The impact of board characteristics on corporate social responsibility disclosures: evidence from state-owned enterprises in Kenya

Albert Ochien'g Abang'a and Venancio Tauringana

Journal of Accounting in Emerging Economies, 2023, vol. 14, issue 3, 612-638

Abstract: Purpose - To investigate the impact of board characteristics (board gender diversity, board chair age, board subcommittees, board meetings, board skill, board size and board independence) on corporate social responsibility disclosures (CSRD) of state-owned enterprises (SOEs) in Kenya during the period 2015–2018. Design/methodology/approach - The study employed fixed-effects balanced panel data to examine the impact of board characteristics on CSRD. The analysis is repeated using two regression estimators (robust least square and random effects) and the four CSRD subcomponents to evaluate the robustness of the main analysis. Findings - The results established that board gender diversity, board chair age and board subcommittees had significant negative effects on CSRD. The impact of the remaining board characteristics was found to be insignificant. Research limitations/implications - The study was limited to the disclosures included in the annual reports, which means that information disclosed in other media, like websites, was not considered. The second limitation concerns mediating and moderator variables that were not considered. Practical implications - There is a need for a stricter corporate governance implementation mechanism, as opposed to the “comply or explain” principle, since results suggest that most of the board characteristics do not appear to be impactful. Additionally, the low level of reported CSRD calls for the establishment of Corporate Social Responsibility or related committees. Social implications - The evidence suggests that SOEs are reluctant to report on issues such as ethics, health and safety initiatives, environment and social investments. Originality/value - The paper extends the literature on the impact of board characteristics on CSRD in unlisted non-commercial SOEs in a developing country context.

Keywords: Corporate social responsibility disclosures; Multi-theoretical framework; Mwongozo code of corporate governance; State-owned enterprises; Kenya (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaeepp:jaee-01-2022-0008

DOI: 10.1108/JAEE-01-2022-0008

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