IDEAS home Printed from https://ideas.repec.org/a/ibn/assjnl/v16y2020i8p10.html

Corporate Governance Mechanisms and Corporate Social Responsibility (CSR) in Kuwaiti Listed Firms

Author

Listed:
  • Mejbel Al-Saidi

Abstract

Firms must maintain a balance between their performance and corporate social responsibility (CSR). This study examines the relationship between corporate governance mechanisms and the CSR of firms listed on the Kuwait Stock Exchange (KSE) within the framework of agency theory. Using a sample of 86 firms in 2019, this study explored five corporate governance mechanisms (i.e., ownership concentration by large shareholders, ownership concentration by government, board size, board independence, and family directors) and five control variables (i.e., debt, firm size, firm age, profitability, and industry type). The study used the index checklist to measure CSR and found that ownership concentration by large shareholders, ownership concentration by government, and board size affect a firm’s social responsibility while other variables have no impact. This study was the first to examine the impact of corporate governance mechanisms on corporate social responsibility in Kuwait after introducing the new corporate governance rules, and the findings will help Kuwait’s government, firms, and investors evaluate the current rules and improve CSR requirements.

Suggested Citation

  • Mejbel Al-Saidi, 2020. "Corporate Governance Mechanisms and Corporate Social Responsibility (CSR) in Kuwaiti Listed Firms," Asian Social Science, Canadian Center of Science and Education, vol. 16(8), pages 1-10, August.
    • Handle: RePEc:ibn:assjnl:v:16:y:2020:i:8:p:10
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ass/article/download/0/0/43307/45379
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ass/article/view/0/43307
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liu, Mingzhi & Shi, Yulin & Wilson, Craig & Wu, Zhenyu, 2017. "Does family involvement explain why corporate social responsibility affects earnings management?," Journal of Business Research, Elsevier, vol. 75(C), pages 8-16.
    2. Mohammad Abu Sufian & Muslima Zahan, 2013. "Ownership Structure and Corporate Social Responsibility Disclosure in Bangladesh," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 901-909.
    3. Brooks,Chris, 2014. "Introductory Econometrics for Finance," Cambridge Books, Cambridge University Press, number 9781107661455, December.
    4. repec:cup:cbooks:9781107034662 is not listed on IDEAS
    5. Yermack, David, 1996. "Higher market valuation of companies with a small board of directors," Journal of Financial Economics, Elsevier, vol. 40(2), pages 185-211, February.
    6. Rania Beji & Ouidad Yousfi & Nadia Loukil & Abdelwahed Omri, 2020. "Board Diversity and Corporate Social Responsibility: Empirical Evidence from France," Post-Print hal-03029297, HAL.
    7. Roshima Said & Yuserrie Hj Zainuddin & Hasnah Haron, 2009. "The relationship between corporate social responsibility disclosure and corporate governance characteristics in Malaysian public listed companies," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 5(2), pages 212-226, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Ahsan Uddin & Mir Misnad Sultana, 2024. "Does Corporate Governance Affect Intellectual Capital Disclosure Practices?," International Journal of Science and Business, IJSAB International, vol. 41(1), pages 34-55.
    2. Ankita Nandi & Nidhi Agarwala & Tarak Nath Sahu, 2025. "Can Corporate Governance and Sustainability Policies Drive CSR Performance? An Empirical Study," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 32(1), pages 77-102, March.
    3. Oliver Lukason & María-del-Mar Camacho-Miñano, 2020. "Corporate Governance Characteristics of Private SMEs’ Annual Report Submission Violations," JRFM, MDPI, vol. 13(10), pages 1-19, September.
    4. Mejbel Al-Saidi, 2020. "Investigating the Impact of Board of Directors on Accounting Conservatism in Kuwait," International Business Research, Canadian Center of Science and Education, vol. 13(9), pages 1-46, September.
    5. Nischay Arora & Balwinder Singh, 2023. "Do Female Directors Signal Indian SME IPOs Quality? Evidence From a Quantile Regression Approach," Global Business Review, International Management Institute, vol. 24(1), pages 185-205, February.
    6. Priti Yadav & Anshul Jain, 2023. "Sustainability disclosures and corporate boards: a stakeholder approach to decision-making," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 24(5), pages 1027-1047, April.
    7. Pei Chu & Mohamed Elsayed & Yousry Ahmed, 2025. "Do women in the boardroom influence foreign acquisitions' premium and outcomes? Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 1163-1189, April.
    8. Natasha Burns & Andrew Keithley & Kristina Minnick & Mia L. Rivolta, 2022. "When in Rome: Local social norms and income differences," The Financial Review, Eastern Finance Association, vol. 57(3), pages 457-484, August.
    9. Ebrahim, Ahmed & Fattah, Tarek Abdel, 2015. "Corporate governance and initial compliance with IFRS in emerging markets: The case of income tax accounting in Egypt," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 46-60.
    10. A. A. Drakos & F. V. Bekiris, 2010. "Endogeneity and the relationship between board structure and firm performance: a simultaneous equation analysis for the Athens Stock Exchange," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(6), pages 387-401.
    11. Lu, Yun & Ntim, Collins G. & Zhang, Qingjing & Li, Pingli, 2022. "Board of directors’ attributes and corporate outcomes: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 84(C).
    12. Martijn Cremers & Roberta Romano, 2007. "Institutional Investors and Proxy Voting: The Impact of the 2003 Mutual Fund Voting Disclosure Regulation," Yale School of Management Working Papers amz2660, Yale School of Management, revised 01 Jan 2008.
    13. Hassan Heidari & Arash Refah-Kahriz & Nayyer Hashemi Berenjabadi, 2018. "Dynamic Relationship between Macroeconomic Variables and Stock Return Volatility in Tehran Stock Exchange: Multivariate MS ARMA GARCH Approach," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 5(2), pages 223-250.
    14. Fu, Fangjian & Lin, Leming & Officer, Micah S., 2013. "Acquisitions driven by stock overvaluation: Are they good deals?," Journal of Financial Economics, Elsevier, vol. 109(1), pages 24-39.
    15. He, Wei & Kyaw, NyoNyo A., 2018. "Ownership structure and investment decisions of Chinese SOEs," Research in International Business and Finance, Elsevier, vol. 43(C), pages 48-57.
    16. Marwil J. Dávila-Fernández, 2019. "Manufacture Content and Financialisation: An Empirical Assessment," Department of Economics University of Siena 811, Department of Economics, University of Siena.
    17. Xin Chang & Shi Hua Lin & Lewis H. K. Tam & George Wong, 2010. "Cross‐sectional determinants of post‐IPO stock performance: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(3), pages 581-603, September.
    18. Kabaciński, Bartosz & Geyer-Klingeberg, Jerome & Mizerka, Jacek Piotr & Rathgeber, Andreas & Stróżyńska-Szajek, Agnieszka & Nowicki, Mikołaj, . "Realne zarządzanie zyskami a jakość nadzoru korporacyjnego: metaregresja," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2024(4).
    19. Anh Huu Nguyen & Thu Minh Thi Vu & Quynh Truc Thi Doan, 2020. "Corporate Governance and Stock Price Synchronicity: Empirical Evidence from Vietnam," IJFS, MDPI, vol. 8(2), pages 1-13, April.
    20. Sheikh, Shahbaz, 2018. "The impact of market competition on the relation between CEO power and firm innovation," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 36-50.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:assjnl:v:16:y:2020:i:8:p:10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.