IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v18y2011i2p91-101.html
   My bibliography  Save this article

The relationship between corporate governance and corporate social behavior: a structural equation model analysis

Author

Listed:
  • José Luis Fernández Sánchez
  • Ladislao Luna Sotorrío
  • Elisa Baraibar Díez

Abstract

This paper extends previous research in corporate social responsibility from a corporate governance perspective. Through a two‐step procedure, this research develops a measurement model to measure the unobservable variable of social sensibility of corporate governance (SSCG) and tests empirically the effect of this variable on corporate social behavior using a structural model. Both models are estimated applying Full Information Maximum Likelihood (FIML) and Bayesian methods for the 125 listed companies of the Spanish Continuous Stock Market. Two important conclusions are obtained of this research: first, a firm's SSCG can be measured through two different factors (the independence and pluralism of Boards and the ownership power), and second, there is a direct relationship between the firm's social sensibility of corporate governance and its social behavior. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • José Luis Fernández Sánchez & Ladislao Luna Sotorrío & Elisa Baraibar Díez, 2011. "The relationship between corporate governance and corporate social behavior: a structural equation model analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(2), pages 91-101, March.
    • Handle: RePEc:wly:corsem:v:18:y:2011:i:2:p:91-101
    DOI: 10.1002/csr.244
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.244
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.244?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Stephen Brammer & Stephen Pavelin, 2006. "Voluntary Environmental Disclosures by Large UK Companies," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(7-8), pages 1168-1188.
    3. Stephen Brammer & Stephen Pavelin, 2006. "Voluntary Environmental Disclosures by Large UK Companies," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(7‐8), pages 1168-1188, September.
    4. Stephen J. Brammer & Stephen Pavelin, 2006. "Corporate Reputation and Social Performance: The Importance of Fit," Journal of Management Studies, Wiley Blackwell, vol. 43(3), pages 435-455, May.
    5. Rajeswararao Chaganti & Fariborz Damanpour, 1991. "Institutional ownership, capital structure, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 12(7), pages 479-491, October.
    6. Jing Li & Richard Pike & Roszaini Haniffa, 2008. "Intellectual capital disclosure and corporate governance structure in UK firms," Accounting and Business Research, Taylor & Francis Journals, vol. 38(2), pages 137-159.
    7. Jose‐Manuel Prado‐Lorenzo & Isabel Gallego‐Alvarez & Isabel M. Garcia‐Sanchez, 2009. "Stakeholder engagement and corporate social responsibility reporting: the ownership structure effect," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(2), pages 94-107, March.
    8. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    9. Richard Welford, 2007. "Corporate governance and corporate social responsibility: issues for Asia," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 14(1), pages 42-51, February.
    10. Frank Graaf & Cor Herkströter, 2007. "How Corporate Social Performance Is Institutionalised Within the Governance Structure," Journal of Business Ethics, Springer, vol. 74(2), pages 177-189, August.
    11. Stephen D. Potts & Ingrid Lohr Matuszewski, 2004. "Ethics and Corporate Governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(2), pages 177-179, April.
    12. Mike Adams & Philip Hardwick, 1998. "An Analysis of Corporate Donations: United Kingdom Evidence," Journal of Management Studies, Wiley Blackwell, vol. 35(5), pages 641-654, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Astrid Rudyanto, 2017. "State Ownership, Family Ownership, and Sustainability Report Quality, The Moderating Role of Board Effectiveness," GATR Journals afr129, Global Academy of Training and Research (GATR) Enterprise.
    2. Francesco Calza & Giorgia Profumo & Ilaria Tutore, 2016. "Corporate Ownership and Environmental Proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 369-389, September.
    3. María Consuelo Pucheta‐Martínez & Isabel Gallego‐Álvarez, 2018. "Environmental reporting policy and corporate structures: An international analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 788-798, September.
    4. Sara De Masi & Agnieszka Słomka‐Gołębiowska & Claudio Becagli & Andrea Paci, 2021. "Toward sustainable corporate behavior: The effect of the critical mass of female directors on environmental, social, and governance disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1865-1878, May.
    5. Shaista Wasiuzzaman & Ali Uyar & Cemil Kuzey & Abdullah S. Karaman, 2022. "Corporate social responsibility: Is it a matter of slack financial resources or strategy or both?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2444-2466, September.
    6. Lozano, M. Belén & Martínez-Ferrero, Jennifer, 2022. "Do emerging and developed countries differ in terms of sustainable performance? Analysis of board, ownership and country-level factors," Research in International Business and Finance, Elsevier, vol. 62(C).

    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. Abdalla Shwairef & Azlan Amran & Mohammad Iranmanesh & Noor Hazlina Ahmad, 2021. "The mediating effect of strategic posture on corporate governance and environmental reporting," Review of Managerial Science, Springer, vol. 15(2), pages 349-378, February.
    2. Mohammad A. A. Zaid & Sara T. F. Abuhijleh & María Consuelo Pucheta‐Martínez, 2020. "Ownership structure, stakeholder engagement, and corporate social responsibility policies: The moderating effect of board independence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1344-1360, May.
    3. Hichem Khlif & Kamran Ahmed & Mohsen Souissi, 2017. "Ownership structure and voluntary disclosure: A synthesis of empirical studies," Australian Journal of Management, Australian School of Business, vol. 42(3), pages 376-403, August.
    4. Khaleed Omair Alotaibi & Khaled Hussainey, 2016. "Determinants of CSR disclosure quantity and quality: Evidence from non-financial listed firms in Saudi Arabia," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(4), pages 364-393, November.
    5. Nazim Hussain & Ugo Rigoni & René P. Orij, 2018. "Corporate Governance and Sustainability Performance: Analysis of Triple Bottom Line Performance," Journal of Business Ethics, Springer, vol. 149(2), pages 411-432, May.
    6. Thi H.H. Nguyen & Mohamed H. Elmagrhi & Collins G. Ntim & Yue Wu, 2021. "Environmental performance, sustainability, governance and financial performance: Evidence from heavily polluting industries in China," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2313-2331, July.
    7. Bart Manning & Geert Braam & Daniel Reimsbach, 2019. "Corporate governance and sustainable business conduct—Effects of board monitoring effectiveness and stakeholder engagement on corporate sustainability performance and disclosure choices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 351-366, March.
    8. Roberto Fernández‐Gago & Laura Cabeza‐García & Mariano Nieto, 2018. "Independent directors' background and CSR disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 991-1001, September.
    9. Patricia Crifo & Elena Escrig-Olmedo & Nicolas Mottis, 2019. "Corporate Governance as a Key Driver of Corporate Sustainability in France: The Role of Board Members and Investor Relations," Journal of Business Ethics, Springer, vol. 159(4), pages 1127-1146, November.
    10. María Consuelo Pucheta‐Martínez & Isabel Gallego‐Álvarez, 2018. "Environmental reporting policy and corporate structures: An international analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 788-798, September.
    11. Klaus Möller & Ramin Gamerschlag & Finn Guenther, 2011. "Determinants and effects of human capital reporting and controlling," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(3), pages 311-333, November.
    12. Cristiana Cardi & Camilla Mazzoli & Sabrina Severini, 2018. "Friend or foe? The effect of corporate governance on intellectual capital disclosure in IPOs," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(1), pages 1-12, February.
    13. Grigoris Giannarakis & Andreas Andronikidis & Nikolaos Sariannidis, 2020. "Determinants of environmental disclosure: investigating new and conventional corporate governance characteristics," Annals of Operations Research, Springer, vol. 294(1), pages 87-105, November.
    14. Jae Eun Shin & Seung-Weon Yoo & Gun Lee, 2020. "The Effects of Blockholder Dispersion on the Informativeness of Earnings: Evidence from Korea," Sustainability, MDPI, vol. 12(22), pages 1-18, November.
    15. Maria Manuela Martins & Ana Isabel Morais & Helena Isidro & Raul Laureano, 2018. "Intellectual Capital Disclosure: the Portuguese Case," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1224-1245, December.
    16. Walid Ben‐Amar & Philip McIlkenny, 2015. "Board Effectiveness and the Voluntary Disclosure of Climate Change Information," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 704-719, December.
    17. Tauringana, Venancio & Chithambo, Lyton, 2015. "The effect of DEFRA guidance on greenhouse gas disclosure," The British Accounting Review, Elsevier, vol. 47(4), pages 425-444.
    18. Chenxi Wang & Xincai Deng & Susana Álvarez-Otero & Muhammad Safdar Sial & Ubaldo Comite & Jacob Cherian & Judit Oláh, 2021. "Impact of Women and Independent Directors on Corporate Social Responsibility and Financial Performance: Empirical Evidence from an Emerging Economy," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    19. Alessandra Allini & Francesca Manes Rossi & Riccardo Macchioni, 2014. "Do Corporate Governance Characteristics Affect Non-Financial Risk Disclosure in Government-owned Companies? The Italian Experience," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 5-31.
    20. Samaha, Khaled & Khlif, Hichem & Hussainey, Khaled, 2015. "The impact of board and audit committee characteristics on voluntary disclosure: A meta-analysis," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 13-28.

    More about this item

    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:wly:corsem:v:18:y:2011:i:2:p:91-101. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    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.