Sustainability performance and the quality of sustainability disclosures. The moderating effects of board composition and the influence of ownership structures.
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Management is the ultimate decision maker of CSR disclosure decisions, but they are influenced by the board of directors and the owners of the company. This study examines to what extent board composition moderates and ownership structures influence the relationship between sustainability performance (CSP) and the quality of sustainability reports. More specifically, the effects of board independence, board diversity and the effects of the following ownership structures: management, government and institutional ownership. Board independence is measured as CEO duality and independence of all board members. Board diversity is measured as age diversity, gender diversity and the ratio of women. Using a sample of companies from 36 countries that published a CSR report between 2011 and 2016, the results indicate a positive relationship between CSP and the quality of CSR disclosures. The results shows that an independent board of directors moderates the positive relationship between the social sustainability performance and the quality of CSR disclosures. No significant results were found that show an influence of board diversity and CEO duality on the relationship between CSP and the quality of CSR disclosures. There were also no significant results that show an influence of ownership structures on the relationship between CSP and the quality of CSR disclosures.
Faculteit der Managementwetenschappen