scholarly journals Connecting the Dots: Do Financial Analysts Help Corporate Boards Improve Corporate Social Responsibility?

2021 ◽  
Author(s):  
Nazim Hussain ◽  
Isabel‐María García‐Sánchez ◽  
Sana Akbar Khan ◽  
Zaheer Khan ◽  
Jennifer Martínez‐Ferrero
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Analysts ◽  
Corporate Boards ◽  
Corporate Social ◽  
Connecting The Dots

Women on corporate boards: Do they advance corporate social responsibility?

2017 ◽  
Vol 71 (7) ◽  
pp. 897-924 ◽  
Author(s):  
Alison Cook ◽  
Christy Glass
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Boards Of Directors ◽  
Critical Mass ◽  
Organizational Outcomes ◽  
Numerical Representation ◽  
Corporate Boards ◽  
Board Diversity ◽  
The Board Of Directors ◽  
Corporate Social

Do women board directors change how companies do business? Firms face growing pressure to appoint more women to their boards of directors, yet little is known about the factors that enable female directors to impact their organizations. This study analyzes the representational thresholds that facilitate women’s leadership in the area of corporate social responsibility. We test the predictions of token theory and critical mass theory to evaluate the ability of women to impact firm outcomes based on their numerical representation on the board of directors. Our analysis focuses on board composition and organizational outcomes in the Fortune 500 from 2001 to 2010. Our findings challenge the theoretical assumptions that solo and token women are unable to exert significant influence over their organizations, and underscore the importance of board diversity for today’s firms.

Legitimising the Role of Corporate Boards and Corporate Social Responsibility on the Performance of Malaysian Listed Companies

2019 ◽  
Vol 12 (2) ◽  
pp. 125-141 ◽  
Author(s):  
Sitara Karim ◽  
Norlida Abdul Manab ◽  
Rusmawati Binti Ismail
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Performance Measures ◽  
Listed Companies ◽  
Lower Percentage ◽  
Board Independence ◽  
Corporate Boards ◽  
Board Size ◽  
Corporate Social

The prime objective of this study is to investigate the legitimate role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies during 2006–2017. Elements of corporate boards include board size, board independence and board diversity, whereas corporate social responsibility (CSR) dimensions constitute marketplace, environment, community and workplace. Both accounting-based (return on assets [ROA], return on equity [ROE]) and market-based (earnings per share [EPS]) performance measures have been employed for measuring performance. Pooled ordinary least squares method (OLS) and multiple regressions are used to estimate the dataset. Findings reveal larger board size and higher board independence positively affect firm performance and significantly legitimise the board role in firms. However, the presence of women on Malaysian corporate boards does not legitimate the performance due to their lower percentage on board, hence insignificantly affecting firm value. Additionally, out of four CSR dimensions, only marketplace is positively and significantly related to EPS and negatively and significantly related to ROA. Conversely, environment, community and workplace are insignificantly related to all performance measures, leaving firms in a questionable legitimate state. This study embraces support from agency theory, resource dependence theory, legitimacy theory and stakeholder theory. However, this research raises questionable insights for regulatory bodies and academicians in the form of corporate legitimacy.

Corporate social responsibility disclosure

2017 ◽  
Vol 8 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Joanna Krasodomska ◽  
Charles H. Cho
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Analysts ◽  
Financial Information ◽  
Computer Assisted ◽  
Snowball Sampling ◽  
Online Questionnaire ◽  
Content Type ◽  
Frequent Use ◽  
Corporate Social

Purpose The purpose of this study is to examine the usage of non-financial information related to corporate social responsibility (CSR) issues from the perspective of sell-side analysts (SSAs) and buy-side analysts (BSAs) employed in Poland-based financial institutions. Design/methodology/approach The authors conducted a survey among financial analysts with the use of the computer-assisted telephone interview (CATI) method and an online questionnaire. The adopted methods included purposeful, quota sampling and snowball sampling. Findings Results indicate that financial analysts make use of CSR disclosures very rarely and attribute little importance to such information. Despite the limited use of CSR information and negative assessments of its quality, respondents are in favor of making a more frequent use of CSR disclosures. Finally, except for an analyst’s attitude toward the “comparability in time” information characteristic, results do not indicate any significant differences between SSAs’ and BSAs’ responses. Research limitations/implications The limited number of questionnaires prevented the use of more sophisticated statistical methods and the formulation of conclusions that could apply to the entire population. In addition, although the adopted CATI method provides a number of advantages, it also has its limitations – interviews had limited time and the questions along with the answers had to take into account the respondents’ limited perception ability. Practical implications The results of this study suggest that CSR disclosures have limited usage for financial analysts, at least in the Polish context. Further, not only do respondents rarely make use of CSR disclosures but they also give low assessments to their quality. This implies that the concept of CSR remains relatively far from becoming a priority; hence, some measures and incentives may be necessary. Originality/value The paper adds to a relatively small number of studies that have dealt with the issue of non-financial information and its usefulness for SSAs and BSAs in Central and Eastern Europe.

scholarly journals Current state of corporate governance practices in Colombia

2021 ◽  
Vol 17 (1) ◽  
pp. 51-59
Author(s):  
Sandra Gaitán ◽  
Jimmy A. Saravia
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Hedge Funds ◽  
Global Financial Crisis ◽  
Future Research ◽  
Corporate Boards ◽  
Current State ◽  
Governance Practices ◽  
Corporate Social

In this paper, we review the current state of corporate governance in Colombia. First, we discuss the evolution of the legal framework of corporate governance including the main changes in the code of best corporate governance practices that took place since the global financial crisis of 2008. After this, we discuss key corporate governance issues such as the ownership structure of listed corporations and the market for corporate control, we analyze the practices of corporate boards of Colombian listed companies and their remuneration systems and the role of pension funds and hedge funds as shareholder activists. We also review the evidence regarding corporate governance and firm performance. Finally, we discuss the current state of corporate social responsibility (CSR) and an assessment of corporate governance specifics by industry. We conclude that there are opportunities for future research in several of these fields of study, especially regarding boards of director practices, director remuneration, and corporate social responsibility.

scholarly journals Board diversity, company’s financial performance and corporate social responsibility information disclosure in Malaysia

2020 ◽  
Vol 13 (1) ◽  
pp. 23-49
Author(s):  
Lily Suriana Hassan ◽  
Norman Mohd Saleh ◽  
Izani Ibrahim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Educational Level ◽  
Information Disclosure ◽  
Corporate Boards ◽  
Social Psychological ◽  
Board Diversity ◽  
Prior Literature ◽  
Corporate Social

The aim of this study is to investigate the relationship between board diversity, financial performance and disclosure of corporate social responsibility (CSR) information of the Malaysian listed companies. Different from prior literature, board diversity is viewed from the perspective of gender, age, tenure, educational level, professional membership and functional background. We used one explanation i.e. diversity as variety, out of three explanations from a typology in social psychological and organizational management fields. The sample consists of 205 companies listed on Bursa Malaysia. Using regression analysis, a significant positive relationship was noted between the functional backgrounds of directors and the companies’ financial performance. The result shows that boards should have diversity in their functional background. The other forms of board diversity such as gender, age, tenure, educational level and professional membership have been found not to influence companies’ financial performance. Board professional membership diversity was found to significantly increase the CSR information disclosure. However, other forms of board diversity were found not to influence the CSR information disclosure. These findings may suggest that corporate boards should have diversity in their functional background and professional membership in order to enhance companies’ financial performance and CSR information disclosure.

Impact of Assurance and Assurer's Professional Affiliation on Financial Analysts' Assessment of Credibility of Corporate Social Responsibility Information

2011 ◽  
Vol 30 (3) ◽  
pp. 239-254 ◽  
Author(s):  
Gary Pflugrath ◽  
Peter Roebuck ◽  
Roger Simnett
Keyword(s):  
United States ◽  
Corporate Social Responsibility ◽  
United Kingdom ◽  
Social Responsibility ◽  
Financial Analysts ◽  
The United States ◽  
Data Availability ◽  
Behavioral Experiment ◽  
The United Kingdom ◽  
Corporate Social

SUMMARY This study reports the results of a behavioral experiment examining whether financial analysts from Australia, the United States, and the United Kingdom perceive a difference in the credibility of stand-alone corporate social responsibility (CSR) reports depending on whether they are assured, and the type of assurance provider (professional accountants versus sustainability consultants). We further examine whether the perceived credibility differs for financial analysts from the different countries and whether results hold for companies from different industries. The overall results show the credibility of a CSR report is greater when it is assured and when the assurer is a professional accountant. While assurance increases the credibility of the information in each of the three countries included, the relative impact is context-specific. Information is perceived to be more credible when a company is from an industry where assurance is more commonplace, and by financial analysts from the United States when the assurer is a professional accountant. Financial analysts from Australia and the United Kingdom perceive little difference in the enhanced credibility provided by the different assurance providers. Data Availability: Contact the first author about the availability of the data.

scholarly journals Corporate Social Responsibility Disclosure and the Value Relevance of Annual Reports for Listed Banks in Kenya

2018 ◽  
Vol 14 (4) ◽  
pp. 329 ◽  
Author(s):  
Gitahi J. ◽  
Nasieku T. ◽  
Memba F.
Keyword(s):  
Corporate Social Responsibility ◽  
Content Analysis ◽  
Social Responsibility ◽  
Value Relevance ◽  
Financial Analysts ◽  
Secondary Data ◽  
Annual Reports ◽  
Primary Data ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social

This study investigated the relationship between corporate social responsibility disclosure and value relevance of annual reports for listed banks in Kenya. To do so, the study used content analysis and financial analysts’ perception to quantify corporate social responsibility disclosure, included by banks in their annual reports. The sample comprised of the annual reports of ten banks listed on the Nairobi Securities Exchange (NSE) over the entire period from year 2010 to year 2015. The study focused on banks due to additional regulation by the Central Bank of Kenya, (CBK). A survey research design was adopted. The study used both primary data and secondary data. Primary data was obtained through survey questionnaires administered on respondents who were financial analysts at a total of sixty one Kenya’s Capital Markets Authority (CMA) licensed firms (investment banks, stock brokers, fund managers and investment advisers) as at 30 April 2016. Secondary data was obtained from the corporate action register and handbook by the Nairobi Securities Exchange, the daily market statistics from the NSE data and annual reports released by the banks. Content analysis program ATLAS.ti 8, OneLook dictionary and Ms Excel 2007 were used for content analysis. Data analysis was carried out using SPSS version 20 and Stata 13. Descriptive statistics and inferential statistics were used for analysis. The results revealed that corporate social responsibility disclosure had a positive and significant relationship with value relevance of annual reports which was measured by the average market price per share, (MPS). This study therefore concluded that corporate social responsibility disclosure in annual reports of listed banks in Kenya affect the value relevance of the annual reports. The study recommends an expanded role of the auditor in reviewing the corporate social responsibility disclosure and other accounting narratives. Currently in accounting reporting, the auditor is not obligated to formally audit accounting narratives. Instead, an auditor reviews the accounting narratives to ascertain if the narratives are consistent with the financial statements. The study also recommends more guidelines and regulations in relation to non-financial disclosures to ensure that firms put clearer information in the hand of investors.

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