Board directors' home regions and CSR disclosure: evidence from France

Autor: Nadia Ben Farhat Toumi, Yosra Fourati Makni, Rim Khemiri
Přispěvatelé: Université d'Évry-Val-d'Essonne (UEVE), Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) (LITEM), Université d'Évry-Val-d'Essonne (UEVE)-Université Paris-Saclay-Institut Mines-Télécom Business School (IMT-BS), Institut Mines-Télécom [Paris] (IMT)-Institut Mines-Télécom [Paris] (IMT), Centre de Recherche Interdisciplinaire en Sciences de la Société (CRISS), Université Polytechnique Hauts-de-France (UPHF), Faculté des Sciences Economiques et de Gestion de Sfax (FSEG Sfax), Université de Sfax - University of Sfax, LITEM-IMO, Laboratoire de Recherche Sociétés & Humanités (LARSH), Université Polytechnique Hauts-de-France (UPHF)-INSA Institut National des Sciences Appliquées Hauts-de-France (INSA Hauts-De-France), Institut National des Sciences Appliquées (INSA)-Institut National des Sciences Appliquées (INSA)
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Journal of applied accounting research
Journal of applied accounting research, Emerald, 2022, 23 (2), pp.509-539. ⟨10.1108/JAAR-02-2021-0032⟩
Journal of applied accounting research, 2022, 23 (2), pp.509-539. ⟨10.1108/JAAR-02-2021-0032⟩
ISSN: 1758-8855
0967-5426
Popis: PurposeThe aim of this paper is to examine the impact of directors' home regions on corporate social responsibility (CSR) disclosure. Specifically, the authors aim to determine whether Anglo-American, European, French, other European and other regional directors' presence affects CSR disclosure differently.Design/methodology/approachThis empirical study uses panel data analysis of all listed firms on the SBF 120 from 2008 to 2019. The environmental, social and governance (ESG) scores are collected from the Bloomberg database and indicate the extent of CSR information disclosure by French companies. The paper is based on a dynamic generalized method of moments panel estimator that makes it possible to control for unobservable heterogeneity and endogeneity and reduces estimation bias.FindingsThe findings of this study provide evidence that home region diversity and the presence of Anglo-Americans on a board are positively and significantly associated with ESG disclosure and environmental disclosure, whereas they are negatively associated with social and governance disclosure. Surprisingly, when directors come from European countries, they disclose less ESG and environmental information. Nevertheless, when only French directors are present, the company tends to divulge all dimensions of CSR. Indeed, while there is a significant positive influence of French directors on ESG disclosure, the presence of other European directors displays negative and statistically significant regression coefficients.Research limitations/implicationsThis study may be interesting the French policy makers who can now pay more appropriate attention to directors' nationality or region. Thus, firms should identify the foreign directors who can support their strategy with relevant experience in terms of CSR. This could help to change the opinion of some companies that consider the internalization of the board as a constraint rather than an opportunity. These results will be useful for French-listed companies in setting the criteria for the appointment of foreign directors. It may be interesting to recruit directors across European boundaries.Practical implicationsThis paper attempts to provide a better understanding of the effects of the home regions of directors on CSR disclosure in order to enlighten corporate managers whose companies operate in different cultures given that they have to deal with this aspect. In this international business environment, CEOs should increasingly consider the international CSR experience of directors to be a resource. In addition, this study may be of relevance to French market authorities, which constantly encourage firms to diversify the profiles of directors on their boards and recruit more international members.Originality/valueThis study is the first to evince that the disclosure of each CSR disclosure score differs depending on the directors' home regions. Unlike previous studies, the authors focused simultaneously on the resource-based view (RBV) and institutional theory.
Databáze: OpenAIRE
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