Board of director's effectiveness and the stakeholder perspective of corporate governance: Do effective boards promote the interests of shareholders and stakeholders?

Garcia-Torea, Nicolas; Souto, Belén Fernández-Feijóo; González, Marta de la Cuesta

doi:10.1016/j.brq.2016.06.001

Cited by 94 publications

(82 citation statements)

References 92 publications

(135 reference statements)

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“…The establishment of governance structures related to CSR, such as a CSR committee, emphasizes the significant relationship between corporate governance and CSR (Garcia-Torea et al, 2016).…”

Section: Resultsmentioning

confidence: 99%

Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies

Cucari

Falco

Orlando

2017

Corp Soc Responsibility Env

502

441

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This study investigates the association between environmental, social, and governance (ESG) disclosure and diversity of the board of directors (BoD) in Italian listed companies. Diversity of BoD in terms of gender diversity, CSR committees, board average, and independent directors are examined as to their influence on voluntary ESG disclosure. This rating is highly relevant to managers and investors considering ESG issues in their decision‐making process. The factors that drive or hinder ESG disclosure are gaining importance. Despite the relevance of the topic, in Italy there is a scarce amount of literature regarding diversity in the BoD. The data set includes ESG data for more than 54 Italian companies for the period 2011–2014. The results indicate that firm's CSR disclosure is associated with independent director and committee CSR. In addition, women on BoDs is negatively correlated while the age of the board is not significant. Based on this study, shareholders and policymakers will have a deeper knowledge on the significant roles that board diversity is playing as a determinant of ESG disclosure. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

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Section: Resultsmentioning

confidence: 99%

Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies

Cucari

Falco

Orlando

2017

Corp Soc Responsibility Env

502

441

View full text Add to dashboard Cite

show abstract

“…The relationships can provide channels for communication with, and access to support from, external organizations [37] and other kinds of stakeholders. This perspective makes it necessary to revisit the concept of the effectiveness of a company's board from a shareholder perspective to assess its validity in stakeholder theory [38]. It has been suggested that the stakeholder perspective of CG should be linked to CSP [39].…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis

Ortas

Álvarez

Zubeltzu³

2017

Sustainability

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This paper investigates the influence of organizations' board independence on corporate social performance (CSP) using a meta-analytic approach. A sample of 87 published papers is used to identify a set of underlying moderating effects in that relationship. Specifically, differences in the system of corporate governance, CSP measurement models and market conditions have been considered as moderating variables. The results show that the independence of a company's board positively influences CSP. This is because companies with more independent directors in their boards are more likely to commit to stakeholder engagement, environmental preservation and community well-being. Interestingly, the results also show that the positive connection between board independence and CSP is stronger in civil law countries and when CSP is measured by self-reporting data. Finally, the strength of the influence of the independence of a firm's board on CSP varies significantly in different market conditions. The paper concludes by presenting the main implications for academics, practitioners and policy makers.

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“…Regarding the board characteristics with an impact on CSR reporting, researchers have explored the effects of the presence of insiders (Mohd‐Ghazali, ), independent directors (Cabeza‐García, Sacristán‐Navarro, & Gómez‐Ansón, ), institutional directors (Jones, Makri, & Gomez‐Mejia, ; Samara & Berbegal‐Mirabent, ), and female directors (Frías‐Aceituno, Rodríguez‐Ariza, & García‐Sánchez, ) on CRS policies. According to Garcia‐Torea, Fernandez‐Feijoo, and de la Cuesta (), board attributes determine a board's effectiveness in performing tasks involving monitoring or making decisions, among other things. Thus, board characteristics are effective corporate governance mechanisms if they enable a board to carry out its duties.…”

Section: Introductionmentioning

confidence: 99%

The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

Pucheta‐Martínez

Bel‐Oms

Nekhili

2018

Sustainable Development

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This paper aims at examining the relationship between the board composition and corporate social responsibility (CSR) of a sample of listed financial entities, discussing the reasons driving these entities to disclose CSR information. We hypothesise that there is a positive association between outside (institutional and independent directors) and female directors and CSR disclosure, and a negative relationship between inside directors and CSR reporting. Our findings provide evidence that the presence of independent directors and female directors on boards promotes CSR disclosure. Moreover, the results also show that the presence of inside directors and institutional directors on boards does not have an influence on CSR reporting.Thus, our evidence suggests that board attributes, such as the presence of independent and female directors, encourage financial entities to report CSR matters, showing the effectiveness of these two corporate governance mechanisms. The paper sheds light on the influence of the board structure of financial entities on CSR disclosure.Therefore, this study contributes to past research by providing an index for measuring the CSR disclosure of financial entities and the importance of the distinction between outside and inside directors.

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Board of director's effectiveness and the stakeholder perspective of corporate governance: Do effective boards promote the interests of shareholders and stakeholders?

Cited by 94 publications

References 92 publications

Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies

Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies

Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis

The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

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