Corporate Governance and Corporate Social Performance: The Influence of Boards, Ownership and Institutions
Barcelona GSE Working Paper No. 730
55 Pages Posted: 28 Feb 2015 Last revised: 28 Nov 2015
Date Written: November 1, 2015
We analyze how ownership concentration and type, and board independence are related to corporate social performance (CSP). Drawing from agency, team production and stakeholder perspectives, we argue that the distribution of costs and benefits to shareholders and other stakeholders is crucial to understand what drives CSP. We analyze an international panel of listed firms and reveal that CSP is negatively related to ownership concentration, but positively to board independence. Furthermore, the ownership type and the business context matter. Ownership concentration is negatively related to CSP more strongly in shareholder-oriented societies. This negative relationship is weaker in egalitarian societies.
Keywords: corporate governance, corporate social performance, responsibility, agency theory, stakeholder theory, ownership, boards, institutions
JEL Classification: A13, G3, M0, M1, M14, M4, M41
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