CEO power and corporate social responsibility (CSR) disclosure: does stakeholder influence matter?

Rashid, Afzalur and Shams, Syed and Bose, Sudipta and Khan, Habib (2020) CEO power and corporate social responsibility (CSR) disclosure: does stakeholder influence matter? Managerial Auditing Journal, 35 (9). pp. 1279-1312. ISSN 0268-6902


Abstract

Purpose – This study examines the association between Chief Executive Officer (CEO) power and the level of corporate social responsibility (CSR) disclosure, as well as the moderating role of stakeholder influence on this association.

Design/methodology/approach – Using a sample of 986 Bangladeshi firm-year observations, this study uses a content analysis technique to develop a 24-item CSR disclosure index. The ordinary least squares regression method is used to estimate the research models, controlling for firm-specific factors that potentially affect the levels of CSR disclosure.

Findings – The study findings indicate that CEO power is negatively associated with the level of CSR disclosure, and that the negative effects of CEO power on the level of CSR disclosure are attenuated by stakeholder influence. CEO power is documented as reducing the positive impact of CSR disclosure on a firm’s financial performance, with this negative impact attenuated if stakeholders have greater influence on the firm.

Practical implications – This study suggests that CEO power and stakeholder influence are important factors in determining firms’ incentives to disclose CSR information. Both CEO power and stakeholder influence need to be considered in the CSR – firm performance nexus, given the mixed findings documented in the literature.

Originality/value – This study makes a significant contribution to the literature on CSR practices by documenting that firms with a powerful CEO have lower levels of CSR disclosure, and that stakeholder influence affects CSR disclosure in the emerging economy context.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 23 Sep 2020 06:07
Last Modified: 23 Apr 2021 04:44
Uncontrolled Keywords: emerging economy, corporate social responsibility (CSR), stakeholder theory, CEO power
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350107 Sustainability accounting and reporting
Identification Number or DOI: https://doi.org/10.1108/MAJ-11-2019-2463
URI: http://eprints.usq.edu.au/id/eprint/39637

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