Board internationalization and corporate social responsibility

Yi Luo, Jian Ma, Yu Wang and Aishan Ye

The North American Journal of Economics and Finance, 2022, vol. 63, issue C

Abstract: This study examines the association between board internationalization and firms’ corporate social responsibility (CSR) performance in China during 2009–2019. Using a large dataset of director nationalities and CSR scores, we find that foreign directors promote CSR performance as evidenced by higher CSR scores. We further document that this relationship is more pronounced among government-controlled firms, firms with better corporate governance, and firms operating under stricter institutional environments. These findings remain valid after sequential robustness checks. Overall, our findings imply that foreign directors motivate the board of directors and their firms to actively pursue and practice social responsibility. Our study enriches the literature on the outcomes of board internationalization and determinants of CSR and provides the internationalization of corporate governance mechanisms a reasonable basis.

Keywords: Board Internationalization; Corporate Social Responsibility; State-owned Enterprises; Corporate Governance; Institutional Environments (search for similar items in EconPapers)
JEL-codes: G30 G39 M14 (search for similar items in EconPapers)
Date: 2022
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:eee:ecofin:v:63:y:2022:i:c:s1062940822001553

DOI: 10.1016/j.najef.2022.101820

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