The relationship between corporate governance and community engagement: Evidence from the Australian mining companies

Philip T. Lin, Bin Li and Danlu Bu

Resources Policy, 2015, vol. 43, issue C, 28-39

Abstract: We investigate whether effective corporate governance mechanisms help improve firm-level community engagement activities, using a sample of Australian mining companies for the period 2005–2013. We firstly document that effective board structure and functionality positively contribute to mining companies׳ community engagement. Secondly, we analyze the components of community engagement and examine each of them individually with governance mechanisms. The results show that the effects on engagement with indigenous people and indirect economic are mostly significant and profound. Thirdly, we hypothesize that firm performance proxied by dividend yield can moderate the relationship between governance mechanisms and community engagement. Our empirical results support this hypothesis, suggesting that dividend yield mitigates the negative effects of the largest shareholders ownership and strengthens the positive effects of board size, board meeting and the presence of CSR committee on community engagement level.

Keywords: Corporate governance; Community engagement; Australian mining companies (search for similar items in EconPapers)
JEL-codes: M14 Q01 Q32 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030142071400083X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:43:y:2015:i:c:p:28-39

DOI: 10.1016/j.resourpol.2014.11.004

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().