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CSR Disclosure: The IPO Case

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  • Mar Arenas-Parra

    (Department of Quantitative Economics, Faculty of Economics and Business, University of Oviedo, 33003 Oviedo, Spain)

  • Susana Álvarez-Otero

    (Department of Business Administration, Faculty of Economics and Business, University of Oviedo, 33003 Oviedo, Spain)

Abstract

Corporate social responsibility (CSR) is one of the pillars of sustainable development. It is the key to operationalizing the strategic role of business in contributing towards the sustainability process. The fact that firms communicate their activities about economic sustainability, environmental sustainability, and social equity shows their commitment to society and their stakeholders. This paper analyzes the influence exerted by the composition of boards of directors on corporate social responsibility disclosure with reference to those companies that undertook an initial public offerings (IPO) in the Spanish capital market during the period 1998–2013. The empirical evidence provided by this study shows that ownership structure and board characteristics are relevant in the context of a firm’s CSR disclosure. The independent directors, non-executive directors, and large shareholder representatives affect the way in which their companies voluntarily disclose information regarding CSR. Our results lend support for a non-linear relationship between the proportion of shares in the IPO belonging to the members of the board of directors and the level of CSR reporting. We also find that the underwriter’s reputation has a positive and statistically significant influence on CSR disclosure for Spanish IPOs.

Suggested Citation

  • Mar Arenas-Parra & Susana Álvarez-Otero, 2020. "CSR Disclosure: The IPO Case," Sustainability, MDPI, vol. 12(11), pages 1-22, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:11:p:4390-:d:363615
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    References listed on IDEAS

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    2. Rumeng Cui & Zhong Ma & Longfeng Wang, 2022. "Allocation of Decision Rights and CSR Disclosure: Evidence from Listed Business Groups in China," Sustainability, MDPI, vol. 14(7), pages 1-20, March.

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