Does persistence explain ESG disclosure decisions?

McBrayer, Garrett A.

doi:10.1002/csr.1521

Cited by 91 publications

(70 citation statements)

References 62 publications

(111 reference statements)

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“…In deciphering the impact of board gender diversity on corporate sustainability practices, we consider ESG score as a dependent variable. This score relates to three fundamental dimensions: environmental, social and governance, and it has also the merit of capturing firm disclosure activity adjusted for the disclosure activity of firms operating in the same industry [75]. In each dimension, the score ranged from 0 to 100, the highest value representing the highest level of corporate sustainability.…”

Section: Empirical Specificationmentioning

confidence: 99%

ESG (Environmental, Social and Governance) Performance and Board Gender Diversity: The Moderating Role of CEO Duality

et al. 2020

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According to the 2030 Agenda, gender equality plays a central role in achieving social development, expanding economic growth and improving business performance. From this perspective, many studies claim that a more balanced presence of women on Board of Directors (BoD) could have a positive impact on firms’ financial performance, but the effect of such diversity on sustainability performance is still underexplored. The purpose of this paper is to investigate how gender composition of BoD affects the corporate sustainability practices. In particular, we focused on the relationship between board gender composition and ESG (Environmental, Social and Governance) performance, by verifying if and to what extent there is a moderation effect due to the presence of CEO duality. We used the ESG index, provided by Bloomberg Data Service, as a proxy of sustainability performance and the Blau index as a measure of gender diversity in the BoD. The empirical analysis was carried out on a sample of Italian non-financial companies listed on Mercato Telematico Azionario (MTA) and includes a total of 128 observations. Results has shown that a greater gender diversity on BoD has an overall positive influence on ESG performance, while CEO duality negatively moderates the foregoing relationship.

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Section: Empirical Specificationmentioning

confidence: 99%

ESG (Environmental, Social and Governance) Performance and Board Gender Diversity: The Moderating Role of CEO Duality

et al. 2020

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“…Limited studies on CEO tenure have investigated effects other than earnings management, such as audit fees, industry specialist auditors, and board monitoring [7,9,10,18]. Also, only a limited number of studies have considered CEO tenure in studying its impact on corporate social responsibility (hereafter, CSR); however, except for one recent paper [19], researchers have instead focused on different aspects (CEO power [20,21] or CSR disclosure [22]).…”

Section: Introductionmentioning

confidence: 99%

CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

2019

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The purpose of this study was to examine the association between Chief Executive Officer (CEO) tenure and corporate social performance with the moderating effect of governance. We investigated whether new CEOs and CEOs in their last year of service were more focused on short-termism than CEOs of other periods. Specifically, we tested whether these CEOs reduced social performance that demands immediate expenditure and expect payoffs in the long run. We also tested whether good governance can mitigate such behaviors, because not all CEOs of the same tenure will act the same, depending on the monitoring environments surrounding them. We employed ordinary least squares (OLS) method and the moderator models using data from the Korean listed companies from 2012 to 2016. Test results showed that only the CEOs of their last year reduced social performance. However, when we considered corporate governance, we found that both groups of CEOs reduced social performance, and that good governance mitigated the adverse effects of the two periods on Corporate Social Responsibility (CSR). Specifically, we tested board independence, board frequency, CEO duality, and board diversity, and found that, for all but board independence, the negative effects of the two periods on social performance were decreased.

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“…Corporate social responsibility scores exhibit some degree of intertemporal persistence (Dhaliwal et al, 2011;McBrayer, 2018). To ensure that our results are not merely an artifact of invariability of within-firm CSR scores, we conduct a series of tests using a change specification framework.…”

Section: Csr Disclosure and Equity Market Liquidity: Multivariate Rmentioning

confidence: 99%

Does it pay to be forthcoming? Evidence from CSR disclosure and equity market liquidity

Egginton

McBrayer

2018

Corp Soc Responsibility Env

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We examine the impact of corporate social responsibility (CSR) disclosure strategies on equity market liquidity. Using data on CSR disclosure from Bloomberg, we find that equity market liquidity improves as firms increase their CSR disclosure transparency.Specifically, firms with more transparent CSR disclosure strategies have narrower spreads and exhibit improvements in common measures of equity market liquidity.Additionally, we document that improvements in equity market liquidity occur contemporaneously with changes in firms' CSR disclosure strategies, suggesting that markets respond to the transparent disclosure of CSR initiatives without necessarily knowing the ultimate efficacy of the initiative itself. We condition our findings on firm transparency and provide evidence that CSR disclosure transparency acts to reduce information asymmetry, thus acting as the mechanism to improve equity market liquidity. Overall, our results suggest that CSR disclosure transparency leads to reductions in asymmetric information, ultimately making financial markets more equitable. KEYWORDScorporate social responsibility, equity market liquidity, financial market equality, information asymmetry, voluntary disclosure

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Does persistence explain ESG disclosure decisions?

Cited by 91 publications

References 62 publications

ESG (Environmental, Social and Governance) Performance and Board Gender Diversity: The Moderating Role of CEO Duality

ESG (Environmental, Social and Governance) Performance and Board Gender Diversity: The Moderating Role of CEO Duality

CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

Does it pay to be forthcoming? Evidence from CSR disclosure and equity market liquidity

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