Board directors’ home regions and social disclosure: evidence from french firms listed in SBF 120

This chapter examines the impact of directors' home regions on employee human rights policy (EHRP) disclosure in the French context. We classify foreign directors into four home regions, namely, Anglo-American, European, Asian, and Middle Eastern regions. Logistic regression analyses are conducted, referring to a sample of 73 French firms that were listed on the Euronext Paris Stock Exchange and members of the SBF 120 index over the period from 2008 to 2018. EHRP disclosure data are collected from the Bloomberg database and indicate whether the firm has disclosed EHRP information in its annual report or CSR statement. Results provide evidence that board home region diversity is positively and significantly associated with EHRP disclosure. Results also show that the presence of Anglo-American and Asian directors is positively associated with EHRP disclosure. Surprisingly, European directors are less concerned about EHRP disclosure. Furthermore, we provide evidence that there is no relationship between the presence of directors from the Middle East and EHRP disclosure. The chapter highlights the need to reconsider the composition of French boards by promoting the presence of directors from different home regions. Specifically, the authors support the recommendations of the AFEP-MEDEF (2020) regarding the need to intensify international recruitment when selecting new board members.