Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market

Katmon, Nooraisah; Mohamad, Zam Zuriyati; Norwani, Norlia Mat; Farooque, Omar Al

doi:10.1007/s10551-017-3672-6

Cited by 361 publications

(646 citation statements)

References 172 publications

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“…There is a consensus in the literature that board diversity, including the diversity of directors, the gender diversity of directors, the diversity in director tenure, and the diversity in director expertise, can enhance CSR performance (Fernández‐Gago, Cabeza‐García, & Nieto, ; Harjoto, Laksmana, & Lee, ; Katmon, Mohamad, Norwani, & Farooque, ; McGuinness, Vieito, & Wang, ; Seto‐Pamies, ; Yasser, Mamun, & Ahmed, ). The abilities and experience of board members also act as driving forces of CSR performance and are mainly reflected in the education level of board members, the specialization of CSR committees, and the proportion of directors with foreign experience (Fuente, Garcia‐Sanchez, & Lozano, ; Katmon et al, ; Lau, Lu, & Liang, ). Existing research has also found that directors representing institutional investors play a positive role in CSR decision‐making (Pucheta‐Martínez & López‐Zamora, ).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Social trust and corporate social responsibility: Evidence from China

Chen

Wan

2019

Corp Soc Responsibility Env

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Based on neo‐institutional theory, this paper examines whether social trust can influence corporate social responsibility (CSR). Using a sample of 4,209 observations selected from 788 firms listed in China between 2008 and 2015 and adopting an ordinary least square regression, we provide strong empirical evidence showing that social trust is positively associated with CSR. The result supports the view that social trust, as a kind of socially normative force, helps corporate managers safeguard stakeholders' interests by engaging in socially responsible activities. Our result holds after applying a series of robustness tests. We further find the positive relationship between social trust and CSR is more pronounced for state‐owned companies. This paper is one of the first to focus on and examine the relationship between social trust and CSR, and the findings contribute to our understanding of the determinants of CSR and highlight the influential role of social trust in improving CSR.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Social trust and corporate social responsibility: Evidence from China

Chen

Wan

2019

Corp Soc Responsibility Env

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“…In this regard, a study conducted by Katmon, Mohamad, Norwani, and Farooque () reveals that not all dimensions of board diversity improve CSR disclosure for firms in Malaysia. The authors show that age and nationality diversity are negatively related to CSR disclosure, indicating that the presence of different ages or nationalities reduces the quality of CSR disclosure.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Corporate social responsibility reporting and corporate governance mechanisms: An international outlook from emerging countries

Gallego‐Álvarez

Pucheta‐Martínez

2019

Bus Strat Dev

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Within corporate governance, the board of directors plays a major role in improving corporate transparency by increasing the disclosure of corporate social responsibility (CSR) information. In this paper, we analyse the effect of board composition, particularly board independence, board gender diversity, CEO duality, and the presence of a CSR board committee on CSR reporting. Evidence of this effect is still scarce when it concerns the effect of corporate governance mechanisms and CSR disclosure in firms pertaining to emerging market economies, and for this reason, our study focuses on this type of country. Our sample comprises 934 international firm‐year observations from the following 10 countries with emerging markets: Brazil, Chile, China, Czech Republic, Egypt, India, Mexico, Russia, South Africa, and Thailand for the period 2004–2015. This classification of countries with emerging markets is based on the Morgan Stanley Capital International (MSCI) Emerging Markets Index. Drawing on agency and stakeholder approaches, we posit four hypotheses: board independence and CSR board committees positively affect CSR disclosure, whereas board gender diversity and CEO duality have a negative effect. The results obtained reveal that in emerging market economies, the presence of women on boards of directors is quite limited and, therefore, their participation in decision‐making is minimal. Furthermore, CEO duality discourages the disclosure of CSR information, which may be justified for the family orientation of most firms in these countries, where the CEO is usually also the chairperson of the board.

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“…CSR disclosure is an important means of improving transparency (Kaymak & Bektas, ), accountability (Ferrero‐Ferrero, Fernandez‐Izquierdo, & Munoz‐Torres, ), reputation (Aguilera‐Caracuel & Guerrero‐Villegas, ), corporate legitimacy (Garcia‐Sanchez & Martinez‐Ferrero, ), awareness about firms' environmental and social practices (Chang, Oh, Park, & Jang, ), and its performance (Michelon, Boesso, & Kumar, ). Despite its voluntary nature, contemporary empirical studies of CSR disclosure in developing nations documented that the quantity and quality of disclosed information are still low (Katmon, Zuriyati, Norlia, Norwani, & Farooque, ). Hence, it is crucial to pinpoint the major barriers limiting Pakistani firms from practicing quality CSR disclosure, and one important area for this consideration is the firms' governance structure (Elsakit & Worthington, ).…”

Section: Introductionmentioning

confidence: 99%

Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan

Khan

Saeed

2019

Corp Soc Responsibility Env

105

119

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The study proposed that the effect of board diversity on quality of corporate social responsibility (QCSR) disclosure in Pakistan should be patterned differently from existing literature of other nations. The study has focused seven different dimensions of board diversity such as age, gender, nationality, ethnicity, educational level, educational background, and tenure across 86 firms listed in Pakistan Stock Exchange from 2010 to 2017. The results of panel regression supported resource-based view theory and indicated that gender, nation, and tenure diversity are resources improving QCSR disclosure. However, educational background has a negative impact on QCSR disclosure. Further analysis across alternative measurement and estimation techniques produces robust results. The results revealed that there is no universal law of CSR supportive board diversity, due to the unique characteristic of various institutional contexts. This study suggests policy makers to focus on gender,nation, tenure and relevant educational background diversity while setting board diversity framework in Pakistan. KEYWORDS board diversity, Pakistan, quality of CSR disclosure, RBV theory

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Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market

Cited by 361 publications

References 172 publications

Social trust and corporate social responsibility: Evidence from China

Social trust and corporate social responsibility: Evidence from China

Corporate social responsibility reporting and corporate governance mechanisms: An international outlook from emerging countries

Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan

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