Impact of Corporate Governance Mechanisms on Corporate Social Responsibility Disclosure of Publicly-Listed Banks in Bangladesh

Jahid, Md. Abu; Rashid, Md. Harun Ur; Hossain, Syed Zabid; Haryono, Siswoyo; Jatmiko, Bambang

doi:10.13106/jafeb.2020.vol7.no6.061

Cited by 46 publications

(73 citation statements)

References 39 publications

(54 reference statements)

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“…This research suggests that the existence of politically connected board members causes a company to disclose less CSR information. This finding is consistent with the previous studies (Hung, Kim, & Li, 2018;Jahid, Rashid, Hossain, Haryono, & Jatmiko, 2020;Muttakin, Mihret, & Khan, 2018). Political connections provide advantages to companies, such as making it easier for them to raise funds, reducing their litigation risk (Hung, Kim, & Li, 2018), and reducing public pressure on them (Muttakin, Mihret, & Khan, 2018).…”

Section: Discussionsupporting

confidence: 92%

“…Several studies found that the existence of politically connected board members decreases CSR disclosures (Hung, Kim, & Li, 2018;Jahid, Rashid, Hossain, Haryono, & Jatmiko, 2020;Muttakin, Mihret, & Khan, 2018). This is because the legitimacy coming from CSR can be substituted by the advantages a company gets from its politically connected board (Muttakin, Mihret, & Khan, 2018).…”

Section: H1: Government Ownership Has a Positive Impact On The Extent Of Csr Disclosuresmentioning

confidence: 99%

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Political Connections and CSR Disclosures in Indonesia

Saraswati¹,

Sagitaputri²,

Rahadian³

2020

JAFEB

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This research seeks to provide evidence about how political connections, proxied by government ownership and the existence of politically connected board members, affect the extent of corporate social responsibility (CSR) disclosures in Indonesian listed companies. This research uses the legitimacy theory as a basis for explaining management's motivation for disclosing its CSR. The sample consists of 131 firm-year observations from 38 non-financial public companies that published sustainability reports from 2013 to 2017. We measured the CSR disclosures using a disclosure checklist on the sustainability reports. We subsequently processed the data using a random effect (RE) linear regression. The result shows that CSR disclosures were greater in government-owned companies but lower in companies that have politically connected board members. The results support the legitimacy theory that the government intends to demonstrate legitimate national economic and political conditions by showing that government-owned companies are sustainable. However, CSR disclosures seem to have a substitutive relationship with the existence of politically connected board members, since those political connections may protect the company from public pressure and/or the risk of litigation, reducing the need for CSR disclosures. This research provides evidence that different types of political connections may have different impacts on corporate disclosures.

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Section: Discussionsupporting

confidence: 92%

Section: H1: Government Ownership Has a Positive Impact On The Extent Of Csr Disclosuresmentioning

confidence: 99%

Political Connections and CSR Disclosures in Indonesia

Saraswati¹,

Sagitaputri²,

Rahadian³

2020

JAFEB

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“…Therefore, businesses implement ADISC to legalize their actions and to get social approval. An organization also needs to keep in mind ethical and cultural values to comply with social norms to ensure legitimacy (Jahid et al, 2020). Moreover, the stakeholder theory was formulated by Freeman in 1984.…”

Section: Literature Reviewmentioning

confidence: 99%

Influence of profitability on responsibility accounting disclosure – Empirical study of Vietnamese listed commercial banks

Thinh

2021

Banks and Bank Systems

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Corporate social responsibility is the development trend in globalization. Businesses need to be accountable to shareholders. An organization should handle the relationship between community, economic, and social factors. The disclosure of responsibility accounting information by businesses has important implications for information users as well as stakeholders. The paper is intended to verify the influence of profitability on the disclosure of responsibility accounting of all listed commercial banks in Vietnam. The paper employs time series data for 2015–2019 and uses the ordinary least square method to test the model. Five independent variables related to profitability are examined. The results of the study show that ROA and ROE have a positive influence on responsibility accounting disclosure. Thereby, the state agencies of Vietnam need to promulgate regulations of responsibility accounting disclosure according to international standards and strictly control the disclosure of Vietnamese commercial banks to improve the quality of the information in the context of international integration.

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“…Previous studies have commonly used two fundamental theories such as legitimacy and stakeholder theory to consider the effect of CG on CSRD including Kuzey and Uyar (2015); Ghabayen et al (2016); Orazalin (2019); and Jahid et al (2020). The legitimate theory holds that the company must act in accordance with the value systems and social ethical norms (Dowling & Pfeffer, 1975).…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of Corporate Governance on Corporate Social Responsibility Disclosure: Empirical Evidence from Vietnamese Commercial Banks

Tran¹,

Lam²,

Luu³

2020

JAFEB

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Corporate social responsibility is an inevitable trend in the global context. It is the responsibility of the organizations to the community and society to ensure the fairness of the interests of stakeholders. This is an issue that deserves attention, not in the national or regional level, but as a global issue. The purpose of article is to examine the effect of corporate governance on corporate social responsibility disclosure of 155 samples of 31 Vietnamese commercial banks from 2015 to 2019. The data of this study is employing time-series data and used the ordinary least squares to test the model. The results show that there are three factors that positively affect corporate social responsibility disclosure, namely, board size, foreign members of board, and audit committee. Thereby, the article proposes that board of director in Vietnamese commercial banks needs to raise awareness about corporate social responsibility, and the Central bank of Vietnam should monitor the disclosure of information regularly with severe sanctions on commercial banks that do not comply with the regulations of corporate social responsibility disclosure. This contributes to improving the information quality of the banking sector to meet the trend of international economic integration.

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Impact of Corporate Governance Mechanisms on Corporate Social Responsibility Disclosure of Publicly-Listed Banks in Bangladesh

Cited by 46 publications

References 39 publications

Political Connections and CSR Disclosures in Indonesia

Political Connections and CSR Disclosures in Indonesia

Influence of profitability on responsibility accounting disclosure – Empirical study of Vietnamese listed commercial banks

Effect of Corporate Governance on Corporate Social Responsibility Disclosure: Empirical Evidence from Vietnamese Commercial Banks

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