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Board diversity and CSR reporting: an Australian study

Author

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  • Kathyayini Rao
  • Carol Tilt

Abstract

Purpose - This paper aims to examine the relationship between corporate governance, in particular board diversity, and corporate social responsibility (CSR) reporting among the top 150 listed companies in Australia over a three-year period. Design/methodology/approach - The quantitative analysis involving a longitudinal study is used where content analysis is undertaken to analyse the extent of CSR disclosures in annual reports. Regression analysis using panel data is used to analyse the potential association between CSR disclosure and five important board diversity measures, specifically independence, tenure, gender, multiple directorships and overall diversity measure. Findings - The results based on the regression analysis reveal that three of the board diversity attributes (gender, tenure and multiple directorships) and the overall diversity measure have the potential to influence CSR reporting. The relationship between independent/non-executive directors and CSR disclosure however is unclear. In addition, three of the control variables (firm size, industry and CEO duality) are found to have some influence on CSR disclosure, whereas board size and profitability are found to be insignificant. The results also indicate the existence of some possible interaction effects between gender and multiple directorships. Originality/value - The paper has implications for companies, for policymakers and for the professional development needs of board members. Australian companies should consider identifying board attributes that enhance CSR disclosures, as it has been shown in previous studies that CSR disclosure in Australia is low when compared to other developed countries. Moreover, given that there is such limited research linking board diversity and CSR disclosure, the results of this paper provide scope for further research. Moreover the paper contributes to the existing literature on board composition and CSR disclosure by extending the literature to board diversity and provides preliminary evidence of the influence of board diversity on CSR disclosure in Australia.

Suggested Citation

  • Kathyayini Rao & Carol Tilt, 2016. "Board diversity and CSR reporting: an Australian study," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 24(2), pages 182-210, June.
    • Handle: RePEc:eme:medarp:v:24:y:2016:i:2:p:182-210
    DOI: 10.1108/MEDAR-08-2015-0052
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    Citations

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    Cited by:

    1. Luigi Lepore & Loris Landriani & Sabrina Pisano & Gabriella D’Amore & Stefano Pozzoli, 2023. "Corporate governance in the digital age: the role of social media and board independence in CSR disclosure. Evidence from Italian listed companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(3), pages 749-785, September.
    2. Alessandra Centinaio, 2024. "How gender diversity in boards affects disclosure? A literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2352-2382, May.
    3. Nurshahirah Abd Majid & Amar Hisham Jaaffar & Raed Hussam Mansour Alzoubi, 2023. "The Impact of Women’s Role in Corporate Governance on Carbon Disclosure Performance: A Descriptive Study of Top 100 Global Energy Leaders," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 404-417, November.
    4. Jibriel Elsayih & Rina Datt & Qingliang Tang & Ali Hamid & Maria Estela Varua, 2023. "Exploring the determinants of carbon management system quality: The role of corporate governance and climate risks and opportunities," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4065-4091, December.
    5. Truc (Peter) Do & Kathleen Herbohn, 2024. "The impact of board ethnic diversity and Chief Executive Officer role on corporate social responsibility," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(1), pages 575-605, March.
    6. Akshita Arora & Khaoula Aliani, 2024. "Nexus between corporate environmental disclosures and gender diversity: Interaction effects of board independence," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1113-1128, February.
    7. Anjali Kaimal & Shigufta Hena Uzma, 2024. "CSR and ownership structure: Moderating role of board characteristics in an emerging country context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4933-4955, September.
    8. Ivy Eklemet & Ibrahim Mohammed & Emmanuel Gyamera & Deborah Adu Twumwaah, 2023. "Moderating Role of Board Size between the Board Characteristics and the Bank s Performance: Application of GMM," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 145-157, May.
    9. Ashesha Weerasinghe & Larelle (Ellie) Chapple & Alexandra Williamson, 2024. "Cultural diversity and Indigenous participation on Australian corporate boards: Harder but better decisions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(1), pages 221-246, March.
    10. Priti Yadav & Anshul Jain, 2023. "Sustainability disclosures and corporate boards: a stakeholder approach to decision-making," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 24(5), pages 1027-1047, April.
    11. Thanya Weerasinghe & Dileepa Samudrage & Nuwan Gunarathne, 2023. "The influence of top management team diversity on Sustainable Development Goals (SDG) reporting: Evidence from Sri Lanka," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5922-5934, December.
    12. Mariasole Bannò & Emilia Filippi & Sandro Trento, 2023. "Women in top echelon positions and their effects on sustainability: a review, synthesis and future research agenda," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 181-251, March.
    13. Mehmood, Asad & De Luca, Francesco & Quach, Hao, 2023. "Investigating how board gender diversity affects environmental, social and governance performance: Evidence from the utilities sector," Utilities Policy, Elsevier, vol. 83(C).
    14. Andreani Hanjani & Rr. Karlina Aprilia Kusumadewi, 2023. "Environmental performance and financial performance: Empirical evidence from Indonesian companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1508-1513, May.

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