Board diversity and corporate social responsibility in Jordan

Abstract

Purpose This study aims to investigate the impact of board diversity characteristics, namely, independence, gender, age and nationality of directors on the level of corporate social responsibility (CSR) disclosures. Design/methodology/approach Content analysis was used to determine CSR disclosure. This study used panel data analysis to investigate the influence of board diversity characteristics on CSR disclosures. Findings Panel data analysis show that the level of CSR disclosure has increased over the period of study. Results also reveal a positive and significant association between the level of CSR disclosure and board diversity variables. Research limitations/implications This study examined only companies listed on Amman Stock Exchange. Therefore, the generalisation of the results might be limited to the listed companies only. Practical implications Findings are relevant to policymakers, professional organisations and practitioners in Jordan and in other Arab countries. Social implications The role of women in the boardroom is important to ensure more CSR activities by the listed companies. Jordan being a Muslim country should take the initiative to introduce laws to increase the number of women to the board. Originality/value This study offers significant contributions to existing CSR literature in Jordan and in other Arab countries by introducing female directors. Findings are important to policymakers. They should implement quotas for women in the boardroom, and adopting such a policy will increase the participation of women in the decision-making process of the companies and reduce gender bias.

Board Diversity and Accounting Conservatism: Evidence from Jordan

“…The average female board member is 3% percent, with a minimum value of zero and a maximum value of 56 percent. This finding supports the figures reported by previous works done in Jordan such as Ibrahim and Hanefah (2016) and Al-Rahahleh (2017). But, this finding is lower than that reported in previous studies such as Garcí a-Sá nchez et al (2017) in Spain who found that 10% of board seats under dominance female.…”

“…Regarding the average age, the findings report that the average directors' age is approximately 52.8 years, with a maximum age of (71) years, and a minimum of (35) year, this finding is consistent with Sartawi et al (2014) who found that the average age of directors is 57 years. Moreover, the average young members is around (12 %) (Younger than 40, as suggested by Ibrahim and Hanefah (2016), this implies that most of board members in Jordan are elderly.…”

“…Related literature about female on the board in Jordan is still limited. For instance, previous studies (e.g., Qasem & Abdullatif, 2014;Ibrahim & Hanefah, 2016) concluded that the Jordanian private sector's suffers from discrimination against female in leadership and accounting-related positions due to the Jordanian society characteristics and Islamic conditions. Previous studies (e.g., Mohan & Chen, 2004;Huang & Kisgen, 2013) examined whether female managers have an influence on different company decisions, such as financing, investment and acquisitions.…”

“…Appointment of foreign directors enhances the quality of the decision-making in the board (Ibrahim & Hanefah, 2016), because the foreign members bring diverse ideas and perspectives, such as language, life experiences, culture, behaviours, and laws of the region, which in turn improves the decision-making approach (Ruigrok et al, 2007;Ibrahim & Hanefah, 2016). "Resource dependence theory indicates that foreign members provide extra value to the board and firm through having different skills and experiences.…”

“…Numerous previous studies have used this variable as an independent variable (e.g., Darmadi, 2011;Ibrahim & Hanefah, 2016).…”