The influence of ownership structures and board practices on corporate social disclosures in Bangladesh

Rashid, Afzalur and Lodh, Sudhir (2009) The influence of ownership structures and board practices on corporate social disclosures in Bangladesh. In: Research in accounting in emerging economies. Research in Accounting in Emerging Economies (Volume). Emerald Group Publishing Limited, Bingley, United Kingdom, pp. 211-237. ISBN 978-1-84855-252-4


Purpose – This study examines the influences of ownership concentration and the imposition of regulation on corporate governance (especially appointments of independent outside directors into the board) on voluntary corporate social disclosures (CSD) practices in Bangladesh.
Design/methodology/approach – CSD indices are developed using content analysis in terms of different attributes reported in the sample companies’ annual reports. Consistent with earlier studies, a checklist of items is constructed to assess the extent of CSD in annual reports. A two-stage least square (2SLS) regression analysis is used to examine the extent of the influences on CSD practices due to differing ownership structures and changed board compositions upon a notification of good corporate governance principles by the regulatory body in Bangladesh. To compare the differences on CSD practices before and after the imposition of regulation two periods (pre-notification from 2004 to 2005 and post-notification from 2006 to 2007) are considered for the analysis.
Findings – The results show that although ownership structures have small influence on CSD practices, but the imposition of regulation on good corporate governance can significantly influence such practices.

Practical implications – This suggests that without regulation (imposed or otherwise) companies have no incentives to provide voluntary social disclosures in annual reports in a developing country context.

Original/value of paper – This study contributes to the literature on the practices of CSD in the context of developing countries. As well, this study supports the theory of pro-regulation on corporate governance.

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Item Type: Book Chapter (Commonwealth Reporting Category B)
Refereed: No
Item Status: Live Archive
Additional Information: Author's version not held.
Faculty/School / Institute/Centre: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 21 Jan 2011 06:30
Last Modified: 12 Sep 2016 02:31
Uncontrolled Keywords: corporate social disclosures; Bangladesh
Fields of Research : 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150199 Accounting, Auditing and Accountability not elsewhere classified
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150310 Organisation and Management Theory
16 Studies in Human Society > 1605 Policy and Administration > 160505 Economic Development Policy
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9104 Management and Productivity > 910402 Management
Identification Number or DOI: 10.1016/S1479-3563(08)08008-0

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