Corporate social responsibility versus corporate shareholder responsibility: A family firm perspective

Abeysekera, Amal P.; Fernando, Chitru S.

doi:10.1016/j.jcorpfin.2018.05.003

Cited by 98 publications

(61 citation statements)

References 56 publications

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“…This is consistent with the idea that board's size and percentage of independent directors increase CSR scores. The proportion of women on two-tier boards and directors' shareholding are positively correlated with CSR score at a 1% significance level, thereby supporting the notion that firms with female directors and disperse ownership structure are more likely to report CSR statements than firms with few male executives and dominant shareholders (Abeysekera and Fernando, 2020;Furlotti et al, 2019;Lopatta et al, 2017). However, although maintained positive, the statistical significance of this correlation is lost for one-tier boards' sub-sample.…”

Section: Descriptive Statistics and Correlation Matrixmentioning

confidence: 60%

Is the effect of board diversity on CSR diverse? New insights from one-tier vs two-tier corporate board models

Jouber

2020

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Purpose The purpose of this study is to investigate the impact of board diversity on corporate social responsibility (CSR). The aim is twofold; does board diversity has any effect on CSR, do structural and demographic differences between one-tier and two-tier board models may impact this effect? Design/methodology/approach This paper applies a panel generalized method of moments estimator to a sample of 2,544 non-financial listed firms from 42 countries over the period of 2013–2017. Findings The findings reveal that board diversity leads to effective CSR. By distinguishing between diversity among boards from diversity within boards, the results display the effects of the specific variables that make up the manner and latter’s constructs within unitary and two-tier board structures. Specifically, this paper reveals that tenure, ideology and educational level (gender and nationality) predominantly appear to drive a firm’s CSR within one (two)-tier boards settings. These results remain consistent when robustness tests are ruled. Practical implications The study provides managers, investors and policymakers with knowledge about how among and within board diversity attributes favor the decision-making process around CSR. The evidence is useful for companies in setting the criteria to identify directors who can support their strategic decisions. It benefits, moreover, academics in better understanding firms’ CSR determinants and practices under different corporate board models. Social implications Examining how different sets of board diversity affect firms’ CSR given divergences between one-tier and two-tier board structure is a useful and informative endeavor for all community actors. Originality/value Unlike prior studies that identify the limited scope of diversity, the study is the first to examine the effect of broader dimensions of board diversity on CSR under both one-tier and two-tier board settings. This paper provides a contribution to a greater understanding of the impacts underlying board models and different attributes of board diversity on CSR. This new understanding will help to improve predictions of different features of board diversity impacts on decision-making processes around organizational outcomes.

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Section: Descriptive Statistics and Correlation Matrixmentioning

confidence: 60%

Is the effect of board diversity on CSR diverse? New insights from one-tier vs two-tier corporate board models

Jouber

2020

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“…In addition, Ref. [65] claimed that because of the Type II agency problem, socio-emotional wealth maximization in family businesses overwhelms shareholder wealth maximization, resulting in non-value-enhancing CSR engagement. Empirical studies by [63,64,[66][67][68][69][70][71] found a negative association between family ownership and CSR, which is consistent with the entrenchment notion that family firms are less committed to CSR than non-family firms.…”

Section: The Moderating Roles Of Family Ownershipmentioning

confidence: 99%

CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia

et al. 2021

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Only a few studies have investigated the association between the characteristics of the chief executive officer (CEO) (i.e., tenure and local or expatriate) and corporate social responsibility (CSR) reporting. Our study adds to the fledgling literature by providing new evidence from Saudi Arabia. Given the dominance of family control among Saudi Arabian listed firms, additionally, this study examined the moderating effect of family ownership on the CEO-CSR relationship. Using CSR scores from Bloomberg database from 2010 to 2019 and ordinary least squares (OLS) regression, the findings reveal that the association between CEO tenure and CSR reporting is positively significant; however, the association between CEO nationality and CSR is not significant. In addition, the findings indicate that family ownership is an important contingency factor that explains the association between CEO tenure and CEO nationality, and CSR reporting. Our study contributes to an emerging line of CSR research that investigates the effects of foreign CEOs on CSR transparency, and supports prior evidence on the benefits to investors of having long-serving CEO and the costs of family entrenchment.

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“…We expect that the bulk of the reaction reflects the reaction by minority stockholders because majority stockholders are less likely to expand their holdings, given that this would reduce their diversification even further. (Abeysekera & Fernando, 2020;Cordeiro et al, 2020) have already used the dataset to find relationships between family ownership and corporate environmental performance.…”

Section: Sample and Measuresmentioning

confidence: 99%

Family ownership and stockholder reactions to environmental performance disclosure: A test of secondary agency relationships

2021

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Using the first ever Newsweek "Green Rankings" of the 500 largest U. S. firms in 2009 as a significant historical event, we test for the stockholder reaction to ratings of corporate environmental performance. Both the conventional null hypothesis significance testing and Bayesian approaches show that stockholders react significantly more positively to corporations with higher ratings of corporate environmental performance and that this effect is stronger in family owned firms. Our findings suggest that majority shareholders do not necessarily appropriate minority stockholders' rents when investing in environmental activities, as would be the case in the presence of "Type II" agency conflicts between majority family owners and minority stockholders. The family ownership effect is also found to be stronger in dirty (heavy polluting) industries as well as in more competitive and more opaque industry contexts.

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Corporate social responsibility versus corporate shareholder responsibility: A family firm perspective

Cited by 98 publications

References 56 publications

Is the effect of board diversity on CSR diverse? New insights from one-tier vs two-tier corporate board models

Is the effect of board diversity on CSR diverse? New insights from one-tier vs two-tier corporate board models

CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia

Family ownership and stockholder reactions to environmental performance disclosure: A test of secondary agency relationships

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