Ownership types, corporate governance and corporate social responsibility disclosures

Empirical evidence from a developing country

Ibrahim Alshbili, Ahmed Elamer, Eshani Beddewela

Research output: Contribution to journalArticle

Abstract

This study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of Corporate Social Responsibility Disclosures (CSRD) in a developing country.
Multiple regression techniques are used to estimate the effect of corporate governance structures and ownership types on CSRD using a sample of Libyan oil and gas companies between 2009 and 2013. First, our results suggest that although the level of CSRD in Libya is low in comparison to its western counterparts, ownership factors have a significant positive influence on CSRD. Second, we find board meetings to have a positive impact on CSRD. However, we fail to find any significant effect of board size and presence of CSR committees on CSRD. Overall, our results support prior theoretical evidence that pressures exerted by the government and external stakeholders have a considerable influence in promoting firm-level CSRD activities, specifically as a legitimising mechanism in fragile states. First, our research is based on the annual reports and it did not examine any other reports or other mass communication mechanism that companies’ management may use to disclose CSR information. Future studies might consider disclosures in other channels, if any, such as the internet, CSR reports etc. Additionally, this research adopts the neo-institutional theory perspective. Future studies might integrate multi-theoretical lense to offer a richer basis for understanding and explaining CSRD determinants. Our research contributes to the literature by first providing additional evidence for existing studies, which suggest that on average better-governed companies are more liable to follow a more socially responsible agenda than poorly governed companies as a legitimising mechanism in fragile states. Also, our study overcomes a major weakness in existing Libyan studies, which have mainly used descriptive data.
Original languageEnglish
JournalAccounting Research Journal
Publication statusAccepted/In press - 18 Dec 2018

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Corporate Social Responsibility
Corporate governance
Empirical evidence
Disclosure
Developing countries
Ownership
Governance structure
Communication
Gas
Agenda
Neo-institutional theory
World Wide Web
Oil
Factors
Board size
Stakeholders
Multiple regression
Government
Annual reports

Cite this

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title = "Ownership types, corporate governance and corporate social responsibility disclosures: Empirical evidence from a developing country",
abstract = "This study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of Corporate Social Responsibility Disclosures (CSRD) in a developing country. Multiple regression techniques are used to estimate the effect of corporate governance structures and ownership types on CSRD using a sample of Libyan oil and gas companies between 2009 and 2013. First, our results suggest that although the level of CSRD in Libya is low in comparison to its western counterparts, ownership factors have a significant positive influence on CSRD. Second, we find board meetings to have a positive impact on CSRD. However, we fail to find any significant effect of board size and presence of CSR committees on CSRD. Overall, our results support prior theoretical evidence that pressures exerted by the government and external stakeholders have a considerable influence in promoting firm-level CSRD activities, specifically as a legitimising mechanism in fragile states. First, our research is based on the annual reports and it did not examine any other reports or other mass communication mechanism that companies’ management may use to disclose CSR information. Future studies might consider disclosures in other channels, if any, such as the internet, CSR reports etc. Additionally, this research adopts the neo-institutional theory perspective. Future studies might integrate multi-theoretical lense to offer a richer basis for understanding and explaining CSRD determinants. Our research contributes to the literature by first providing additional evidence for existing studies, which suggest that on average better-governed companies are more liable to follow a more socially responsible agenda than poorly governed companies as a legitimising mechanism in fragile states. Also, our study overcomes a major weakness in existing Libyan studies, which have mainly used descriptive data.",
keywords = "Corporate social responsibility, corporate disclosure, Neo-institutional theory, Developing Countries",
author = "Ibrahim Alshbili and Ahmed Elamer and Eshani Beddewela",
year = "2018",
month = "12",
day = "18",
language = "English",
journal = "Accounting Research Journal",
issn = "1030-9616",
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T2 - Empirical evidence from a developing country

AU - Alshbili, Ibrahim

AU - Elamer, Ahmed

AU - Beddewela, Eshani

PY - 2018/12/18

Y1 - 2018/12/18

N2 - This study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of Corporate Social Responsibility Disclosures (CSRD) in a developing country. Multiple regression techniques are used to estimate the effect of corporate governance structures and ownership types on CSRD using a sample of Libyan oil and gas companies between 2009 and 2013. First, our results suggest that although the level of CSRD in Libya is low in comparison to its western counterparts, ownership factors have a significant positive influence on CSRD. Second, we find board meetings to have a positive impact on CSRD. However, we fail to find any significant effect of board size and presence of CSR committees on CSRD. Overall, our results support prior theoretical evidence that pressures exerted by the government and external stakeholders have a considerable influence in promoting firm-level CSRD activities, specifically as a legitimising mechanism in fragile states. First, our research is based on the annual reports and it did not examine any other reports or other mass communication mechanism that companies’ management may use to disclose CSR information. Future studies might consider disclosures in other channels, if any, such as the internet, CSR reports etc. Additionally, this research adopts the neo-institutional theory perspective. Future studies might integrate multi-theoretical lense to offer a richer basis for understanding and explaining CSRD determinants. Our research contributes to the literature by first providing additional evidence for existing studies, which suggest that on average better-governed companies are more liable to follow a more socially responsible agenda than poorly governed companies as a legitimising mechanism in fragile states. Also, our study overcomes a major weakness in existing Libyan studies, which have mainly used descriptive data.

AB - This study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of Corporate Social Responsibility Disclosures (CSRD) in a developing country. Multiple regression techniques are used to estimate the effect of corporate governance structures and ownership types on CSRD using a sample of Libyan oil and gas companies between 2009 and 2013. First, our results suggest that although the level of CSRD in Libya is low in comparison to its western counterparts, ownership factors have a significant positive influence on CSRD. Second, we find board meetings to have a positive impact on CSRD. However, we fail to find any significant effect of board size and presence of CSR committees on CSRD. Overall, our results support prior theoretical evidence that pressures exerted by the government and external stakeholders have a considerable influence in promoting firm-level CSRD activities, specifically as a legitimising mechanism in fragile states. First, our research is based on the annual reports and it did not examine any other reports or other mass communication mechanism that companies’ management may use to disclose CSR information. Future studies might consider disclosures in other channels, if any, such as the internet, CSR reports etc. Additionally, this research adopts the neo-institutional theory perspective. Future studies might integrate multi-theoretical lense to offer a richer basis for understanding and explaining CSRD determinants. Our research contributes to the literature by first providing additional evidence for existing studies, which suggest that on average better-governed companies are more liable to follow a more socially responsible agenda than poorly governed companies as a legitimising mechanism in fragile states. Also, our study overcomes a major weakness in existing Libyan studies, which have mainly used descriptive data.

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