Religiosity, Female Directors, and Corporate Social Responsibility for Italian Listed Companies
Posted: 29 Aug 2018
Date Written: August 20, 2018
Italy has been strongly associated with the Catholic Social Teaching (CST) that represents the central principles (doctrine) of the Roman Catholic Church. Using a sample of 156 Italian listed companies during the 2002-2014 period, this study finds that local religiosity and the presence of female boards are positively related to higher firm corporate social responsibility (CSR). Based on the number of frequency of words in the Encyclicals and Other Writings that are related to religiosity and gender diversity along with regional demographic and socioeconomic characteristics as instrumental variables for local religiosity and female representation on the board, this study finds positive relationships between religiosity and CSR and between the presence of female directors and CSR for Italian listed companies. This study also finds that both the top managers’ (CEOs’) personal religiosity and social pressure from local religiosity play significant roles in firms’ CSR performance.
Keywords: Religiosity, Papacy, Female Board Representation, CSR
JEL Classification: Z12, M14, J16, G30
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