Does Corporate Social Responsibility reporting improve financial performance? The moderating role of board diversity and gender composition

Abstract

This paper explores the relationship between Corporate Social Responsibility (CSR) reporting and financial performance and the moderating effect of board gender diversity on that relationship. Using a panel data set consisting of a sample of French companies listed on the SBF 120 during the period 2008–2015, we find a neutral effect from CSR reporting using Tobin’s Q variable to measure performance, whereas a negative effect is observed with the ROA variable as a performance measure – findings that support the trade-off hypothesis. We also find that CSR reporting enhances corporate financial performance through the positive moderating role of gender diversity on the board. Thus, this research provides theoretical and empirical insights into the issue of gender diversity in relation to CSR. Regulators and stakeholders should be aware of the potential effect of engagement in CSR reporting and of the benefits of having a gender-diverse board.