Is corporate governance a significant factor in corporate social responsibility disclosure? Insights from China

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This comprehensive study delves into the intricate relationship between corporate governance and Corporate Social Responsibility Disclosure (CSRD) within the framework of China’s institutional landscape. By analyzing an extensive dataset comprising 35,435 firm-year observations from 3,889 A-share listed companies spanning the years 2006 to 2019, the research scrutinizes various governance mechanisms, including board size, independence, CEO duality, and ownership concentration.
The investigation affirms that larger boards and a higher proportion of independent directors exert a positive influence on CSRD. In contrast, a substantial shareholding ratio held by the largest shareholder proves to be a hindrance to the transparent disclosure of CSR initiatives. While the impact of CEO duality on CSRD is noted, the statistical significance of this relationship remains inconclusive.
These findings underscore the nuanced dynamics of governance and ownership structures in shaping CSR initiatives. The findings highlight the nuanced impact of governance and ownership structures on CSR initiatives, offering valuable insights for managers and policymakers navigating CSR strategies in China’s business landscape. The insights garnered from this study hold valuable implications for both corporate managers and policymakers navigating the landscape of CSR strategies within the unique contours of China’s business environment.

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/
Oleh PASKO expresses sincere gratitude for the support received from the Kirkland Research Program, generously provided by the Leaders of Change Foundation established by the Polish-American Freedom Foundation.

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    • Table 1. Sustainability assurance reports by year
    • Table 2. Sustainability reporting by industry
    • Table 3. Definition of variables
    • Table 4. Descriptive statistics
    • Table 5. Correlation test
    • Table 6. Regression results and robust test
    • Table A1. Sample distribution
    • Conceptualization
      Oleh Pasko, Tetyana Kharchenko
    • Funding acquisition
      Oleh Pasko
    • Investigation
      Oleh Pasko, Tetyana Kharchenko, Oleksandr Kovalenko, Viktoriia Tkachenko, Oleksandr Kuts
    • Methodology
      Oleh Pasko, Tetyana Kharchenko, Oleksandr Kovalenko
    • Project administration
      Oleh Pasko, Tetyana Kharchenko, Viktoriia Tkachenko
    • Supervision
      Oleh Pasko
    • Visualization
      Oleh Pasko, Tetyana Kharchenko, Oleksandr Kovalenko, Viktoriia Tkachenko, Oleksandr Kuts
    • Writing – original draft
      Oleh Pasko, Tetyana Kharchenko, Oleksandr Kovalenko, Viktoriia Tkachenko, Oleksandr Kuts
    • Writing – review & editing
      Oleh Pasko
    • Resources
      Oleh Pasko
    • Data curation
      Tetyana Kharchenko, Oleksandr Kovalenko, Oleksandr Kuts
    • Formal Analysis
      Tetyana Kharchenko, Viktoriia Tkachenko, Oleksandr Kuts
    • Software
      Tetyana Kharchenko, Viktoriia Tkachenko, Oleksandr Kuts
    • Validation
      Tetyana Kharchenko, Oleksandr Kovalenko, Viktoriia Tkachenko, Oleksandr Kuts