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

Abstract

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

Board gender diversity and environmental, social and governance performance of US banks: moderating role of environmental, social and corporate governance controversies

“…Wasiuzzaman and Wan Mohammad (2020) studies the impact of board gender diversity and ESG performance of Malaysian firms and reports a positive association. Khan et al (2019) also find similar results while studying the effect of gender on CSR practices of Pakistani firms. The literature on board gender diversity and ESG performance is limited.…”

An emerging economy perspective on corporate sustainability reporting – main actors’ views on the current state of affairs in Pakistan

“…Our argument is consistent with the lines of stakeholder and institutional point of view as well as the findings of Hossain et al 2017;Mahmood et al 2018;Masud et al 2018a, b. Moreover, the most recent study of Khan et al 2019 andMahmood et al 2018 found that board diversity (women board member, age, nationality, tenure) and the CSR committee has a significant impact in the sustainability disclosure of Pakistan.…”

“…This discussion confirms that CSR disclosure is significantly growing in Pakistan. Additionally, the latest study of Khan et al 2019 documented that board diversity variables like; gender, nation, tenure and educational qualification has a significant influence on CSR disclosure of Pakistani firms.…”

“…Therefore, foreign influence helps to achieve institutional isomorphism. The most recent study of Khan et al 2019 documented that foreign board diversity significantly influences Pakistani firms CSR reporting.…”

“…Stakeholder engagement reduces information asymmetry and sends an honest signal to the market (Bae et al 2018). Moreover, the most recent studies find an increasing pattern of stakeholders engagement in the Pakistani organisations (Khan et al 2019;Mahmood et al 2018;Ehsan et al 2018;Yunis et al 2018;Iqbal et al 2018).…”