Corporate Governance and Ownership Structure Effect on Corporate Social Performance: Evidence from Non-Financial Industries of Pakistan
DOI:
https://doi.org/10.61506/01.00237Keywords:
Corporate social responsibility, Corporate governance, Structure ownership, Agency theory, Ownership managerial, and Independence boardAbstract
This paper will examine the diversified associations between corporate governance and ownership structure impact on corporate social performance in dissimilar industries across Pakistan non-financial. The OLS models regression are estimation to using data from 2011 to 2020, that the non-financial industries of Pakistan. Corporate governance including board independence (BINDP), board size (BSIZE), and audit size and committee (A&COM), and structure ownership including, ownership managerial (MOWN), ownership family (FOWN), and ownership concentration (COWN), inspires of organizations corporate social performance with environmental and social risk market capitalization. Generally, the outcomes significant of ownership structure and corporate governance is recognized in industries of non-financial different at a joint level while examines the organizations with a risk whole risk market capitalization disclosure. That suggest to identifying the ownership structure and corporate governance can risk mitigate the market capitalization disclosure non-financial industries in term of correlation the corporate social performance improving and the developed the benefits with the calculation of identical female director in women on board and family ownership organizations (independent or executive) to the panel. This study also demand consideration to the corporate governance and improve structure ownership to enhance the corporate social responsibility in industries non-financial with market risk capitalization analysis, whereas risk control performance of industries analysis after complement by critical mass and independent directors properties.
References
Abdulkadir, U. and M. N. Alifiah (2020). Review of related literature on the influence of corporate governance attributes on corporate social responsibility disclosure. Journal of critical reviews 7(7) 818-822. DOI: https://doi.org/10.31838/jcr.07.07.150
Abdullah, S. N., et al. (2011). Board independence, ownership and CSR of Malaysian large firms. Corporate Ownership & Control 8(3) 417-431. DOI: https://doi.org/10.22495/cocv8i2c4p5
Ahmad, N. B. J., et al. (2017). Board independence and corporate social responsibility (CSR) reporting in Malaysia. Australasian Accounting, Business and Finance Journal 11(2) 61-85. DOI: https://doi.org/10.14453/aabfj.v11i2.5
Akben-Selcuk, E. (2019). Corporate social responsibility and financial performance: The moderating role of ownership concentration in Turkey. Sustainability 11(13) 3643. DOI: https://doi.org/10.3390/su11133643
Al Fadli, A., et al. (2020). Board independence and CSR reporting: pre and post analysis of JCGC 2009. International Journal of Law and Management 62(2) 117-138. DOI: https://doi.org/10.1108/IJLMA-11-2018-0259
Alabdullah, T. T. Y., et al. (2019). Effect of board size and duality on corporate social responsibility: what has improved in corporate governance in Asia? Journal of Accounting Science 3(2) 121-135. DOI: https://doi.org/10.21070/jas.v3i2.2810
Al-Duais, S. D., et al. (2021). CEO characteristics, family ownership and corporate social responsibility reporting: The case of Saudi Arabia. Sustainability 13(21) 12237. DOI: https://doi.org/10.3390/su132112237
Alshbili, I., et al. (2020). Ownership types, corporate governance and corporate social responsibility disclosures: Empirical evidence from a developing country. Accounting Research Journal 33(1) 148-166. DOI: https://doi.org/10.1108/ARJ-03-2018-0060
Ananzeh, H., et al. (2022). The impact of corporate governance on forward-looking CSR disclosure. Journal of Financial Reporting and Accounting(ahead-of-print). DOI: https://doi.org/10.1108/JFRA-10-2021-0379
Aragón-Amonarriz, C., et al. (2019). How can responsible family ownership be sustained across generations? A family social capital approach. Journal of Business Ethics 159 161-185. DOI: https://doi.org/10.1007/s10551-017-3728-7
Bansal, S., et al. (2018). Board independence and corporate social responsibility disclosure: The mediating role of the presence of family ownership. Administrative Sciences 8(3) 33. DOI: https://doi.org/10.3390/admsci8030033
Banyen, T. (2022). Behavioral Drivers of Stock Market Participation: Insights from Ghanaian Investors. Journal of Business and Economic Options, 9(2).
Barzegar, G., et al. (2019). An investigation of the audit committee characteristics effects on corporate social responsibility disclosure. Quarterly Journal of The Iranian Accounting & Auditing Review 26(1) 19-38.
Beji, R., et al. (2021). Board diversity and corporate social responsibility: Empirical evidence from France. Journal of Business Ethics 173 133-155. DOI: https://doi.org/10.1007/s10551-020-04522-4
Biçer, A. A. and I. M. Feneir (2019). The impact of audit committee characteristics on environmental and social disclosures: evidence from Turkey. International Journal of Research in Business and Social Science (2147-4478) 8(3) 111-121. DOI: https://doi.org/10.20525/ijrbs.v8i3.262
Dwekat, A., et al. (2020). Corporate governance configurations and corporate social responsibility disclosure: Qualitative comparative analysis of audit committee and board characteristics. Corporate Social Responsibility and Environmental Management 27(6) 2879-2892. DOI: https://doi.org/10.1002/csr.2009
El Ghoul, S., et al. (2016). Family control and corporate social responsibility. Journal of Banking & Finance 73 131-146. DOI: https://doi.org/10.1016/j.jbankfin.2016.08.008
Fahad, P. and P. M. Rahman (2020). Impact of corporate governance on CSR disclosure. International Journal of Disclosure and Governance 17(2-3) 155-167. DOI: https://doi.org/10.1057/s41310-020-00082-1
Fatima, T. and S. Elbanna (2023). Corporate social responsibility (CSR) implementation: A review and a research agenda towards an integrative framework. Journal of Business Ethics 183(1) 105-121. DOI: https://doi.org/10.1007/s10551-022-05047-8
Fitri, E. R., et al. (2019). Influence of foreign ownership, ownership concentrated, and environmental disclosure to firm value. Indonesian Journal of Economics, Social, and Humanities 1(2) 91-96. DOI: https://doi.org/10.31258/ijesh.1.2.91-96
Flammer, C., et al. (2019). Corporate governance and the rise of integrating corporate social responsibility criteria in executive compensation: Effectiveness and implications for firm outcomes. Strategic Management Journal 40(7) 1097-1122. DOI: https://doi.org/10.1002/smj.3018
Guo, M. and S. Shen (2019). Managerial shareholding and CSR: Does internal control quality matter?—Evidence from China. Sustainability 11(15) 4206. DOI: https://doi.org/10.3390/su11154206
Javeed, S. A. and L. Lefen (2019). An analysis of corporate social responsibility and firm performance with moderating effects of CEO power and ownership structure: A case study of the manufacturing sector of Pakistan. Sustainability 11(1) 248. DOI: https://doi.org/10.3390/su11010248
Kengatharan, L. and T. Sivakaran (2019). Impact of corporate governance practices on corporate social responsibility: evidence from listed banks, finance and insurance companies in Sri Lanka. Asia-Pacific Management Accounting Journal (APMAJ) 14(2) 115-138. DOI: https://doi.org/10.24191/APMAJ.v14i2-06
Khan, M. A. (2022). The Impact of Earnings Management on Financial Metrics: Insights from Pakistani Firms. Journal of Business and Economic Options, 9(3).
Khan, R., & Ullah, B. (2017). Examining the Impact of Firm Sustainability Practices on Firm Growth: Evidence from the United States. Journal of Policy Options, 4(4), 89-103.
Kirana, A. D. and A. B. Prasetyo (2021). Analyzing board characteristics, ownership structure and company characteristic to CSR disclosure. Accounting Analysis Journal 10(1) 62-70. DOI: https://doi.org/10.15294/aaj.v10i1.41944
Liu, Y., et al. (2020). Impact of ownership structure and ownership concentration on credit risk of Chinese commercial banks. International Journal of Managerial Finance 16(2) 253-272. DOI: https://doi.org/10.1108/IJMF-03-2019-0094
Long, W., et al. (2020). Corporate social responsibility and financial performance: The roles of government intervention and market competition. Corporate Social Responsibility and Environmental Management 27(2) 525-541. DOI: https://doi.org/10.1002/csr.1817
Margolis, M., & Calderon, G. (2020). Internationalization Dynamics: The Case of Mexican Firms in the Era of Globalization. Journal of Business and Economic Options, 7(4).
Mukhtar, Z., et al. (2023). Ownership Structure’s Impact On Corporate Social Performance In Dissimilar Industry Groups: Evidence From Pakistan. Bulletin of Business and Economics (BBE) 12(2) 320-331. DOI: https://doi.org/10.61506/01.00005
Namadi, S. (2023). Strategic Management of Outsourcing Balancing Profitability and Cost Control in Corporate Operations. Journal of Business and Economic Options, 10(4), 26-32.
Olubiyi, E. A. (2023). Determinants of Dividend Policy in Nigerian Stock Exchange Companies. Journal of Business and Economic Options, 10(3), 1-8.
Pandiangan, S. M. T., et al. (2022). Analysis of public ownership and management ownership on the implementation of the triple bottom line in the plantation sector listed on the Indonesia Stock Exchange. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) 5(1) 349-3497.
Qaderi, S. A., et al. (2020). Audit committee features and CSR disclosure: Additional evidence from an emerging market. Int. J. Financ. Res 11 226-237. DOI: https://doi.org/10.5430/ijfr.v11n5p226
Sahasranamam, S., et al. (2020). Ownership structure and corporate social responsibility in an emerging market. Asia Pacific Journal of Management 37 1165-1192. DOI: https://doi.org/10.1007/s10490-019-09649-1
Seckin-Halac, D., et al. (2021). Ownership and corporate social responsibility: The power of the female touch. European Management Journal 39(6) 695-709. DOI: https://doi.org/10.1016/j.emj.2021.01.008
Shang, L., et al. (2023). How does the absorbed slack impact corporate social responsibility? Exploring the nonlinear effect and condition in China. Asian Business & Management 22(3) 857-877. DOI: https://doi.org/10.1057/s41291-022-00176-4
Sivakumar, R., & Kumar, L. (2017). Unlocking Organizational Potential: The Synergy of Performance Management and Knowledge Management. Journal of Business and Economic Options, 4(4), 72-78.
Su, S., et al. (2022). A systematic literature review on ownership and corporate social responsibility in family firms. Sustainability 14(13) 7817. DOI: https://doi.org/10.3390/su14137817
Subhani, I., Iqbal, J., Jamil, F., & Iqbal, J. (2022). Relevance of Earnings Metrics: A Comparative Analysis of EPS and CFO on the Pakistan Stock Exchange. Journal of Business and Economic Options, 9(4).
Sugiyanto, E., et al. (2021). Corporate social responsibility and firm value with profifitability, firm size, managerial ownership, and board of commissioners as moderating variables. Riset Akuntansi Dan Keuangan Indonesia 6(1) 22-30.
Tiep Le, T. and V. K. Nguyen (2022). The impact of corporate governance on firms’ value in an emerging country: The mediating role of corporate social responsibility and organisational identification. Cogent Business & Management 9(1) 2018907. DOI: https://doi.org/10.1080/23311975.2021.2018907
Trisnadewi, A. and A. Amlayasa (2020). Corporate values: the role of corporate social responsibility, managerial ownership and profitability in Indonesia. American Journal of Humanities and Social Sciences Research (AJHSSR) 4(7) 279-287.
Ullah, S., & Sohail, M. (2019). Short Run and Long Run Performance of IPO’s Returns in the case of Pakistan. Journal of Business and Economic Options, 6(3).
Velte, P. (2022). Meta-analyses on corporate social responsibility (CSR): a literature review. Management Review Quarterly 72(3) 627-675. DOI: https://doi.org/10.1007/s11301-021-00211-2
Wang, Z., & Ahmad, R. (2015). Impact of Working Capital Management on Firm Profitability: Evidence from Pakistan’s Textile Sector. Journal of Business and Economic Options, 2(2), 55-61.
Widyasari, P. A. and N. Ayunda (2020). CSR Reporting: Perspective of Female Audit Committee Having Financial Expertise. DOI: https://doi.org/10.2991/aebmr.k.200127.029
Worokinasih, S. and M. L. Z. B. M. Zaini (2020). The mediating role of corporate social responsibility (CSR) disclosure on good corporate governance (GCG) and firm value. A technical note. Australasian Accounting, Business and Finance Journal 14(1) 88-96. DOI: https://doi.org/10.14453/aabfj.v14i1.9
Xue, Y., et al. (2022). Corporate social responsibility and high-quality development: do green innovation, environmental investment and corporate governance matter? Emerging Markets Finance and Trade 58(11) 3191-3214. DOI: https://doi.org/10.1080/1540496X.2022.2034616
Zaman, R., et al. (2022). Corporate governance meets corporate social responsibility: Mapping the interface. Business & Society 61(3) 690-752. DOI: https://doi.org/10.1177/0007650320973415
