Community norms and corporate philanthropy: the moderating role of women on board of directors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xin Wang ◽  
Zhe Zhang ◽  
Ming Jia
Keyword(s):  
Board Of Directors ◽  
Minority Groups ◽  
Corporate Philanthropy ◽  
Sample Selection ◽  
Gender Diversity ◽  
Economic Pressure ◽  
Heckman Selection Model ◽  
Content Type ◽  
Community Norms ◽  
The Relationship

PurposeThis study examines how community norms, such as religious atmosphere and economic pressures, affect corporate philanthropic giving. Grounded in upper echelon theory, the authors further focus on how the women on board of directors (BODs) play an important role in the relationship between community norms and corporate philanthropic giving.Design/methodology/approachThis study utilizes a two-stage Heckman selection model to control the sample-selection bias. The final sample includes 8,566 observations for the first stage and 5,575 observations for the second stage. Then, by using a sample of Chinese listed firms in 2010–2014, this study establishes a strong and robust support for the hypotheses.FindingsThis study finds that religious atmosphere is significantly and positively associated with corporate philanthropic giving, whereas the relationship between economic pressure and corporate philanthropy is negative. Furthermore, women on BODs not only strengthen the relationship between religious atmosphere and corporate philanthropic giving but also strengthen the relationship between economic pressure and corporate philanthropic giving.Originality/valueFirst, the authors contribute to community literature by developing a subdivided perspective. The authors provide the first attempt to empirically investigate the hidden association between the two perspectives of community (religious atmosphere and economic pressure) and corporate philanthropic giving. Second, the authors contribute to the literature on corporate philanthropy by expanding the antecedents of corporate philanthropic giving to communities where firms are headquartered. Third, by capturing the multiple identities of women, the authors enrich the study of the influence of minority groups on corporate decision-making. The authors find that gender diversity on BODs strengthen the influence of community norms on corporate philanthropic giving.

Board of directors and industry determinants of corporate philanthropy

2016 ◽  
Vol 37 (5) ◽  
pp. 672-688 ◽  
Author(s):  
Wonsuk Cha ◽  
Michael A. Abebe
Keyword(s):  
Social Responsibility ◽  
Board Of Directors ◽  
Positive Relationship ◽  
Resource Dependence ◽  
Corporate Philanthropy ◽  
Women Directors ◽  
Content Type ◽  
Industry Membership ◽  
The Relationship

Purpose – The purpose of this paper is to extend the current research on corporate philanthropy and organizational outcomes by empirically exploring two specific types of antecedents: board of director composition and industry membership. Design/methodology/approach – A theoretical framework was developed based on the resource dependence and stakeholder theories which suggest that the extent that firms build relationship with certain stakeholders is closely tied to the personal and social background of board members, in turn influencing the allocation of resources to corporate philanthropy. Hierarchical multiple regression analysis as well as analysis of variance with post hoc comparisons was conducted using multi-year data philanthropic data from 104 US corporations. Findings – The results provided empirical support for a positive relationship between the number of female board directors and the level of corporate philanthropy. In addition, the results showed significant inter-industry variations in the level of corporate philanthropy. This indicated that the rather aggressive role of philanthropy in mitigating reputational challenges associated with product-market dysfunctions. Contrary to the theoretical predictions, the results did not support a positive relationship between the proportion of outside directors and level of philanthropy. Research limitations/implications – The authors believe the empirical finding on the relationship between industry membership and corporate philanthropy is a significant contribution to the philanthropy literature. Accordingly, by empirically showing the disproportionately higher level of philanthropy by some prominent industries (such as gas and oil, financial services and chemical) than their counterparts, the authors contribute to the understanding of sector-level determinants of corporate philanthropy. Practical implications – Since board of directors have a direct involvement in reviewing and approving major corporate initiatives, the choice of these directors is more likely to influence the amount of resources committed to philanthropic causes. Consistent with other studies in the larger corporate social responsibility research, the authors found that more women directors on the board are associated with greater philanthropic spending. Hence, a major implication of the study is that shareholders and the general corporate community need to pay close attention into who is elected to serve as director of business organizations as these directors’ background and experience could shape major social responsibility initiatives such as corporate philanthropy. Originality/value – By empirically investigating the relationship between board composition and philanthropy, this study extends the scholarly discussion to focus on the role of the board in shaping the level of firm commitment in overall CSR. In addition, this study provides empirical evidence on the role of industry context in the level of commitment in corporate philanthropic activities.

The effectiveness of board of directors’ characteristics in mandatory disclosure compliance

2016 ◽  
Vol 24 (2) ◽  
pp. 154-176 ◽  
Author(s):  
Mishari M. Alfraih
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Gender Diversity ◽  
Mandatory Disclosure ◽  
Ceo Duality ◽  
Content Type ◽  
Multiple Directorships ◽  
The Board Of Directors ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between the characteristics of the board of directors and mandatory disclosure compliance (measured by International Financial Reporting Standards requirements) in firms listed on the Kuwait Stock Exchange (KSE) in 2010. Design/methodology/approach Several characteristics are used to assess the effectiveness of the board of directors: number of members, gender diversity, CEO duality, multiple directorships, the proportion of family members on the board and the presence of a member of the ruling family of Kuwait. Mandatory disclosure compliance is measured using a self-constructed, item-based index. A regression model tested the paper’s hypotheses. Findings After controlling for firm-specific characteristics, it was found that board size, gender diversity and multiple directorships were positively correlated with compliance, while CEO duality and the proportion of family members on the board were negatively correlated with compliance. Research limitations/implications Potential limitations stem from both the nature of the sample and the dataset. The small sample reflects the size of the KSE and the limited timeframe (a one-year period). Nevertheless, this paper provides some interesting insights. A longitudinal study would provide more comprehensive insights into the relationship between the characteristics of the board of directors and mandatory disclosure compliance over time. Practical implications The findings highlight the effectiveness of board of directors’ characteristics in promoting mandatory accounting compliance. As disclosure is fundamental for the effective functioning of capital markets and sound investments, a direct implication is that the quality of financial reporting can be improved by taking these characteristics into account. Originality/value The paper contributes to the literature on the determinants of mandatory accounting compliance. The findings highlight the importance of the board of directors’ role in enhancing transparency and ensuring the quality of financial reporting. The findings will be particularly valuable to those involved in the appointment of directors, who should be aware of the influence of the configuration and characteristics of the board on compliance.

Corporate social responsibility disclosure and information asymmetry: does boardroom attributes matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Hamrouni ◽  
Mondher Bouattour ◽  
Nadia Ben Farhat Toumi ◽  
Rim Boussaada
Keyword(s):  
Information Asymmetry ◽  
Gender Diversity ◽  
Moderating Effect ◽  
Board Independence ◽  
Environmental Disclosure ◽  
Content Type ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship ◽  
Social Disclosure

PurposeThe current study aims to investigate the relation between corporate social responsibility (CSR) and information asymmetry, as well as the moderating effect of board characteristics (gender diversity, size and independence) on this relationship.Design/methodology/approachThis paper uses a panel data regression analysis with the system generalized method of moments (SGMM) estimator of nonfinancial French firms included in the SBF 120 index. The environmental and social disclosure scores are collected from the Bloomberg database, while financial data are collected from the FactSet database.FindingsThe empirical results demonstrate that environmental disclosure has a positive impact on the level of information asymmetry, while social disclosure has no effect on the information environment. Gender diversity and board independence negatively impact the opacity index, while board size has a positive effect. The presence of women in board composition has a substitution effect on the relationship between environmental disclosure and information asymmetry. There is no moderating effect of board size on the association between CSR disclosure and information asymmetry. However, the proportion of independent female directors and board independence operates as substitutes to social disclosure on reducing information asymmetry.Research limitations/implicationsAlthough the models include the most common control variables used in the literature, they omit some variables. Second, the results should be interpreted with caution and should not be generalized to the entire stock market since the sample is based on large French companies.Practical implicationsThe results of this study may be of interest to managers, investors and French market authorities since France is characterized by highly developed laws and reforms in the area of CSR. In addition, the paper leads to a better understanding of how women on the board, in particular, independent female directors, affect the relationship between CSR disclosure and information asymmetry. This could be of interest to French authorities, which has encouraged the appointment of women through the adoption of the Copé–Zimmermann law.Originality/valueFirst, to the best of the authors' knowledge, this is the first study to explore the moderating effect of board characteristics on the relationship between CSR and information asymmetry. Second, unlike previous studies using individual proxies to measure information asymmetry, the authors favor the opacity index of Anderson et al. (2009). They calculate this index by including a fifth individual measure, namely, share price volatility. The opacity index better describes the information environment of companies than individual measures since it reflects the perceptions of investors and analysts together.

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sitara Karim
Keyword(s):  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Executive Directors ◽  
Women Directors ◽  
Socially Responsible ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Practical Implications

PurposeThe prime objective of this study is to investigate the moderating influence of executive and independent female directors on the relationship between remuneration packages (CEO and executive director) and socially responsible practices (marketplace, environment, community, workplace and money spent on CSR) of 483 Malaysian listed firms during 2006–2017.Design/methodology/approachThe dynamic estimator, namely, system generalized method of moments (GMM) given by Blundell and Bond (1998) has been employed on the dataset to control dynamic endogeneity, unobserved heterogeneity and simultaneity problems.FindingsFindings indicate that there is a significant relationship between remuneration patterns of CEOs and executive directors and socially responsible activities. In the same way, executive board gender diversity significantly, whereas independent board gender diversity insignificantly moderates the remuneration and CSR nexus.Practical implicationsThis study is particularly significant for regulatory bodies of Malaysia, e.g. Securities Commission Malaysia, Bursa Malaysia, policy makers, investors and managers. For academia, this study fetches support from agency theory, stakeholder theory and upper echelons theory and presents integrated theoretical approach to be considered for future research.Originality/valueThis paper is unique in providing empirical evidence on the moderating effect of both executive and independent women directors on the relationship between remuneration patterns of CEOs and executive directors and independent CSR activities for the first time. Moreover, this study has sourced several theoretical and practical implications. And, the study employs dynamic estimator for precise and concrete results.

scholarly journals Impact of governance structures on environmental disclosures in the Middle East and Africa

2020 ◽  
Vol 20 (4) ◽  
pp. 739-763 ◽  
Author(s):  
Erhan Kilincarslan ◽  
Mohamed H. Elmagrhi ◽  
Zezeng Li
Keyword(s):  
Corporate Governance ◽  
Middle East ◽  
Gender Diversity ◽  
Governance Structures ◽  
Environmental Disclosure ◽  
Content Type ◽  
Environmental Disclosures ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to investigate the impact of corporate governance structures on environmental disclosure practices in the Middle East and Africa (MEA). Design/methodology/approach The research model uses a panel data set of 121 publicly listed (non-financial and non-utility) firms from 11 MEA countries over the period 2010-2017, uses alternative dependent variables and regression techniques and is applied to various sub-groups to improve robustness. Findings The empirical results strongly indicate that MEA firms with high governance disclosures tend to have better environmental disclosure practices. The board characteristics of gender diversity, size, CEO/chairperson duality and audit committee size impact positively on MEA firms’ voluntary environmental disclosures, whereas board independence has a negative influence. Research limitations/implications This study advances research on the relationship between corporate governance structures and environmental disclosure practices in MEA countries, but is limited to firms for which data are available from Bloomberg. Practical implications The results have important practical implications for MEA policymakers and regulators. The positive impact of board gender diversity on firms’ environmental disclosures, policy reforms should aim to increase female directors. MEA corporations aiming to be more environmentally friendly should recruit women to top managerial positions. Originality/value This is thought to be the first study to provide insights from the efficiency and legitimation perspectives of neo-institutional theory to explain the relationship between MEA firms’ internal governance structures and environmental disclosures.

Perceived TMT transformational leadership and a service recovery culture: the moderating role of gender diversity

2020 ◽  
Vol 41 (8) ◽  
pp. 1171-1186
Author(s):  
Jeremy Galbreath ◽  
Douglas Hoffman ◽  
Gabriel Gonzalez ◽  
Mohammed Quaddus
Keyword(s):  
United States ◽  
Transformational Leadership ◽  
Leadership Styles ◽  
Service Recovery ◽  
Gender Diversity ◽  
The United States ◽  
Content Type ◽  
Public Firms ◽  
Recovery Culture ◽  
The Relationship

PurposeThis is an exploratory study with the purpose of empirically testing and advancing knowledge on the relationship between top management team (TMT) leadership styles and a service recovery culture. A further test explores a contingency perspective, examining if gender diversity on the TMT shapes this relationship.Design/methodology/approachWe examine the perceived TMT transformational leadership style, as well as the moderating effect of TMT gender diversity. Relying on both survey and archival data, our hypotheses are tested with a sample of 234 public firms based in the United States. Moderated hierarchical regression analysis is used as the statistical approach.FindingsResults suggest that perceived TMT transformational leadership is positively associated with a service recovery culture. When accounting for TMT gender diversity, the relationship between perceived TMT transformational leadership and a service recovery culture is positively moderated.Research limitations/implicationsThe study represents a sample of for-profit public firms operating in the United States and should not be taken as a general population sample. The findings could vary relative to other countries, private companies and non-profit organizations.Originality/valueThis is the first known study to explore the relationship between TMT leadership styles, TMT gender diversity and a service recovery culture. The study extends findings with the respect to the impact of TMT leadership and gender diversity on organizational development, as well as offers new insights into the antecedents of a service recovery culture.

Gender makes the difference: the moderating role of gender on the relationship between management structure and performance in banking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikola Stefanovic ◽  
Lidija Barjaktarovic
Keyword(s):  
Gender Diversity ◽  
Threshold Level ◽  
Bank Performance ◽  
Content Type ◽  
Executive Authority ◽  
The Difference ◽  
And Performance ◽  
The Relationship ◽  
Executive Boards

Purpose This study aims to explore the factors moderating possibly indirect relationships between gender diversity and its effect on bank performance. The causality of this relationship remains unclear. Design/methodology/approach The sample consists of all banks (n = 27) operating in Serbia. Findings The gender diversity-performance relationship is indirect. The gender diversity of executive boards positively impacts bank performance, over a threshold level. This is observed only in banks where gender diversity is extended to more than one level of executive authority. Research limitations/implications Gender diversity should be fostered, particularly in small and competitive markets. The gender diversity-performance link is based on gender-related social interactions, which are interdependent and should not be taken into account as isolated factors. Originality/value To the knowledge, this is the first study to provide insight into indirect, gender related, moderatory interactions effecting gender diversity – performance link, in banking.

Exclusive corporate philanthropy: rethinking the nexus of CSR and corporate philanthropy

2016 ◽  
Vol 12 (2) ◽  
pp. 280-294 ◽  
Author(s):  
Georg von Schnurbein ◽  
Peter Seele ◽  
Irina Lock
Keyword(s):  
Corporate Philanthropy ◽  
Point Of View ◽  
Future Research ◽  
Special Role ◽  
Theoretical Point ◽  
Bottom Line ◽  
Content Type ◽  
Different Characteristics ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this paper is to add to a better understanding of relationship of corporate social responsibility (CSR) and corporate philanthropy. The authors argue that corporate philanthropy is exclusive to CSR because of their different characteristics. Design/methodology/approach This paper is based on a profound literature review and discusses the relationship of CSR and corporate philanthropy from a theoretical point of view. By conceptually combining the CSR pyramid and the triple bottom line approach, the authors show that corporate philanthropy has a special role outside of the classical CSR concept. Findings Four fundaments of corporate philanthropy – economic, motivational, creative and moral – are described that illustrate the importance and outstanding role of corporate philanthropy for today’s businesses. Based on these, the authors formulate three new forms of corporate giving, volunteering and foundations, which the authors subsume under the novel notion of “exclusive corporate philanthropy”. Research limitations/implications The main contribution of this paper for future research is to regard corporate philanthropy as exclusive to CSR. Future studies might, therefore, consider the different characteristics of corporate philanthropy and engage in an empirical investigation of this new type. Practical implications The model of exclusive corporate philanthropy presented in this paper provides practitioners with a better understanding of how corporate philanthropy can be rolled out today. Originality/value This paper offers a new perspective on the relationship of CSR and corporate philanthropy. Based on the economic, motivational, creative and moral characteristics of corporate philanthropy, the authors establish a clear distinction between the two concepts.

Women representation on boards: a South African perspective

2016 ◽  
Vol 24 (2) ◽  
pp. 211-225 ◽  
Author(s):  
Gizelle Willows ◽  
Megan van der Linde
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Critical Mass ◽  
Gender Diversity ◽  
Current Status ◽  
Company Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose By looking at both theoretical and empirical findings, this study aims to investigate whether gender diversity results in improved corporate governance and financial performance for companies. Design/methodology/approach An analysis of the board composition of the Johannesburg Securities Exchange Top 40 companies as at 30 June 2013 and a comparison of the financial performance of the company were conducted. Findings Female directors were found to make up, on average, 18.78 per cent of the board of directors, with the majority of these women being in non-executive positions. Women representation appears to influence company performance positively when using accounting-based measures of performance (such as return on assets and return on equity), but negatively when using market-based measures (such as Tobin’s Q). The critical mass concept is also assessed and is found to have a positive effect. Originality/value These findings are of relevance to the boards of directors adhering to corporate governance requirements by challenging the role of women on the board of directors, as well as that of investors and those in practice, to understand the current status of women representation.

The moderating effects of a board of directors on FDI’s international diversification in Turkey

2015 ◽  
Vol 23 (1) ◽  
pp. 61-88 ◽  
Author(s):  
Kader Şahin ◽  
Seyfettin Artan ◽  
Seda Tuysuz
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
International Diversification ◽  
Moderating Effect ◽  
Moderating Effects ◽  
Outside Directors ◽  
Moderator Variable ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose – This paper aims to investigate the moderating effects of a board of directors on foreign direct investment (FDI)’s international diversification in Turkey. Design/methodology/approach – A sample of Turkish multinational firms with FDI was used. Two different aspects of international diversification were considered: the relationship between international diversification and financial performance and the moderating effect of board composition on the relationship between international diversification and the firm’s financial performance. Firm-level data were obtained from the Istanbul Stock Exchange in Turkey. Findings – The findings reveal that international diversification leads to better financial performance according to market-based measures. On the other hand, this study indicates that the board characteristics have a moderating effect on international diversification and financial performance. Research limitations/implications – The study is based on a sample of publicly listed firms in Turkey, and this restriction limits the generalizability of the findings. Practical implications – The internalization efforts of Turkish FDI have led to better financial performance in terms of market-based measures. The results have stated that the interest of independent outside directors is aligned with lower-risk investment decisions. Independence of independent outside directors in Turkey is interrogated by practitioners or the Capital Markets Board of Turkey. The larger board size which a moderator variable is provided, the wider shareholder value in Turkey is. Social implications – One can understand that the development of market-supporting institutions provides the support for entry to an emerging economy which is inefficient or incomplete markets and highly concentrated family ownership. Originality/value – These findings provide important implications for corporate governance and highlight the need for further research on the role of governance in firm internationalization. This study not only helps to understand how board characteristics affect the choice of international diversification decisions, but the results also allow to assess the performance implications of these choices for a particular period.

Sign in / Sign up

Export Citation Format

Share Document