The effect of board diversity on CSR decoupling
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2023-07-13
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en
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This study aims to examine the effect of board diversity on CSR decoupling. A panel data set covering 6 years (2016-2021) for Dutch firms included in the Refinitiv database is used. CSR decoupling is measured based on an adapted method based on the method of Hawn & Ioannou (2016) for the variable CSR decoupling after 2016. Fixed effects regression models are used to investigate the effects of Board Gender Diversity (BGD), Board Age Diversity (BAD), Board Nationality Diversity (BND), and Total Board Diversity (TBD) on CSR decoupling, using two different measures of CSR decoupling: CSR_Decoupling and CSR_Decoupling_lag. The hypotheses expect a negative effect of BGD, BAD, BND, and TBD on CSR decoupling. The results provide mixed support for the hypotheses. BGD, BAD, and BND have no significant effects on CSR_Decoupling. However, BAD has a significant negative effect on CSR_Decoupling_lag, supporting H2. This indicates that a more age-diverse board is associated with a decrease in CSR decoupling (when internal CSR actions are lagged with 1 year). However, the effects of BGD and BND on CSR_Decoupling_lag are also insignificant. TBD has a positive and significant effect on CSR_Decoupling, so H4 is not supported, indicating that firms with more diverse boards were more likely to decouple their CSR actions. However, the of TBD on CSR_Decoupling_lag is insignificant. This paper provides insights into the relationship between CSR decoupling and board diversity based on a Dutch sample. These insights can be valuable for board members, policymakers, and stakeholders.
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Faculteit der Managementwetenschappen