Do sustainability reporting conduct and corporate governance attributes relate? Empirical evidence from China
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Author(s)Oleh PaskoLink to ORCID Index: https://orcid.org/0000-0002-6275-5885
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Li ZhangLink to ORCID Index: https://orcid.org/0000-0002-4837-8630
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Kateryna TuzhykLink to ORCID Index: https://orcid.org/0000-0001-7057-3400
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Nelia ProskurinaLink to ORCID Index: https://orcid.org/0000-0001-8674-1720
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Viktoriia GrynLink to ORCID Index: https://orcid.org/0000-0002-6758-7374
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DOIhttp://dx.doi.org/10.21511/ppm.19(4).2021.10
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Article InfoVolume 19 2021, Issue #4, pp. 110-123
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Creative Commons Attribution 4.0 International License
Adopting agency and stakeholders theories, this study aims to investigate the relationship between corporate governance attributes (board size, board independence, female directors, and CEO duality) and sustainability reporting conduct in China. The empirical analysis is based on a sample of 10,330 firm-year observations of Chinese listed companies over the period from 2015 to 2018. Data are supplied by WIND and CSMAR databases, whilst regression analysis is applied to test the hypotheses. Results indicate that board size and board independence were found to be positively associated with the sustainability reporting conduct, while female directors and CEO duality both do not have a significant effect on sustainability reporting conduct in the Chinese institutional settings. This paper advances on arguments of the agency and stakeholders theories with these findings. The larger and more independent board facilitates better monitoring of the managers, what leads to decision-making based on a more appreciation of stakeholders’ perspectives. The study is premised on the presence/absence of sustainability reporting, and it does not take into consideration the quality aspect, which can result in erroneous interpretation. The results should not be generalized as the sample was based on China’s companies for 2015–2018. This study has policy implications for managers and policymakers alike concerning designing board composition conducive to sustainability reporting conduct.
- Keywords
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JEL Classification (Paper profile tab)G34, M14, M41
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References48
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Tables8
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Figures0
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- Table 1. Prior studies on the effect of sustainability reporting conduct and corporate governance attributes*
- Table 2. Sample selection procedure
- Table 3. Description of the variables
- Table 4. Descriptive statistics
- Table 5. Correlations matrix
- Table 6. T-test results on type of property rights holder
- Table 7. T-test results on sustainability reporting conduct
- Table 8. Multiple regression results
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Inna Makarenko ,
Alex Plastun
doi: http://dx.doi.org/10.21511/afc.01(2).2017.01
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The relationship between corporate social responsibility and earnings management: accounting for endogeneity
Hyunjung Choi , Byungchul Choi ,
Jungyoon Byun
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.06
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 69-84 Views: 4587 Downloads: 537 TO CITE АНОТАЦІЯThis study examines the relationship between corporate social responsibility (CSR) and earnings management after controlling for endogeneity of CSR. Using a sample of non-financial firms listed on Korean Securities Market between 2002 and 2010, this study finds that ignoring endogeneity biases the estimated relation between CSR and earnings management. Specifically, the results show that the negative and significant relation between CSR commitment and discretionary accruals reported in the previous studies becomes insignificant. However, the negative and significant relation between CSR commitment and real activities manipulation remains significant even when the endogeneity of CSR commitment is taken into account. Therefore, this study provides evidence that proactive CSR engagement significantly affects firm’s practice of real activities manipulation, while it does not affect its practice of discretionary accruals. These results indicate that CSR commitment leads managers to be more responsible in management of operational activities than in accruals management.
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Does board composition have an impact on CSR reporting?
Patrick Velte
doi: http://dx.doi.org/10.21511/ppm.15(2).2017.02
Problems and Perspectives in Management Volume 15, 2017 Issue #2 pp. 19-35 Views: 4455 Downloads: 1718 TO CITE АНОТАЦІЯCorporate social responsibility (CSR) reporting plays a key role in management control, particularly in light of the increased demand for non-financial reporting after the financial crisis of 2008–2009. This literature review evaluates 47 empirical studies that concentrate on the influence of several board composition variables on the quantity and quality of CSR reporting. The author briefly introduces the research framework that underpins current empirical studies in this field. This is followed by a discussion of the main variables of board composition: (1) committees (audit and CSR committees), (2) board independence, (3) board expertise, (4) CEO duality, (5) board diversity (gender and foreign diversity), (6) board activity, and (7) board size. The author, then, summarizes the key findings, discusses the limitations of the existing research and offers useful recommendations for researchers, firm practice and regulators.
