Board of directors, COVID-19, and corporate social responsibility monetary performance: direct and interaction effects analysis
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 18 December 2023
Abstract
Purpose
This study aims to provide archival evidence on the impact of board characteristics on corporate social responsibility (CSR) monetary performance and how they interact with the COVID-19 pandemic in the context of CSR monetary performance.
Design/methodology/approach
This study analyzes listed companies in Oman’s capital market from 2016 to 2021, using pooled ordinary least squares and unique CSR performance measures such as budgeting and spending.
Findings
The study finds that companies with more expertise and frequent meetings are more likely to allocate a larger budget for CSR activities. However, this does not apply to larger boards or to independent directors. During the COVID-19 pandemic, the effect of independent directors on CSR budgeting and spending is more pronounced, and boards with more expertise and meetings show a negative interaction with the pandemic. The interaction of board characteristics with COVID-19 in terms of CSR monetary performance varies depending on company size. Board independence and expertise show a significant reaction to COVID-19 infection and death cases when setting CSR budgeting and spending.
Research limitations/implications
The findings of this study are stimulating, but stem from an emerging country with unique cultural and institutional characteristics. Methodological issues were also encountered during the analysis, so readers should exercise caution when applying the results to other settings.
Practical implications
This study highlights board involvement in deciding a company’s CSR investment, as it was believed that chief executive officers are considered responsible for CSR activities. Additionally, this research underscores the significance of incorporating the financial aspects of CSR into reporting.
Originality/value
This study examines the seldom explored relationship between corporate boards and CSR monetary aspects during regular and irregular times, offering theoretical and practical insights that benefit multiple stakeholders.
Keywords
Acknowledgements
The authors extend the authors’ appreciation to the Deanship of Scientific Research at King Khalid University for funding this work through Larg Groups Project under grant number RGP.2/480/44.
Funding: The authors declare that this paper is funded by the Deanship of Scientific Research at King Khalid University.
Availability of data and material: Research data are publicly available in sources identified in the text.
Conflicts of interest statement: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
Citation
Baatwah, S.R., Bajaher, M. and Asiri, M. (2023), "Board of directors, COVID-19, and corporate social responsibility monetary performance: direct and interaction effects analysis", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-07-2023-0430
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited