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The Impact of CEO Duality and Financial Performance on CSR Disclosure: Empirical Evidence from State-Owned Enterprises in China

Author

Listed:
  • Cosmina L. Voinea

    (Faculty of Management, Open Universiteit, P.O. Box 2960, 6401 DL Heerlen, The Netherlands)

  • Fawad Rauf

    (Faculty of Management, Open Universiteit, P.O. Box 2960, 6401 DL Heerlen, The Netherlands)

  • Khwaja Naveed

    (Faculty of Management, Open Universiteit, P.O. Box 2960, 6401 DL Heerlen, The Netherlands)

  • Cosmin Fratostiteanu

    (Faculty of Economics and Business Administration, University of Craiova, 200396 Craiova, Romania)

Abstract

This paper studies the effects of a firm’s financial performance (FP) and chief executive officer’s (CEO) duality on the quality of corporate social responsibility (CSR) disclosure in the context of state-owned enterprises (SOEs) among Chinese A-share-registered companies. The results depict a negative relationship between CEO duality and CSR disclosure. Our results demonstrate that better-performing firms disclose CSR information more frequently and of higher quality compared with firms with poor financial performance. This role of financial performance in the quality of CSR disclosure is generally valuable in public enterprises; however, it is relatively sluggish in state-owned enterprises the outcomes indicate that the dual leadership structure reduces assessments and renders CEOs less liable to their stakeholders. Therefore, this study offers valuable information and details for regulators to improve corporate governance and CSR from the perspective of stakeholder theory.

Suggested Citation

  • Cosmina L. Voinea & Fawad Rauf & Khwaja Naveed & Cosmin Fratostiteanu, 2022. "The Impact of CEO Duality and Financial Performance on CSR Disclosure: Empirical Evidence from State-Owned Enterprises in China," JRFM, MDPI, vol. 15(1), pages 1-17, January.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:1:p:37-:d:725712
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    References listed on IDEAS

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    Cited by:

    1. Shahid Ali & Muhammad Akram Naseem & Junfeng Jiang & Ramiz Ur Rehman & Fizzah Malik & Muhammad Ishfaq Ahmad, 2022. "“How†and “When†CEO Duality Matter? Case of a Developing Economy," SAGE Open, , vol. 12(3), pages 21582440221, August.
    2. Khwaja Naveed & Fahad Khalid & Cosmina Lelia Voinea, 2023. "Board gender diversity and corporate green innovation: An industry‐level institutional perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 755-772, March.
    3. Fawad Rauf & Wanqiu Wang & Cosmina L. Voinea, 2024. "Interaction of Corporate Social Responsibility Reporting at the Crossroads of Green Innovation Performance and Firm Performance: The Moderating Role of the Enterprise Life Stage," Sustainability, MDPI, vol. 16(5), pages 1-18, February.

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