Work

Does a Foreign Board Improve Corporate Social Responsibility?

Year: 2021

Type: article

Abstract: This study examines the effect of foreign boards on corporate social responsibility, exploring the issues of two-tier board systems (boards of directors and boards of commissioners). Using data for manufacturing firms listed on the Indonesia Stock Exchange over the sample period of 2017–2019, the results suggest that a foreign board engages more in corporate social responsibility activities. Our key finding remains robust with respect to all foreign board measures (foreign ownership, foreign board members, foreign directors, foreign commissioners, foreign CEO, and foreign chairperson) and to alternative estimation methods, and pass a series of endogeneity checks. We established the causal effect from foreign boards to CSR, supporting institutional theory and contesting agency theory.

Source: Sustainability

DOI: 10.3390/su132011473

Authors: Doddy Setiawan, Rayenda Khresna Brahmana, Andi Asrihapsari, Siti Maisaroh

Institutions: Sebelas Maret University, University of Bahrain

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,052

Funder: Kementerian Pendidikan dan Kebudayaan