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The Importance of Emerging Industries: The Case of Biopharma Read chapter Read first chapter

2020 | OriginalPaper | Chapter

Corporate Governance as a Corporate Social Responsibility Reporting Determinant

Author : Triinu Tapver

Published in: Eurasian Economic Perspectives

Publisher: Springer International Publishing

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Abstract

Bank failures following the 2008 global financial crisis have increased the pressure for banks to integrate corporate social responsibility (CSR) in their core business. One manifestation of this pressure is the increased focus on CSR reporting of banks. Considering this, the objective of this paper is to determine the association between corporate governance characteristics and CSR reporting of listed banks. Logistic regressions with bank-specific fixed effects are run on a global sample of 285 listed commercial banks from 35 countries. The analysis covers a period from 2005 to 2015. The results show that board size and gender diversity are positively associated with banks’ CSR disclosure decisions. After controlling for CSR commitment indicators, the presence of CSR Committee, joining Global Compact, and joining the Equator Principles exhibited a strong positive association with CSR disclosure. This indicates that diverse boards and formal CSR structures could lead banks to disclosing a CSR report. Thus, by properly influencing these indicators, for example, through some formal governance requirements, CSR reporting could be improved.

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Footnotes
1
There exist two papers by Chih et al. (2010) and Wu and Shen (2013) which have focused on the proxies of banks’ CSR performance on broader samples.
 
2
Based on Global Industry Classification Standard, all companies with industry group 4010 were used. The initial sample covered 1140 to 1530 banks per year.
 
3
The only countries which are represented by more than ten banks per year are the USA and Japan. However, the proportion of their assets from those of the whole sample remains even on average 0.5 percentage points lower than in the whole population of listed banks in selected countries.
 
4
The principal component analysis of the five ratios provided above 1 eigenvalue only for the first component which explained 33% of the variance. The coefficients for the variables in the first component were as follows: e/ta 0.47, l/ta − 0.46, pe/ta 0.36, roa 0.44, and liq/ta 0.50. The suitability of using these variables for the principal component analysis was supported by the Keiser-Meyer-Ohlin test.
 
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Metadata
Title
Corporate Governance as a Corporate Social Responsibility Reporting Determinant
Author
Triinu Tapver
Copyright Year
2020
Book
Eurasian Economic Perspectives

Print ISBN: 978-3-030-48530-6

Electronic ISBN: 978-3-030-48531-3

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-48531-3_8