The impact of board characteristics on corporate social responsibility disclosures: evidence from state-owned enterprises in Kenya
The impact of board characteristics on corporate social responsibility disclosures: evidence from state-owned enterprises in Kenya
Purpose
To investigate the impact of board characteristics (board gender diversity, board chair age, board subcommittees, board meetings, board skill, board size and board independence) on corporate social responsibility disclosures (CSRD) of state-owned enterprises (SOEs) in Kenya during the period 2015–2018.
Design/methodology/approach
The study employed fixed-effects balanced panel data to examine the impact of board characteristics on CSRD. The analysis is repeated using two regression estimators (robust least square and random effects) and the four CSRD subcomponents to evaluate the robustness of the main analysis.
Findings
The results established that board gender diversity, board chair age and board subcommittees had significant negative effects on CSRD. The impact of the remaining board characteristics was found to be insignificant.
Research limitations/implications
The study was limited to the disclosures included in the annual reports, which means that information disclosed in other media, like websites, was not considered. The second limitation concerns mediating and moderator variables that were not considered.
Practical implications
There is a need for a stricter corporate governance implementation mechanism, as opposed to the “comply or explain” principle, since results suggest that most of the board characteristics do not appear to be impactful. Additionally, the low level of reported CSRD calls for the establishment of Corporate Social Responsibility or related committees.
Social implications
The evidence suggests that SOEs are reluctant to report on issues such as ethics, health and safety initiatives, environment and social investments.
Originality/value
The paper extends the literature on the impact of board characteristics on CSRD in unlisted non-commercial SOEs in a developing country context.
Corporate social responsibility disclosures, Kenya, Multi-theoretical framework, Mwongozo code of corporate governance, State-owned enterprises
Abang'a, Albert Ochien'g
77bc4658-fd5c-4d29-ace2-3c79ed8c0b10
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
1 August 2023
Abang'a, Albert Ochien'g
77bc4658-fd5c-4d29-ace2-3c79ed8c0b10
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Abang'a, Albert Ochien'g and Tauringana, Venancio
(2023)
The impact of board characteristics on corporate social responsibility disclosures: evidence from state-owned enterprises in Kenya.
Journal of Accounting in Emerging Economies.
(doi:10.1108/JAEE-01-2022-0008).
Abstract
Purpose
To investigate the impact of board characteristics (board gender diversity, board chair age, board subcommittees, board meetings, board skill, board size and board independence) on corporate social responsibility disclosures (CSRD) of state-owned enterprises (SOEs) in Kenya during the period 2015–2018.
Design/methodology/approach
The study employed fixed-effects balanced panel data to examine the impact of board characteristics on CSRD. The analysis is repeated using two regression estimators (robust least square and random effects) and the four CSRD subcomponents to evaluate the robustness of the main analysis.
Findings
The results established that board gender diversity, board chair age and board subcommittees had significant negative effects on CSRD. The impact of the remaining board characteristics was found to be insignificant.
Research limitations/implications
The study was limited to the disclosures included in the annual reports, which means that information disclosed in other media, like websites, was not considered. The second limitation concerns mediating and moderator variables that were not considered.
Practical implications
There is a need for a stricter corporate governance implementation mechanism, as opposed to the “comply or explain” principle, since results suggest that most of the board characteristics do not appear to be impactful. Additionally, the low level of reported CSRD calls for the establishment of Corporate Social Responsibility or related committees.
Social implications
The evidence suggests that SOEs are reluctant to report on issues such as ethics, health and safety initiatives, environment and social investments.
Originality/value
The paper extends the literature on the impact of board characteristics on CSRD in unlisted non-commercial SOEs in a developing country context.
Other
PDF_Proof
- Accepted Manuscript
More information
Accepted/In Press date: 2 July 2023
e-pub ahead of print date: 1 August 2023
Published date: 1 August 2023
Additional Information:
Publisher Copyright:
© 2023, Emerald Publishing Limited.
Keywords:
Corporate social responsibility disclosures, Kenya, Multi-theoretical framework, Mwongozo code of corporate governance, State-owned enterprises
Identifiers
Local EPrints ID: 481079
URI: http://eprints.soton.ac.uk/id/eprint/481079
ISSN: 2042-1168
PURE UUID: 11da5e30-7274-426a-b4b0-ef5aa59d0371
Catalogue record
Date deposited: 15 Aug 2023 16:44
Last modified: 18 Mar 2024 03:09
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Contributors
Author:
Albert Ochien'g Abang'a
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