Director ownership, outside directors and commitment to corporate social responsibility

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)66-78
Journal / PublicationCorporate Board: Role, Duties and Composition
Volume7
Issue number1
Publication statusPublished - 2011

Abstract

This paper examines the effects of director ownership and the proportion of outside directors on firms' commitment to corporate social responsibility (CSR). Using a sample of 453 Hong Kong listed companies for 2005, we find that there is a non-linear relationship between the level of director ownership and firms' engagement in CSR behavior. Commitment to CSR first increases as the proportion of director ownership increases up to 50% and then decreases as that proportion of ownership grows higher. Further, the proportion of outside directors on the board exhibits a positive relationship with the level of CSR commitment. These results provide explanations for firms' commitment to CSR from the corporate governance perspective.

Research Area(s)

  • Board of directors, Corporate social responsibility, Director ownership, Outside directors