Corporate Governance and Corporate Social Responsibility Disclosure

Abstract

Developed countries are increasingly concerned about the relationship between corporate governance and corporate social responsibility disclosure while developing countries recently started to take care of this issue. Therefore, the main objective of the study is to examine the effect of the board mechanisms of corporate governance on the extent of social responsibility disclosure of Jordanian public industrial companies during the period (2010 to 2014). In this research, descriptive statistics are used to study variables, both correlation matrix and collinearity diagnostic are used to test whether multicollinearity problem exists. Finally, OLS regression analysis is used to test the hypotheses of the study. The results show that the extent of social responsibility disclosure is positively affected by board size and percentage of women on board, negatively affected by duality and board average age. Board meetings and board composition are insignificant to social responsibility disclosure. The study faces several limitations where the measurement of corporate social responsibility requires human judgment, which is subjective and ambiguous. Furthermore, the study sample was limited to industrial companies. Understanding the relationship between CG and CSR is very important because the CG mechanism is an obligation to protect and improve social, economic, and environment, as well as the welfare of society. CSR elements should be included within the companies' vision, mission, strategies and daily practices to maximize the shareholder value.

Does Board Diversity Matter for the Quality of CSR Disclosure? Evidence from the Financial Sector of Pakistan

“…The result is consistent with those of Khan et al (2010) for Bangladesh and Katmon et al (2019) for Malaysia. However, BODSIZE has a nonsignificant relationship with QCSR disclosure, which is inconsistent with Nour et al (2020), who found a positive relationship between board size and CSR practices. BODIND also has no impact on QCSR disclosure.…”

“…Therefore, board diversity as a strategic resource is more crucial for complex strategic decisions like CSR practices (Chang et al, 2017;Rao & Tilt, 2016a). The considerable literature on board diversity and CSR focuses on the nonfinancial sector (Hassan et al, 2020;Hunjra et al, 2020;Katmon et al, 2019;Khan et al, 2019a;Muttakin et al, 2015;Nour et al, 2020). However, concerning financial firms' commitment to CSR disclosure, so far no studies have been conducted on the effect of board diversity on QCSR disclosure in developing economies, particularly in Pakistan.…”

“…A larger board increases the effectiveness of a firm's disclosure as there are more members (Yusof et al, 2019). We also control for board independence and board meetings (Nour et al, 2020). Concerning audit committee characteristics, we include audit committee size (Khan et al, 2013), audit committee meetings (Khan et al, 2019b), and audit committee independence (Katmon et al, 2019).…”

“…Moreover, it enhances a firm's reputation (Axjonow, Ernstberger, & Pott, 2018), corporate legitimacy (Azim, 2016), and regulation compliance (Chuang & Huang, 2016), and it improves corporate financial performance (Platonova, Asutay, Dixon, & Mohammad, 2018). Despite its importance, recent studies on CSR disclosure in the developing country context demonstrate that the quantity and quality of CSR disclosure are still low (Katmon et al, 2019;Mehjabeen & Bukth, 2020;Nour, Sharabati, & Hammad, 2020). Hence, it is important to identify the main barriers preventing financial firms from engaging in quality CSR disclosure, and one important area for consideration is the way firms are governed (Hunjra et al, 2020).…”

The Effect of Corporate Governance Attributes on Corporate Social Responsibility Disclosure in Iraqi Companies: A Literature Review

“…Based on the Table1, 41 studies were analyzed by the researchers to understand the effects of internal corporate governance attributes on CSR reporting. Research attention is growing on the CG-Disclosure relationship in firms driven by the significant role that governance may have in affecting the CSRD behavior of companies (see Jizi et al, 2014;Nour, Sharabati & Hammad, 2020). Limited studies have addressed one of these variables in Iraq in ISX (Mukt, 2015).…”