Afzalur Rashid

The influence of ownership structures and board practices on corporate social disclosures in Bangladesh

Purpose – This study examines the influences of ownership concentration and the imposition of regulation on corporate governance (especially appointments of independent outside directors into the board) on voluntary corporate social disclosures (CSD) practices in Bangladesh. Design/methodology/approach – CSD indices are developed using content analysis in terms of different attributes reported in the sample companies’ annual reports. Consistent with earlier studies, a checklist of items is constructed to assess the extent of CSD in annual reports. A two-stage least square (2SLS) regression analysis is used to examine the extent of the influences on CSD practices due to differing ownership structures and changed board compositions upon a notification of good corporate governance principles by the regulatory body in Bangladesh. To compare the differences on CSD practices before and after the imposition of regulation two periods (pre-notification from 2004 to 2005 and post-notification from 2006 to 2007) are considered for the analysis. Findings – The results show that although ownership structures have small influence on CSD practices, but the imposition of regulation on good corporate governance can significantly influence such practices. Practical implications – This suggests that without regulation (imposed or otherwise) companies have no incentives to provide voluntary social disclosures in annual reports in a developing country context. Original/value of paper – This study contributes to the literature on the practices of CSD in the context of developing countries. As well, this study supports the theory of pro-regulation on corporate governance.

Corporate Governance in Bangladesh: A Quest for the Accountability or Legitimacy Crisis?

Purpose – This study aims at presenting an overview, development, and process of current corporate governance practices in Bangladesh. Design/Methodology/Approach – Based on New Institutional Sociology (NIS) as a theoretical framework and by using archival data, this study highlights the roles of key institutional forces in reinforcing the existing corporate governance practices in Bangladesh. Findings – This study notes that corporate governance practices in Bangladesh are still at infancy. While Bangladesh is trying to adopt many international corporate governance best practices for institutional legitimacy, the weak institutional enforcement regime, along with the absence of an effective check and balance, poses serious challenges to the firm-level good corporate governance practices in Bangladesh. The absence of isomorphic pressures to regulate the firms leads to many incidences of noncompliance. Practical implications – This study takes part in the following global debate: whether corporate governance in an emerging economy is a reality or an illusion. Originality/Value – This study seeks to contribute to the increasing literature by recognizing the interest of readers, academics, practitioners, and regulators to gain more insight and understanding of corporate governance practices in an emerging economy, such as Bangladesh.

The influence of stakeholder power on corporate social responsibility: evidence from a relationship-based economy

Purpose - – This study aims to examine whether lenders’ power and other attributes influence corporate social responsibility (CSR) reporting in Bangladesh. Design/methodology/approach - – This study uses content analysis to examine specific CSR-related attributes from 115 publicly listed firms in Bangladesh. By using various attributes of social and environmental reporting a disclosure index is also constructed. This study uses an Ordinary Lease Square Regression analysis to examine the relationship between stakeholders’ power and CSR reporting. Findings - – The finding is that lenders’ power, or the extent of borrowing, does not influence CSR exposure. However, lenders’ cost of monitoring and ability to monitor significantly and positively influence CSR exposure. Research limitations/implications - – This study is subject to some limitations, such as the subjectivity or judgement associated in the coding process. Practical implications - – The implication of this study is that, when multiple borrowing creates “claim-dilution” problems, lenders are found to influence CSR activity. Originality/value - – This study also supports the stakeholder theory and contributes to the literature on the practices of CSR reporting in the context of developing countries.

The influence of corporate governance practices on corporate social responsibility reporting

Purpose This study investigates if the ‘corporate governance practices’ has any influence on firm corporate social responsibility (CSR) reporting by listed firms in Bangladesh. Design/methodology/approach This study employs a content analysis to examine specific Corporate Social Responsibility (CSR)-related attributes from 101 publicly listed non-financial firms in Bangladesh. By using various attributes of social and environmental reporting a disclosure index is also constructed. Findings The finding of this study is that, ‘corporate governance practices’ do not have any influence on firm CSR reporting. The findings, in particular, show that CSR disclosure by firms is not responsive to new corporate governance regulations. Research limitations/implications This is study is subject to some limitations, such as the subjectivity or judgement associated in the coding process. Practical implications The implication of this study is that firm CSR practices are legitimization exercises and firms will not make i...

Does corporate social responsibility reporting enhance shareholders’ value?: A simultaneous equation approach

Purpose This study examines whether corporate social responsibility (CSR) and relevant reporting enhances firms’ economic performance among the listed firms in Bangladesh. Design/methodology/approach This study employs a content analysis to examine specific CSR-related attributes from 115 non-financial publicly listed firms in Bangladesh. Firm CSR reporting is evaluated against accounting and market performance measures, with a simultaneous equation approach used to control the potential endogeniety problem. Findings This study finds that CSR reporting significantly influences firm performance under both performance measures, although a firm’s economic performance does not influence CSR reporting. Research limitations/implications This is study is subject to some limitations, such as the subjectivity or judgement associated in the coding process. Practical implications The findings imply that, although CSR reporting by firms in Bangladesh is discretionary in nature, the ones that report add value to their...

Corporate board gender diversity and corporate social responsibility reporting in Malaysia

Abstract This study aims to examine the impact of board gender diversity on Corporate Social Responsibility (CSR) reporting by public listed companies of Bursa Malaysia over the period 2008–2013. Content analysis was used to determine the extent of CSR reporting. A reporting level index consisting of 51 items was developed based on six themes: General, Community, Environment, Human Resources, Marketplace, and Other. An ordinary least square regression was employed to determine the association between both gender diversity and educational background, and CSR reporting. The results reveal that the proportion of female directors and directors’ educational background are not associated with CSR reporting levels. The findings are consistent with the critical mass theory which argues that a mass of three or more women can cause a fundamental change in boardroom dynamics. As representation of women on corporate boards in Malaysia is very limited at this moment, regulators and policymakers should be more stringent in monitoring board diversity. On the whole, this study proposes that a well-managed diversity contributes to an effective board, thus serving to safeguard all stakeholders’ interests. This study provides new insights and contributes to the literature on the practices of boardroom diversity and corporate social responsibility reporting in the context of a semi-developed country.