The impact of corporate governance structure on corporate social responsibility: An applied study on Egyptian companies

Abstract

The paper aims to examine the influence of governance structures on Corporate Social Responsibility Disclosures (CSRD) in Egypt. Specifically, it examines the extent to which ownership structures (institutional, managerial, block-holder, foreign, and governmental) and corporate board characteristics (size, independence, and CEO duality) impact CSRD of Egyptian publicly listed corporations. Using a sample of 88 firms from 2010 to 2017, the researchers find that foreign ownership, governmental ownership, and CEO duality have a positive effect on CSRD. Also, managerial ownership, the board size, and board independence have a negative influence on CSRD. Our results have important implications for policy makers and regulators to ensure improved governance structures. The results of the current study are robust to several tests and econometric analysis. Based on insights from neo-institutional theory, our findings generally support prior theoretical evidence that pressures exerted by external stakeholders and the government have a substantial effect in boosting firm-level CSR reporting as a legitimizing strategy in developing economies.