Board’s financial expertise and corporate social responsibility disclosure in China
ISSN: 1472-0701
Article publication date: 10 February 2021
Issue publication date: 26 May 2021
Abstract
Purpose
This study aims to investigate the impact of the board’s financial expertise (BFE) on corporate social responsibility (CSR) disclosure in China.
Design/methodology/approach
Using a sample of Chinese listed firms from 2009-2016 (making 3272 firm-year observations), this study uses the generalized method of moments (GMM) and panel data estimation techniques.
Findings
Using the resource dependence theory, the findings of this study are twofold. First, the is positively associated with the disclosure level of CSR. Second, this positive impact is more pronounced in firms with female CEO and state ownership. The findings are robust to the potential issues of endogeneity and sensitivity analyses.
Practical implications
Practically, the findings hold value for the senior management of Chinese firms to ensure the presence of financial experts in boards to yield both financial and non-financial outcomes.
Social implications
This study points out how financial experts on boards influence the societal outcomes via disclosure of CSR. Financial experts encourage participation in social and sustainable practices which creates a positive image of the firm not only in the eyes of society but also for investors.
Originality/value
This study is unique and contributes to the extant literature by examining the impact of a new attribute, i.e. the BFE on the level of CSR disclosure in China.
Keywords
Acknowledgements
This research was supported by the “Funds for High-Level Talents of Xijing University (2019)”, Grant/Award Number: XJ19B02.
Citation
Naheed, R., AlHares, A., Shahab, Y. and Naheed, R. (2021), "Board’s financial expertise and corporate social responsibility disclosure in China", Corporate Governance, Vol. 21 No. 4, pp. 716-736. https://doi.org/10.1108/CG-08-2020-0329
Publisher
:Emerald Publishing Limited
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