results out of employees and enhance their emotional aspects positively (Choudhary et al., 2013). Limited number of studies have explored the role that leadership plays on employees’ organizational identification (OI). Those studies have mainly concerted on transformational and transactional leadership (e.g., Epitropaki and Martin, 2005; Zhu et al., 2012). Participative leadership, however, is relatively a newcomer on the prospect of leadership research (Martin, 2015). This style of leadership that favours consultation and discussion over direction (Amabile et al., 2004) has proven to be positively related to desirable employee outcomes such as organizational commitment, job satisfaction, job performance, organizational citizenship behaviour, and team innovation (e.g., Chen at al., 2011; Huang et al., 2010; Miao et al., 2014; Somech, 2005), but has not yet been linked to OI. OI is the v ision of a member’s belongingness to an organization so that the membership to that organization converts into a substantial portion of the person’s self-definition (Ashforth and Mael, 1989). Moreover, research calls for the examination of potential mediators in the affiliation of participative leadership with the different employee elements as this profoundly lacks examination (e.g., Hassan et al., 2013; Miao et al., 2014). This study intends to address these gaps by investigating how participative leadership possibly leads to increased OI. This study’s sequential mediation model tested in the Middle East and North Africa (MENA) region
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Corporate investment grade

Corporate investment grade

According to Rogers (2008) companies that improve their debt situation and start to negotiate shares on the new market are well regarded by foreign investors. This may be the first step, since the investment grade title is a consequence to the company that was already demonstrating these characteristics. When a company reaches the investment grade, it represents low credit risk and reduced vulnerability. The main drive for companies to achieve a better classification of their debt is based on cost reduction for fund raisings, still with the ongoing pressure of competitiveness increase, especially comparing to international competitors. Companies that gained the investment grade start to access the market differently. All companies seek the classification because it represents a competitive advantage in the way they are financed. To achieve the investment grade, a corporation needs to basically prove that it has conditions to honor its commitments with external and internal markets despite of government moves. Receiving the investment grade is just a start point to corporations. The improvement in capital structure and improvement of investors’ interest does not happen overnight. Over the last decades important changes happened regarding corporation management, such as the productive restructuring, aiming higher profits and therefore improved yields. Among these changes, there is the spreading of the certification process, in which corporations try to inform and signal consumers that are meeting quality standards and rules expected by the market, presenting a brand or stamp given by an assessment body. Besides countries, corporations also receive the so-called investment grade. In the year of 2008 base of this article, there were 70 Brazilian corporations that presented the “stamp of approval” certification, in at least one of the agencies.
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Littlewood, D. (2015) Corporate Social Responsibility (CSR), Mining and Sustainable Development in Namibia: Critical Reflections through a Relational Lens

Littlewood, D. (2015) Corporate Social Responsibility (CSR), Mining and Sustainable Development in Namibia: Critical Reflections through a Relational Lens

Focus groups were a secondary method of data collection, with 9 undertaken. Of those, 6 involved a translator, who in line with research best practice was fully briefed about their role and the project prior to commencement. Additionally, observation research was undertaken, and a research diary kept over the 12 month fieldwork period. Analysis of the interview and focus group data involved first transcription, and then annotation and coding utilising NVIVO data analysis software. The coding process was informed by key themes drawn from the antecedent literature but remained a largely inductive sense making process. At the time and subsequently, primary data collection was supplemented with secondary document analysis e.g. reports to stakeholders, newspaper reports etc. Limitations in the research methodology are recognised. First it was not possible to undertake research with all mining companies in Namibia, with less attention given to smaller industry actors. Nevertheless it is felt an adequate selection of companies was examined. Secondly, investment and development in Namibia s mining industry is fast changing as are advances in CSR practice and conditions on the ground e.g. legislative developments and changes in the macro-economic climate, for instance the effects of the global financial crisis and fluctuating commodity prices. Recognising this challenge every effort has been made to remain informed of local developments in the cases and industry.
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Corporate Social Responsibility and the role of Rural Women in Sustainable Agricultural Development in sub Saharan Africa: Evidence from the Niger Delta in Nigeria

Corporate Social Responsibility and the role of Rural Women in Sustainable Agricultural Development in sub Saharan Africa: Evidence from the Niger Delta in Nigeria

The extent to which the CSR initiatives of the MOCs have contributed to community development in the region remains contested. For example, scholars such as Idemudia (2014), Frynas (2009), Tuodolo (2009) and others have argued that the CSR process in the Niger Delta region is not far-reaching or deeply entrenched. But in contrast, Renouard and Lado (2012), Lompo and Trani (2013), Uduji and Okolo-Obasi (2018d) support the CSR initiatives, arguing that MOCs have somewhat contributed to basic capabilities like water, electricity and shelter, material well-being of some people living close to oil production sites in these communities. Arguably, Muthuri (2012), relying on the extant literature on CSR in Africa, posited that CSR issues prevalent in Africa include poverty reduction, community development, education and training, economic and enterprise development, health and HIV/AIDS, environment, sports, human rights. Visser (2006) used the nature of CSR in an African context to argue against the accuracy of Carroll (1991) on priorities in developing countries, and pro posed that Carroll’s CSR Pyramid would not be the best model for understanding CSR initiatives in Africa. Philip (2006) posited that the motivation for CSR in Africa comes from the institutional failure of the government, unlike in USA and Europe where government pressure on multinational corporations has gone a long way in shaping CSR initiatives. Amaeshi et al (2006) proposed that CSR in Nigeria be aimed towards addressing the peculiarity of the socio-economic development challenges of the country (e.g. poverty alleviation, health care provision, infrastructural development, education, etc) and would be informed by socio-cultural influence (e.g. communication and charity); they might not necessarily reflect the popular Western standard/expectations of CSR (e.g. consumer protection, fair trade, green marketing, climate change concerns, social responsible investments, etc). Hence, philanthropic initiatives as CSR by MOCs are prevalent in Nigeria (Uduji et al, 2018).The positioning of this research in the relation to the engaged literature has been covered in the introduction 3 .
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Corporate Social Responsibility And Sustainability: The New Bottom Line?

Corporate Social Responsibility And Sustainability: The New Bottom Line?

Each year, thousands of not-for-profit; social services; educational; health care; and environmental organizations make pitches to corporate entities to help partially or fully fund projects they deem are for the common good. And thousands are funded with the promise of some benefit in return to the funding corporation in question; usually having bottom line metrics. And those companies, who give their money and other resources, probably deem themselves as being socially responsible; but what about beyond the bottom line? What about sustainability? Corporate social responsibility (CSR), also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. For ages, corporations measured success primarily on profits; but do profits guarantee that the corporation will still be around in the future? The thinking a little more than a decade ago, according to J. Ivancevich, P. Lorenzi, S. Skinner, and P. Crosby (1997), was that there was no specific standard that a firm followed since managers thought quite differently about what constituted social responsible behavior. Some managers viewed social responsibility as an obligation; others viewed it as a reactive situation; still others considered proactive behavior to be the proper position.
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CORPORATE SOCIAL RESPONSIBILITY AND SPIRITUALITY IN THE ZIMBABWEAN CONTEXT: A PARADIGM SHIFT IN CORPORATE UNDERSTANDING

CORPORATE SOCIAL RESPONSIBILITY AND SPIRITUALITY IN THE ZIMBABWEAN CONTEXT: A PARADIGM SHIFT IN CORPORATE UNDERSTANDING

Spirituality is derived from the Latin word spiritus, spirit, ultimate or immaterial reality or inner path, the essential part of the person (Piles, 1990), which „controls the mind and the mind controls the body‟ (Neuman, 1995:48). The term spirituality has its own fascinating history, but is generally used to denote “certain positive inward qualities and perceptions T (Wulff, 1996:p.47). These suppositions point that a human being is fully human when he integrates all capabilities. Spirituality is a capability to achieve goals, and evident enough examples, of the Church in schools and hospitals has led way to development. These articulate skills employed by these trans-state organisations have given shape to what and how corporate social responsibility can be understood. Leaders continue to inspire the spirit of workmanship for the better – that form of spirituality inspires the individual to do better and development his or her surroundings. For example, Zimbabwe Republic Police realises its mandate to the public and this year in 2017 it included in its annual theme the word, “grace” and as an organisation its members are encouraged to pray before work. Spirituality permeates to motivate all aspects of corporate, if humans act from desires of the spirit.
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Exploring the Impact of Work Life Balance on the Employee and Organisational Growth

Exploring the Impact of Work Life Balance on the Employee and Organisational Growth

Perhaps Globalization has been in the existence since 2000 BC, as trading was in practice between Indus Valley Civilization and the Mesopotamian Civilization. Globalization is the process of international integration arising from the interchange and interaction of different ideas, products, services and other aspects of economies of the present world. Developments in transportation and telecommunications infrastructure, including the evolution of Internet, are major factors of globalization which made the world global village. Further interdependency of economic and cultural activities has become a reality. if globalization is the major effect of evolution, then sustainability is its one of the major side effects and CSR is most vital element of this sustainability. Sustainability is a multileveled strategy, which could be at individual / organizational / regional / national / international strategy. By Channel News Asia the sustainability is evaluated as ESG Report, which is on the basis of three parameters i.e. economic, social, governance which carries different weights as per the industry type or sector. But irrespective of high need of CSR investment, the amount spent on CSR is below 1% of PAT. From 1 st April 2014-under section 135 in the companies act govt. has enrolled compulsory investment on CSR activities not less than 2% of last three years annual average net profit for certain industries, these are Date: w.e.f 1 st
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A Resolution on Corporate Social Responsibility

A Resolution on Corporate Social Responsibility

CSR is extremely about guaranteeing that the company can develop on an economical premise, while guaranteeing reasonableness to all partners, CSR has made some amazing progress in India. It has effectively interlaced business with social consideration and condition maintainability. From responsive exercises to maintainable initiatives, corporate have unmistakably displayed their capacity to have a noteworthy effect in the general public and enhance the general personal satisfaction. In the present social circumstance in India, it is troublesome for one single substance to realize change, as the scale is tremendous. Corporate have the aptitude, vital reasoning, labor and cash to encourage broad social change. Successful associations between corporate, NGOs and the
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Understanding Social and Environmental Accounting

Understanding Social and Environmental Accounting

Mathews (1993) considers both the moral and pragmatic reasons underlying the adoption of social and environmental disclosures by organisations in his discussion of organisational legitimacy. He explains that if on the one hand, a manager wishes to present the corporation as acting within a social contract framework, he is in fact trying to legitimise the organisation in the eyes of the society where the organisation resides. This kind of legitimacy panders to the moral issue. On the other hand, a manager may not believe that constituencies are entitled to the disclosures, but nevertheless chooses to make disclosures to satisfy a demand for information and thereby legitimise the organisation with the public. This second form of legitimacy, in turn, panders to the sentiments of the public. In both forms, however, the common denominator is the need for visibility, social approval and political support albeit the fact that different organisations differ considerably in their degrees of need for this kind of legitimacy. Mathews asserts that the implications which the notion of organisational legitimacy has for the management of the corporation include better communication with the society. Figure 5 illustrates some of the components of concepts and theories which justify the existence of non-conventional accounting in its various forms.
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Corporate Social Responsibility: A Growth Avenue As Per Companies Act 2013

Corporate Social Responsibility: A Growth Avenue As Per Companies Act 2013

India is a country of endless contradictions. On the one hand, it has grown to be one of the largest economies in the world, and an increasingly important player in the emerging global order, on the other hand, it is still home to the largest number of people living in absolute poverty and the largest number of undernourished children. What emerges is a picture of uneven distribution of the benefits of growth which many believe, is the root cause of social unrest.

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How corporate social responsibility enhances the development
of renewable energy supply in Bulgaria

How corporate social responsibility enhances the development of renewable energy supply in Bulgaria

In the 21 st century, CSR is an integrative part of business strategy for long-term sustainable business (Dr. Visser, W., 2013 14 , Low, Jonathan, 2013 15 , KPMG, 2011 16 ),. A number of definitions exist for CSR. The European Commission defines CSR as: ‘A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.’ According to the World Business Council for Sustainable Development (WBCSD), ‘Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.’ Carroll (1979) frames the understanding of CSR into four types of social responsibilities to describe what CSR is. Carroll’s model of CSR (1991) classifies company’s CSR in a pyramid to prioritize corporate responsibilities as per their meaning in regard to their economic, legal, ethical and philanthropic responsibilities. The four layers of the pyramid explain CSR interpretation in companies as reasons for their engagement with CSR. According to Carroll, the first layer of corporate CSR implementation is the understanding of CSR as a firm’s economic responsibilities to be competitive and gain profits. The second layer of CSR incorporation is based on the firm’s perception of CSR as legal responsibilities to governmental regulations. The third layer of CSR adoption is companies’ ethical responsibilities “to do what is right” and to be good to stakeholders. The last layer of CSR engagement is the understanding of CSR discourse as corporate philanthropic responsibilities to be a good corporate citizen for the benefit of both firm and society (figure 2). Therefore, the understanding of CSR is not that of narrow self-interest defined by M. Friedman (1970) 17 whereby the only social responsibility of business is the increase of its profits. On the contrary, strategic CSR confirms the interdependent relationship between business and society, in order to contribute to a company’s profit, by meeting the clients’ needs. Porter & Kramer (2006) believe that CSR is increasingly necessary to competitive performance and should be seen as creating shared value through social responsibility rather than being viewed as merely damage control or a PR campaign. Scholars confirm that the profitable role of CSR is in corporations’ ability to apply win-win solutions under the conditions of today’s economic crisis and problems with sustainable development. Win-win solutions encourage CSR activities to make positive contributions to
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Determinants of Capital Budgeting Practices and Risks Adjustment among Cambodian Companies

Determinants of Capital Budgeting Practices and Risks Adjustment among Cambodian Companies

Companies need to invest in wealth-creating assets in order to renew, extend or replace the means by which they carry on their business. Capital investment allows companies to continue to generate cash flows in the future or to maintain the profitability of existing business activities (Watson & Head, 2010). Financial management is concerned with the planning and controlling, the provision of resources (financing decision), the allocation of resources (investment decision) and finally the control of resources (whether funds are being used effectively or not). This will ultimately lead to achieving the primary objective of financial management, i.e., the maximisation of shareholder wealth. The continuity and sustainability of every company will rely on the returns generated from its investments. According to Miller and Modigliani (1961), future corporate earnings rely on the company’s investment policy, and investment decisions are responsible for a company’s future profitability and its market value. The capital budgeting theory lies within the concept of shareholders’ wealth maximization (Slagmulder et al., 1995) and involves investment decisions in which expenditures and receipts continue over a significant period of time (Peterson & Fabozzi, 2002; Dayananda et al., 2002).
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Corporate Restructuring and Investment

Corporate Restructuring and Investment

Corporate restructuring plays a very important role in the success of a company in times of performance decline. According to Allen and Bonaccorsi di Patti, Ashta and Tolle (2004), Gilson (2001), Lai and SuddarSanam (2001), Weston et al. (2004), restructuring has three main groups: The first is business restructuring (Hillier et al. 2005; Lang et al.,1995; Lasfer et al.,1996; Kang and Shivdasani,1997; Muherin and Boone; Shleifer and Vihny,1992; Weston et al. ,2004). Cost rationalization and finding new market. Financial restructuring (Finnerty,1985 Powell & Yawson,2008). The third refers to management restructuring (Datta & Iskandar-Datta,1995; Furtado & Vijay,1990).
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Law and Investment in Africa

Law and Investment in Africa

implying they suffer from endogeneity because the explaining variables in the equation of interest are correlated with the error term. Where the Hausman test fails to reject the null hypothesis (absence of endogeneity) we do not proceed with the TSLS (Models 7** and 8***). In a case, we fail to report results because the coefficient of determination (adjusted R²) is negative (Model 8**). We also report statistics of the weak instrument test of first-stage regressions in either Fisher (without control variables) or Cragg-Donald (with control variables) statistics depending on the nature of identification (difference between instruments and endogenous regressors). For domestic investment, the first issue is addressed by the significance of regulation quality in regressions with (Model 7) and without (Model 7*) a control variable. This also holds true for the rule of law in the presence of a control variable (Model 7***). The null hypothesis of the OIR is rejected in all regressions (but for Model 7**), implying the instruments are valid and legal origins explain domestic investment through no other mechanisms than law channels. With regard to foreign investment while our results are not relevant for the rule of law (Model 8** and 8***), they are consistent for the regression with regulation quality in the absence of a control variable (Model 8). The interpretations of results with respect to the two issues are same as for domestic investment (with the instruments both strong and valid).
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