Abstract
Purpose – This study aims to examine the influence of board diversity on the quality of CSR disclosure (QCSR) and propose that this relationship is patterned differently in different contexts and nations, due to their distinctive characteristics. Design/methodology/approach – The r esource-based view (RBV) theory is used to evaluate the hypothesized relationship through an empirical investigation of 64 Pakistani financial firms , by applying a random-effects regression and the generalized method of moment s (GMM). ] Findings – The findings indicate that age, gender, educational level, and educational background diversities positively influence QCSR disclosure. However, nation ality , ethnic, and tenure diversities have no significant relationship with QCSR disclosure. The results were further checked by a robust regression and sensitivity analysis . Originality/value – Using RBV theory, this paper provides an additional contribution concerning the role played by board diversity in a firm's strategic performance, particularly CSR disclosure. The article contributes to the literature by finding that there is no unanimous rule for board diversity supporting CSR , due to the unique characteristics of different jurisdiction s and institutional context s.
Highlights
Recent corporate scandal, failures, business complexities, corruption, and global competition have shown that an overemphasis on stockholder wealth maximization while ignoring other aspects of a business results in failure and poor performance
Firms’ involvement in CSR disclosure and sustained competitive advantages suggest that board characteristics, board diversity, should have a relationship with CSR practices
We examined the influence of board diversity on CSR disclosure and predicted that the relationship may be patterned differently from in prior literature in different contexts and nations, due to their distinctive characteristics
Summary
Failures, business complexities, corruption, and global competition have shown that an overemphasis on stockholder wealth maximization while ignoring other aspects of a business results in failure and poor performance. Firms disclose CSR information to be more transparent and accountable (Barroso, Villegas, & Perez-Calero, 2011), and achieve a competitive edge in the global business environment (Khan, Khan, & Senturk, 2019b). It enhances a firm’s reputation (Axjonow, Ernstberger, & Pott, 2018), corporate legitimacy (Azim, 2016), and regulation compliance (Chuang & Huang, 2016), and it improves corporate financial performance (Platonova, Asutay, Dixon, & Mohammad, 2018). It is important to identify the main barriers preventing financial firms from engaging in quality CSR disclosure, and one important area for consideration is the way firms are governed (Hunjra et al, 2020)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
