Legitimising the Role of Corporate Boards and Corporate Social Responsibility on the Performance of Malaysian Listed Companies

Karim, Sitara; Manab, Norlida Abdul; Ismail, Rusmawati

doi:10.1177/0974686219881092

Cited by 19 publications

(17 citation statements)

References 36 publications

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“…Moreover, executive directors' remuneration is negatively related to environment and community practices (H2 partially rejected). These findings connote the over-investment hypothesis based on agency theory presumptions that CEOs and executive directors working for socially responsible practices tend to use corporate resources for their personal benefits (Karim et al , 2019; Miles and Miles, 2013). Ultimately, it is the shareholder who bears the cost of socially responsible activities indicating an inverse relationship between the remuneration pattern of CEOs, executive directors and socially responsible activities (Cai et al , 2011).…”

Section: Dynamic Panel Regression Resultsmentioning

confidence: 54%

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

Karim

2021

EDI

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PurposeThe prime objective of this study is to investigate the moderating influence of executive and independent female directors on the relationship between remuneration packages (CEO and executive director) and socially responsible practices (marketplace, environment, community, workplace and money spent on CSR) of 483 Malaysian listed firms during 2006–2017.Design/methodology/approachThe dynamic estimator, namely, system generalized method of moments (GMM) given by Blundell and Bond (1998) has been employed on the dataset to control dynamic endogeneity, unobserved heterogeneity and simultaneity problems.FindingsFindings indicate that there is a significant relationship between remuneration patterns of CEOs and executive directors and socially responsible activities. In the same way, executive board gender diversity significantly, whereas independent board gender diversity insignificantly moderates the remuneration and CSR nexus.Practical implicationsThis study is particularly significant for regulatory bodies of Malaysia, e.g. Securities Commission Malaysia, Bursa Malaysia, policy makers, investors and managers. For academia, this study fetches support from agency theory, stakeholder theory and upper echelons theory and presents integrated theoretical approach to be considered for future research.Originality/valueThis paper is unique in providing empirical evidence on the moderating effect of both executive and independent women directors on the relationship between remuneration patterns of CEOs and executive directors and independent CSR activities for the first time. Moreover, this study has sourced several theoretical and practical implications. And, the study employs dynamic estimator for precise and concrete results.

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Section: Dynamic Panel Regression Resultsmentioning

confidence: 54%

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

Karim

2021

EDI

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“…Given this turbulent economic period, the global financial markets have shown higher connectedness revealing varying attitudes of investors toward abrupt changes in the business situations (Rufino, 2018; Karim et al. , 2019a, b; Lopatta et al. , 2019; Eckert et al.…”

Section: Resultsmentioning

confidence: 99%

Do global factors drive the interconnectedness among green, Islamic and conventional financial markets?

Karim

Naeem

2022

IJMF

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PurposeThis study aims to examine the connectedness among green, Islamic and conventional financial markets from December 2008 to May 2021. Moreover, the impact of global factors on the connectedness of given financial markets is also observed.Design/methodology/approachThis study first employed the time-varying parameter vector autoregressions (TVP-VAR) technique to explore the connectedness of markets. Second, This study utilized the wavelet coherence analysis to test the time-frequency impact of global factors in terms of implied volatilities of stock, oil, gold, currency and bond on the connectedness across financial markets.FindingsThis study finds Islamic stocks, sustainability index and S&P500 composite index are the net transmitters, whereas Sukuk, commodity index, bond market, clean energy and green bonds are the net recipient of spillovers. Time-varying features of green, Islamic and conventional financial markets are evident in system-wide connectedness. This study further evidenced that global factors drive the connectedness of financial markets, particularly during stressful times.Practical implicationsThe findings of this study furnish significant implications for policymakers, regulatory authorities, investors, financial market participants and portfolio managers in terms of carefully assessing the unique characteristics offered by each financial market in terms of risk mitigation and diversifying the portfolios.Originality/valueUsing a portfolio of green, Islamic and conventional financial markets, the uniqueness of this study lies in the examination of the connectedness of these markets by deploying the TVP-VAR technique. In addition, wavelet analysis offers a significant contribution in terms of global factors driving the connectedness of green, Islamic and conventional markets.

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“…The association between the performance of a firm and CSR has been excessively researched ( Creixans-Tenas et al., 2019 ; Islam et al., 2021 ). While some studies have investigated the direct impact of CSR on the performance of a firm ( Agyemang Otuo and Ansong, 2017 ; Jang Soojeen et al., 2019 ; Karim et al., 2019 ; Yoon and Chung, 2018 ), others claimed that this association might be influenced by some other intervening parameters and involved other factors in their studies ( Hasanudin et al., 2019 ; Saeidi et al., 2015 ). For example, using data gathered from the 3401 observations of the publicly traded firms in China (2009–2015) by Jia (2020) showed that CSR could improve the performance of the firm when its strategy emphasizes the value appropriation more than the value creation.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

How does organizational leadership contribute to the firm performance through social responsibility strategies?

Saeidi

Robles

Saeidi

et al. 2021

Heliyon

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Despite the wide-ranging studies on Corporate Social Responsibility (CSR), firm performance, and Organizational Leadership (OL), there have been only a few studies examining the inter-relationship between them. Accordingly, this investigation has tried to investigate how OL contributes to the firm's performance through the CSR strategies. It has an internal orientation to CSR motivations compared to the existing studies that mostly considered the external factors in implementing of CSR in firms; also, it has a comprehensive view toward the firm's performance by considering both financial and non-financial aspects of performance. It could be said that this study has tried to answer the question of whether or not CSR can be as a mediator between the OL and firm performance. Data collection was performed from 285 manufacturing and consumer products firms located in Malaysia during the four-month period of June-September of 2020. AMOS Structural Equation Modeling (AMOS-SEM) method was applied to analyze the model. Following the Baron and Kenny approach in testing the hypotheses, it was found that the relationships of OL and financial performance, as well as OL and non-financial performance were partially mediated by CSR. In addition, the non-financial performance was found as a full mediator between the OL and financial performance. Further, the results revealed two full mediated relationships in this way that non-financial performance was a full mediator variable between CSR and financial performance, as well as CSR and nonfinancial performance which were found as two multiple full mediators between OL and financial performance. The results help Malaysian managers to understand their current status, capabilities, strong points and weaknesses in leadership regarding to CSR. Moreover, due to the positive effects of CSR on both firm's financial and non-financial performance, CSR is recommended to be integrated in leadership style and the organizational strategies in order to having better performance.

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Legitimising the Role of Corporate Boards and Corporate Social Responsibility on the Performance of Malaysian Listed Companies

Cited by 19 publications

References 36 publications

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

Do global factors drive the interconnectedness among green, Islamic and conventional financial markets?

How does organizational leadership contribute to the firm performance through social responsibility strategies?

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