CSR Disclosure: Effects of Political Ties, Executive Turnover and Shareholder Equity. Evidence from China

Fawad Rauf, Cosmina L. Voinea, Khwaja Naveed and Cosmin Fratostiteanu
Additional contact information
Fawad Rauf: Faculty of Management, The Open University of the Netherlands, P.O. Box 2960, 6401 DL Heerlen, The Netherlands
Cosmina L. Voinea: Faculty of Management, The Open University of the Netherlands, P.O. Box 2960, 6401 DL Heerlen, The Netherlands
Khwaja Naveed: Faculty of Management, The Open University of the Netherlands, P.O. Box 2960, 6401 DL Heerlen, The Netherlands
Cosmin Fratostiteanu: Faculty of Economics and Business Administration, University of Craiova, 200396 Craiova, Romania

Sustainability, 2021, vol. 13, issue 7, 1-18

Abstract: The context of China fosters different contextual factors, which influences the quality of corporate social responsibility (CSR) disclosure in comparison to firms across the rest of the world. Political ties at a corporate level are one of these vital factors. This paper studies the influence of firm-level political ties (PT) and executive turnover (ET) on the quality of CSR disclosure in the context of shareholding status of departing executive in Chinese listed A-share firms. Stakeholder and Agency theories are applied to the dissemination of CSR disclosures in Chinese firms whereby we used 20,578 firm-years interpretations of Chinese registered companies between 2012 and 2019. The results foster a negative link between executive turnover and quality of CSR disclosures. In addition, a negative relationship has been found between political ties and the quality of CSR disclosure. The findings disclose that the shareholding status of departing executive moderate the relationship between the impact of political ties and executive turnover on firms quality of CSR disclosure, whilst the effect of executive turnover on the quality of CSR disclosure was found more pronounced for firms whose departing executive held larger shareholding (SH). This study contributed to the literature on the quality of CSR disclosure while recognizing the negative effect of executive turnover on a firm’s quality of CSR disclosure for politically tied firms with a reinforcing moderating role of the shareholding status of departing executive.

Keywords: corporate social responsibility (CSR); CSR disclosure quality; Executive turnover; Political ties; Shareholding; Shareholder equity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:7:p:3623-:d:523464

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