Board characteristics and corporate social responsibility disclosure in the Jordanian banks

Ghabayen, Mohammad Ahid; Mohamad, Nor Raihan; Ahmad, Norsiah

doi:10.22495/cbv12i1c1art2

Cited by 40 publications

(57 citation statements)

References 103 publications

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“…Our results suggest that in financial entities, institutional directors on boards do not have an influence on CSR reporting. These findings are in line with Boussaada and Karmani (), Htay et al () and Ghabayen, Mohamad, and Ahmad (), who demonstrate that institutional directors are not associated with the disclosure of CSR issues. Our evidence suggests that institutional directors are more focused on accomplishing the interests of banks, investment institutions, insurance companies, and funds, among others, where the main goal is maximising benefits rather than improving social and environmental disclosure.…”

Section: Resultssupporting

confidence: 89%

“…Our results suggest that inside directors are employees of the firms, and thus, their main goal may be to maximise their benefits on a short horizon, in contrast with the implementation and benefits of CSR activities, which tend to be manifested over the long term (Galbreath, ). Our study also provides evidence that institutional directors do not have an influence on the CSR disclosure of financial entities, as also shown by Htay et al () and Ghabayen et al (). Moreover, this manuscript demonstrates that independent directors on boards increase CSR disclosure in the banking industry.…”

Section: Discussionsupporting

confidence: 89%

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The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

Pucheta‐Martínez

Bel‐Oms

Nekhili

2018

Sustainable Development

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This paper aims at examining the relationship between the board composition and corporate social responsibility (CSR) of a sample of listed financial entities, discussing the reasons driving these entities to disclose CSR information. We hypothesise that there is a positive association between outside (institutional and independent directors) and female directors and CSR disclosure, and a negative relationship between inside directors and CSR reporting. Our findings provide evidence that the presence of independent directors and female directors on boards promotes CSR disclosure. Moreover, the results also show that the presence of inside directors and institutional directors on boards does not have an influence on CSR reporting.Thus, our evidence suggests that board attributes, such as the presence of independent and female directors, encourage financial entities to report CSR matters, showing the effectiveness of these two corporate governance mechanisms. The paper sheds light on the influence of the board structure of financial entities on CSR disclosure.Therefore, this study contributes to past research by providing an index for measuring the CSR disclosure of financial entities and the importance of the distinction between outside and inside directors.

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Section: Resultssupporting

confidence: 89%

Section: Discussionsupporting

confidence: 89%

The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

Pucheta‐Martínez

Bel‐Oms

Nekhili

2018

Sustainable Development

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“…This suggests that 95% of companies may have at least one female director on the board. Therefore, board gender diversity is measured as a dichotomous variable equal to 1 if there was a female director on the board and 0 otherwise (Ghabayen et al, 2016;Nekhili et al, 2017;Yaseen et al, 2018).…”

Section: Independent and Control Variablesmentioning

confidence: 99%

Board Structure, Ownership Structure, and Performance of Thai Listed Companies

Chancharat¹,

Chancharat²

2019

AABFJ

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This study investigates whether board gender diversity influences corporate social responsibility (CSR) reporting in Jordan, where there are no gender board balance regulatory requirements. Data was examined from all non-financial Jordanian listed companies for the period of 2006 to 2015. This longitudinal data results in balanced panel data of 800 observations. A content analysis method was used to obtain the reporting index of CSR disclosure in the annual reports. Ordinary least square regression showed that the presence of female directors on a board has a significantly positive effect on the level of CSR reporting. The presence of female directors on the board appears to play a significant role in enhancing compliance with corporate governance best practices. These results provide motivations for companies to consider gender balance on boards. Further, these results reinforce the decision making of regulators in countries where policies have been adopted to increase female representation on corporate boards. In countries where no such regulation exists the inclusion of gender balance practices within boards of directors may increase the level of CSR reporting practices. This study can be considered as one of the few empirical studies that have evaluated the impact of board gender diversity on the level of CSR reporting in a context where there are no gender balance strategies or policies.

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“…However, the relation between institutional investors and CSR disclosure may be negative. Arora and Dharwadkar () and Ghabayen, Mohamada, and Ahmadb () show that institutional shareholding has a significant and negative effect on CSR reporting, since institutional investors may engage in opportunistic behaviours in order to enjoy private benefits; they may work together with managers and, as a consequence, may reduce the monitoring functions in their governance. Furthermore, Chava () reports that firms’ environmental issues are negatively affected by institutional ownership.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Commitment of independent and institutional women directors to corporate social responsibility reporting

Pucheta‐Martínez

Bel‐Oms

Olcina‐Sempere

2018

Business Ethics: A Eur Rev

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This paper examines how independent and institutional women directors on boards affect corporate social responsibility (hereafter CSR) reporting. Most of the previous empirical evidence has shown a linear association between female directors and CSR disclosure, but to the best of our knowledge, no research has investigated the individual effect of independent and institutional female directors on CSR reporting. Therefore, the analysis of how the disclosure of CSR information is affected by independent and institutional women directors in a separate way merits our attention. Thus, we posit that there is a nonlinear association, concretely quadratic, between independent and institutional female directors on boards and CSR reporting. Our results demonstrate that, in line with the monitoring hypothesis, as the presence of independent and institutional women directors on boards increases, the CSR disclosure improves, but when their presence on boards reaches a tipping point (20.47% and 13.32%, respectively), CSR reporting decreases, which is consistent with the collusion hypothesis. This research contributes to the existing literature on the relationship between board gender diversity and CSR disclosure by suggesting that board structures formed by institutional and independent female directors have an effect on CSR reporting. Hence, female directors play a relevant role on boards since they may influence the CSR disclosure.

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Board characteristics and corporate social responsibility disclosure in the Jordanian banks

Cited by 40 publications

References 103 publications

The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

The contribution of financial entities to the sustainable development through the reporting of corporate social responsibility information

Board Structure, Ownership Structure, and Performance of Thai Listed Companies

Commitment of independent and institutional women directors to corporate social responsibility reporting

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