Board of director diversity, corporate social responsibility disclosure and firm performance in Malaysia (IR)
This study aims to determine whether board diversity influence the quality of Corporate Social Responsibility (CSR) disclosure. Board diversity in this study refers to heterogeneity in board gender, education level, education background, age, ethnic, tenure and nationality. This study also aims to e...
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| Format: | thesis |
| Language: | eng |
| Published: |
2017
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=335 |
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| Summary: | This study aims to determine whether board diversity influence the quality of Corporate Social Responsibility (CSR) disclosure. Board diversity in this study refers to heterogeneity in board gender, education level, education background, age, ethnic, tenure and nationality. This study also aims to examine the effect of quality of CSR disclosure on firm performance. In addition, it investigates whether quality of CSR disclosure mediate the relationship between board diversity and firm performance. Agency theory has been employed to support the linkage among board diversity, CSR disclosure and firm performance. The data was collected from annual reports of 200 selected companies listed in Bursa Malaysia from 2009 to 2013. Endogeneity problems had been remedied using twostage least square. The results show that board diversity in education level and tenure positively influence the quality of CSR disclosure; gender, education background and ethnic diversity are insignificant on quality of CSR disclosure while age and nationality diversity show negative influence on the quality of CSR disclosure. The results suggest that board diversity does matter to quality of CSR disclosure and well balanced board is important in obtaining benefit from practicing board diversity agenda. Another finding revealed that quality of CSR disclosure was positively significant in affecting the firm performance. It was also found that quality of CSR disclosure mediated the relationship between board diversity (i.e education level, age, tenure and nationality) and firm performance. This indicates advantages for companies that produce a high quality of CSR disclosure and enable them to gain investors confidence. The implication of this study provide insights to the implementation of the policy on board diversity and CSR disclosure in Malaysia. |
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