CSR Disclosure: The IPO Case

Mar Arenas-Parra and Susana Álvarez-Otero
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Mar Arenas-Parra: Department of Quantitative Economics, Faculty of Economics and Business, University of Oviedo, 33003 Oviedo, Spain
Susana Álvarez-Otero: Department of Business Administration, Faculty of Economics and Business, University of Oviedo, 33003 Oviedo, Spain

Sustainability, 2020, vol. 12, issue 11, 1-22

Abstract: Corporate social responsibility (CSR) is one of the pillars of sustainable development. It is the key to operationalizing the strategic role of business in contributing towards the sustainability process. The fact that firms communicate their activities about economic sustainability, environmental sustainability, and social equity shows their commitment to society and their stakeholders. This paper analyzes the influence exerted by the composition of boards of directors on corporate social responsibility disclosure with reference to those companies that undertook an initial public offerings (IPO) in the Spanish capital market during the period 1998–2013. The empirical evidence provided by this study shows that ownership structure and board characteristics are relevant in the context of a firm’s CSR disclosure. The independent directors, non-executive directors, and large shareholder representatives affect the way in which their companies voluntarily disclose information regarding CSR. Our results lend support for a non-linear relationship between the proportion of shares in the IPO belonging to the members of the board of directors and the level of CSR reporting. We also find that the underwriter’s reputation has a positive and statistically significant influence on CSR disclosure for Spanish IPOs.

Keywords: CSR disclosure; sustainable development; corporate governance; board of directors; institutional ownership; IPOs (initial public offerings) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:11:p:4390-:d:363615

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