Oleh Pasko

Adopting agency and stakeholders theories, this study aims to investigate the relationship between corporate governance attributes (board size, board independence, female directors, and CEO duality) and sustainability reporting conduct in China. The empirical analysis is based on a sample of 10,330 firm-year observations of Chinese listed companies over the period from 2015 to 2018. Data are supplied by WIND and CSMAR databases, whilst regression analysis is applied to test the hypotheses. Results indicate that board size and board independence were found to be positively associated with the sustainability reporting conduct, while female directors and CEO duality both do not have a significant effect on sustainability reporting conduct in the Chinese institutional settings. This paper advances on arguments of the agency and stakeholders theories with these findings. The larger and more independent board facilitates better monitoring of the managers, what leads to decision-making based on a more appreciation of stakeholders’ perspectives. The study is premised on the presence/absence of sustainability reporting, and it does not take into consideration the quality aspect, which can result in erroneous interpretation. The results should not be generalized as the sample was based on China’s companies for 2015–2018. This study has policy implications for managers and policymakers alike concerning designing board composition conducive to sustainability reporting conduct.

This paper examines the difference that the assurance brings to the quality of CSR reports in the Chinese institutional setting, in particular, the difference in quality (proxy – RKS ranking) of assured and unassured CSR reports, as well as whether the high ownership concentration and corresponding to it “entrenchment effect” obstruct the positive impact the assurance exerts on the quality of CSR reports. The paper examines CSR reports on 2,292 firm-year observations of large Chinese companies over three years (2015–2018). The hypothesis development process predicates on the signaling and stakeholder theories, whilst this study applies regression analysis to test the hypotheses.
Consistent with the predictions of signaling and stakeholder theories, the paper finds that assurance contributes to the higher quality of CSR reports. Moreover, the study finds that assured CSR reports have higher sub-scores in all four aspects of RKS ranking. However, as ownership concentration exceeds 50 per cent and reaches the majority, it thwarts the advancement in the quality of CSR reports through its assurance.
The paper provides an initial empirical account of the role of assurance in the emerging CSR reporting practice in China. The paper contributes to the modest body of empirical research on the function of external assurance in the CSR area by explicating the role played both by the accounting (external assurance) and corporate governance (ownership concentration) infrastructure to ensure high quality of CSR reporting. The paper briefs local, international regulatory authorities and the business community about the importance of external assurance for the CSR reporting quality.

This study examines the relationship between corporate social responsibility and the effectiveness of internal control, while simultaneously examining board gender diversity to check whether female directors contribute to corporate transparency or not. The sample of the study comprises 15,231 firm-year observations of companies listed on the Shanghai and Shenzhen stock exchanges from 2013 to 2018. The raw data for variable calculation come from authoritative and reputable sources, such as China Stock Market and Accounting Research (CSMAR), DIB Internal Control database, and RKS CSR score. The empirical study shows that socially high-performing firms possess a more effective internal control mechanism. However, the paper failed to find a positive association of gender diversity on the board with internal control effectiveness, and failed to attest reinforcing effect of female directors on internal control in socially responsible firms. This study suggests that in China’s institutional environment, female directors are unlikely to contribute to increased corporate transparency. This study is useful for both regulators and company management to establish a master plan and tactics for board composition to improve corporate transparency, taking into account the effect of the investigated phenomena within the jurisdiction under study.

Acknowledgment
This paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “EMBRACING EU CORPORATE SOCIAL RESPONSIBILITY: CHALLENGES AND OPPORTUNITIES OF BUSINESS-SOCIETY BONDS TRANSFORMATION IN UKRAINE” 101094100 — EECORE — ERASMUS-JMO-2022-HEI-TCH-RSCH-UA-IBA / ERASMUS-JMO-2022-HEI-TCHRSCH https://eecore.snau.edu.ua/

Drawing on the agency and resource dependence theories, the paper assumes that the impact of corporate social responsibility on companies’ financial performance should be investigated not in a binary manner but against the backdrop of corporate governance. The analysis is based on testing the dataset retrieved from the Chinese Stock Market and Accounting Research database containing 28,200 company-year observations of 3,576 Chinese listed companies covering 2008–2019. The findings accentuate that corporate social responsibility, interacting with board size, equity concentration, and CEO duality, positively impacts a firm’s financial performance. In contrast, the study fails to substantiate the claim that board gender diversity and board independence moderate the bond between corporate social responsibility and financial performance. Thus, by exploring five elements of corporate governance, this study takes a step forward in understanding exactly which elements of corporate governance best suit corporate social responsibility to enhance financial performance in China’s institutional settings. This study assists in filling the gap in corporate social responsibility research by displaying and corroborating the moderating effects of corporate governance attributes on the nexus between corporate social responsibility and financial performance in China. Therefore, this paper presents valuable information and details for companies and regulators alike to improve the impact of corporate social responsibility on financial performance by focusing on corporate governance quality.

Acknowledgment
This paper is co-funded by European Union through the European Education and Culture Executive Agency (EACEA) within the project “EU Best Practice Of Life Cycle Assessment, Social, Environmental Accounting And Sustainability Reporting 101047667 – EULASTING – ERASMUS-JMO-2021-HEI-TCH-RSCH” (https://bit.ly/3Bbvquw).

Sustainability reporting has become a practice of the majority and is decided by boards of directors as the supreme governing body in the decision-making process of companies. The paper provides a high-view picture and visualizes research to portray the historical shifts in sustainability reporting nexus to corporate governance through an analysis utilizing CiteSpace software on 935 articles published in Web of Science Core Collection from 2009 to 2021.
The number of papers in the area has expanded, especially since 2013 (a branching point), while the study determines a type of bifurcation spot (the year 2017) that evinces the SR-CG field maturity. The study determined the dominant countries through affiliated to them researchers (the United Kingdom, Spain, Italy, China and Australia), the most esteemed journals (Journal of Business Ethics, Business Strategy and the Environment and Accounting, Auditing & Accountability Journal), and the major co-occurrence of hot keywords (carbon disclosure project, environmental disclosure quality, integrated reporting, financial performance, foreign director, environmental reporting, public sector, sustainability assurance statement).
The paper identifies principal issues where SR-CG research lags (dearth of those research in developing economies and geographical limitation of research) and unravels uncharted so far domains (jurisdictions-related studies) in the realm. Future research in the realm is likely to focus on ESG, disclosures and governance performance, as well as on specific areas (geography, industry, etc.), and will explore in depth the role of multiple factors together. This papers indicate the growing convergence between SR and CG in literature, and given predominance of ‘SR as a function of CG’ approach a more stalwart and sound CG framework could bring about more tenable SR practices. The paper puts forward an agenda for advancing forthcoming research in the realm of SR-CG interdependence.

Acknowledgment
This paper is co-funded by European Union through the European Education and Culture Executive Agency (EACEA) within the project “EU BEST PRACTICE OF LIFE CYCLE ASSESSMENT, SOCIAL, ENVIRONMENTAL ACCOUNTING AND SUSTAINABILITY REPORTING” 101047667 — EULASTING — ERASMUS-JMO-2021-HEI-TCH-RSCH https://bit.ly/3Bbvquw

This study aims to investigate whether corporate social responsibility activities are associated with more or less tax avoidance by focusing on this interrelationship in mandatory vs. voluntary regulatory regimes. The sample includes 6,668 firm-year observations of Chinese A-share firms listed on the Shanghai and Shenzhen stock exchanges over 2011–2019. The study uses corporate culture and risk management theories to develop the hypotheses. Regression analysis and various robustness tests are employed to test the hypotheses. The data are retrieved from the HEXUN CSR system and CSMAR and WIND databases.
Consistent with the predictions of corporate culture theory, which argues that aggressive tax avoidance cannot be synchronously coupled with corporate social responsibility, the paper finds that notwithstanding regulatory regime, when the level of corporate social responsibility increases, the level of tax aggressiveness decreases. Thus, the results show that firms reporting corporate social responsibility tend to be less tax aggressive. Firms that engage in more corporate social responsibility activities are less likely to be tax aggressive, irrespective of regulatory regimes in place. Moreover, pollution indicators have little effect on corporate social responsibility and tax aggressiveness in Chinese institutional settings. The study contributes to the business ethics literature by implying the role of tax avoidance as a part of CSR and not as a separate non-CSR element of companies’ activities.

Acknowledgment
This paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “Embracing EU corporate social responsibility: challenges and opportunities of business-society bonds transformation in Ukraine” – 101094100 – EECORE – ERASMUS-JMO-2022-HEI-TCH-RSCH-UA-IBA/ERASMUS-JMO-2022-HEI-TCHRSCH https://eecore.snau.edu.ua/