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Corporate Governance and Corporate Social Performance

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  • Kurt A. Desender
  • Mircea Epure

Abstract

Drawing from the agency and stakeholder perspectives, this study aims to provide a systematic understanding of the firm- and institutional-level corporate governance factors that affect corporate social performance (CSP). We argue that recognizing differences in the distribution and timeframe of the costs and benefits to shareholders and other stakeholders is crucial to understand what drives CSP and to conciliate the existing perspectives. We analyze a large cross-country panel dataset and reveal that CSP is positively associated with board independence, but negatively with ownership concentration. We also find that CSP is negatively related to investor protection and shareholderoriented environments, while it is positively related to egalitarian environments. Finally, we jointly analyze firm-level drivers and institutional contexts.

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Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 730.

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Date of creation: Jul 2014
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Handle: RePEc:bge:wpaper:730
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Keywords: corporate governance; corporate social performance (responsibility); agency theory; stakeholder theory;

Other versions of this item:

Find related papers by JEL classification:
  • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
  • G3 - Financial Economics - - Corporate Finance and Governance
  • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
  • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
  • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
  • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
  • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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