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Board political influence and corporate social responsibility: evidence from Jordan

Author

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  • Khaldoon Ahmad Al Daoud
  • Buthiena Kharabsheh

Abstract

This study examines the relationship between board political influence and corporate social responsibility (CSR) in Jordan. To achieve this objective, an index from 36-items was created by the researchers to measure the CSR activities of these companies. Using a panel dataset of 210 firm-year observations of industrial firms listed on the Amman Stock Exchange over a four-year period (2014-2018), the findings showed significantly improved positive CSR activities by boards with greater political influence, also that implementation of CSR activities was strongly enhanced by external block holder presence on the board, whereas insider ownership showed mixed results and CEO ownership appeared negative; however, director ownership was highly positive and significant under both CSR measures. Furthermore, board independence had a negative impact on corporate CSR. The findings of the present study expand our understanding of the relationship between political influence and CSR activities, using various theories to explain particular theoretical associations.

Suggested Citation

  • Khaldoon Ahmad Al Daoud & Buthiena Kharabsheh, 2022. "Board political influence and corporate social responsibility: evidence from Jordan," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 26(1), pages 1-19.
    • Handle: RePEc:ids:gbusec:v:26:y:2022:i:1:p:1-19
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