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Does Gender Diversity Moderate the Relationship Between Corporate Social Responsibility and Financial Distress in European Firms?

Author

Listed:
  • Maali Kachouri
  • Yosra bida Youssef

    (ISFFS, Univeristy of Sousse, Tunisa)

Abstract

Purpose- this study provides a valuable contribution by exploring the moderating effect of gender diversity on the relationship between corporate social responsibility and financial distress. Design/Methodology/Approach- the study is based on a sample consisting of 488 European firms over the 2010–2022 period. This paper is motivated by moderation model that specify the interaction between corporate social responsibility, financial distress, and gender diversity. Findings- our results show that a high level of corporate social responsibility is negatively associated with financial distress in firms with a higher percentage of gender diversity. Practical implications- the findings of this study may interest academic researchers, investors, and regulators. Academic researchers will find value in exploring the dynamic relationship between corporate social responsibility (CSR), financial distress, and gender diversity. For investors, our results indicate that the presence of female directors on the board is associated with increased financial distress. For regulators, our findings suggest that policymakers worldwide should emphasize the importance of female roles in enhancing firms' engagement in corporate social responsibility reporting. Originality/value- This paper contributes to the existing literature by examining the moderating effect of gender diversity on the relationship between corporate social responsibility and financial distress within the European context.

Suggested Citation

  • Maali Kachouri & Yosra bida Youssef, 2025. "Does Gender Diversity Moderate the Relationship Between Corporate Social Responsibility and Financial Distress in European Firms?," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 24(1), pages 173-202, March.
    • Handle: RePEc:ami:journl:v:24:y:2024:i:1:p:173-202
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    References listed on IDEAS

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    More about this item

    Keywords

    corporate social responsibility; financial distress; gender diversity; female directors;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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