Abstract
PurposeThis study aims to examine the relationship between board diversity and quality of corporate social responsibility (QCSR) disclosure.Design/methodology/approachThe study estimates seven dimensions of board diversity including age, gender, nation, ethnicity, educational level, educational background and tenure by applying Blau’s index. The relationship between board diversity and QCSR disclosure from the perspective of the resource-based view theory is estimated by using panel random effects regression across 57 firms producing exclusive sustainability reports listed in the Pakistan Stock Exchange from 2010 to 2017. The robustness of the results has also been checked through alternative measurements of the variables under study.FindingsThe regression results reveal that gender and national diversities are the firms’ valuable resources, having the potential to promote QCSR disclosure. However, age diversity was found to be negatively associated to QCSR disclosure. Furthermore, educational level, educational background, ethnicity and tenure were insignificant on QCSR disclosure. The sensitivity analysis supports the findings of the baseline model.Research limitations/implicationsPakistani firms need to improve the level of board diversity through encouragement of the inclusion of diverse forces of gender and nationality to enhance disclosure on CSR practices.Originality/valueThis is the first study on board diversity and QCSR in the case of Pakistan.
Published Version
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