Journal of Business Ethics

, Volume 125, Issue 1, pp 59–73

Corporate Governance Quality and CSR Disclosures

  • MuiChing Carina Chan
  • John Watson
  • David Woodliff
Article

Abstract

Given the increasing importance attached to both corporate social responsibility (CSR) and corporate governance, this study investigates the association between these two complimentary mechanisms used by companies to enhance relations with stakeholders. Consistent with both legitimacy and stakeholder theory and controlling for industry profile, firm size, stockholder power/dispersion, creditor power/leverage, and economic performance, our analysis of the annual reports for a sample of 222 listed companies suggests that firms providing more CSR information: have better corporate governance ratings; are larger; belong to higher profile industries; and are more highly leveraged. Our findings support the limited prior research suggesting a link between corporate governance quality and CSR disclosure in company annual reports and suggest that, rather than mandating specific disclosures, regulators might be better served focussing on corporate governance quality as a way of increasing CSR disclosures.

Keywords

Corporate governance CSR disclosure Stakeholder theory Legitimacy theory 

Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  • MuiChing Carina Chan
    • 1
  • John Watson
    • 1
  • David Woodliff
    • 1
  1. 1.Accounting & FinanceThe University of Western AustraliaCrawleyAustralia

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