CEO power and corporate social responsibility (CSR) disclosure: does stakeholder influence matter?
Article
Article Title | CEO power and corporate social responsibility (CSR) disclosure: does stakeholder influence matter? |
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ERA Journal ID | 19111 |
Article Category | Article |
Authors | Rashid, Afzalur (Author), Shams, Syed (Author), Bose, Sudipta (Author) and Khan, Habib (Author) |
Journal Title | Managerial Auditing Journal |
Journal Citation | 35 (9), pp. 1279-1312 |
Number of Pages | 34 |
Year | 2020 |
Place of Publication | United Kingdom |
ISSN | 0268-6902 |
1758-7735 | |
Digital Object Identifier (DOI) | https://doi.org/10.1108/MAJ-11-2019-2463 |
Web Address (URL) | https://www.emerald.com/insight/content/doi/10.1108/MAJ-11-2019-2463/full/html |
Abstract | Purpose – This study examines the association between Chief Executive Officer (CEO) power and the level of corporate social responsibility (CSR) disclosure, as well as the moderating role of stakeholder influence on this association. Design/methodology/approach – Using a sample of 986 Bangladeshi firm-year observations, this study uses a content analysis technique to develop a 24-item CSR disclosure index. The ordinary least squares regression method is used to estimate the research models, controlling for firm-specific factors that potentially affect the levels of CSR disclosure. Findings – The study findings indicate that CEO power is negatively associated with the level of CSR disclosure, and that the negative effects of CEO power on the level of CSR disclosure are attenuated by stakeholder influence. CEO power is documented as reducing the positive impact of CSR disclosure on a firm’s financial performance, with this negative impact attenuated if stakeholders have greater influence on the firm. Practical implications – This study suggests that CEO power and stakeholder influence are important factors in determining firms’ incentives to disclose CSR information. Both CEO power and stakeholder influence need to be considered in the CSR – firm performance nexus, given the mixed findings documented in the literature. Originality/value – This study makes a significant contribution to the literature on CSR practices by documenting that firms with a powerful CEO have lower levels of CSR disclosure, and that stakeholder influence affects CSR disclosure in the emerging economy context. |
Keywords | emerging economy, corporate social responsibility (CSR), stakeholder theory, CEO power |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 350107. Sustainability accounting and reporting |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Institution of Origin | University of Southern Queensland |
Byline Affiliations | School of Commerce |
University of Newcastle | |
University of Canberra |
https://research.usq.edu.au/item/q5y4v/ceo-power-and-corporate-social-responsibility-csr-disclosure-does-stakeholder-influence-matter
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