Corporate governance and the quality of CSR disclosure: lessons from an emerging economy

Abstract

Purpose

This paper is motivated by the absence of rules that govern the practice of corporate social responsibility disclosure (CSRD). The purpose of this paper is to investigate the corporate governance factors that impact the quality of CSRD. This study further examines the moderating role of family ownership and educational qualifications of female directors on the relation between board gender diversity and CSRD quality.

Design/methodology/approach

This study adopts a sample of 94 non-financial companies listed on the Amman Stock Exchange to collect data on CSRD based on a checklist of 41 items for seven years from 2010–2016. The quality of CSRD is measured using a four-dimensional method that encompasses relative quantity, disclosure intensity, degree of accuracy and management outlook.

Findings

This study finds that CSRD quality is far from satisfactory in Jordan. The results also suggest that board size, auditor type, company size and profitability are positively associated with CSRD quality. On the other hand, factors such as chief executive officer duality, board diversity, ownership concentration and financial leverage are negatively associated with CSRD quality. In addition, the results of the empirical analysis suggest that the negative relationship between the quality of CSRD and the presence of female board members is stronger for family-owned companies. By contrast, the negative relationship between the quality of CSRD and the presence of female board members is weakened when the company has more educated, skilled and qualified female directors.

Originality/value

The originality of this study is manifested in the development of a quantitative measurement of CSRD quality.

Citation

Ananzeh, H. (2022), "Corporate governance and the quality of CSR disclosure: lessons from an emerging economy", Society and Business Review, Vol. 17 No. 2, pp. 280-306. https://doi.org/10.1108/SBR-09-2021-0153