Board independence and corporate social responsibility reporting: mediating role of stakeholder power

Rashid, Afzalur (2021) Board independence and corporate social responsibility reporting: mediating role of stakeholder power. Management Research Review, 44 (8). pp. 1217-1240. ISSN 2040-8269


Abstract

Purpose
This study aims to examine the association between board independence and corporate social responsibility (CSR) reporting and the moderating role of stakeholder power on the association between board independence and CSR reporting.

Design/methodology/approach
Using a sample of 707 Bangladeshi firm-year observations, this study uses a content analysis technique to develop a 24-item of CSR reporting index. This study uses the ordinary least squares regression method to examine the relationship between board independence and CSR reporting.

Findings
The study finds that board independence does not influence CSR activities and relevant reporting in general. However, the non-influence of board independence and CSR reporting is offset by stakeholder power. Insider ownership, firm age, firm size, growth opportunities and market capitalisation have a positive influence on such reporting.

Practical implications
While this study suggests that stakeholders’ influence is an important factor in determining the firms’ incentives to disclose CSR information, this finding creates a new debate on the efficacy of independent directors and whether they are good monitors and are able to fulfil all the stakeholders’ expectations.

Originality/value
This study makes an important contribution to the literature on CSR practices by documenting that firms having powerful stakeholders induce the board and management to make more CSR reporting practices in the context of emerging economies.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 24 Feb 2021 02:55
Last Modified: 29 Jul 2021 03:12
Uncontrolled Keywords: board independence, content analysis, resource dependence theory, management, social responsibility, stakeholder theory
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150101 Accounting Theory and Standards
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350107 Sustainability accounting and reporting
Socio-Economic Objectives (2008): B Economic Development > 90 Commercial Services and Tourism > 9098 Environmentally Sustainable Commercial Services and Tourism > 909899 Environmentally Sustainable Commercial Services and Tourism not elsewhere classified
Identification Number or DOI: https://doi.org/10.1108/MRR-09-2020-0590
URI: http://eprints.usq.edu.au/id/eprint/41413

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