The Relationship Between Corporate Governance and Corporate Social Responsibility Expenditure in Bangladesh: Moderating Role of Firm Value. Issue 2 (December 2020)

• Record Type: Journal Article
• Authors: Hosain, Md Sajjad
• Is Part Of: Indian journal of corporate governance. Volume 13:Issue 2(2020)
• Page Start: 190
• Page End: 209
• Publication Date: 2020-12
• Subjects: Corporate governance -- corporate social responsibility -- corporate social responsibility expenditure -- firm value -- banking sector -- Bangladesh; Corporate governance -- Periodicals; Corporate governance; Electronic journals -- Business; Electronic journals -- Industry; Periodicals; 658.4
• DOI: 10.1177/0974686220965330
• Languages: English
• ISSNs: 0974-6862

Abstract

This article aims at identifying the relationship between corporate governance (CG) and corporate social responsibility expenditure (CSRE) for the Bangladeshi banking sector. CG has been considered as the single independent variable divided into three components: board size (BS), gender diversity (GD) and board members' interrelationship (BMI), and CSRE has been considered as the dependent variable. Further, a single moderator—firm value (FV) as been employed in order to test the moderating influence. Annual reports from 2015 to 2019 (5 years) of 35 banking firms have been used as samples. The study utilized Pearson's correlation coefficient in order to test the direct relationships and regression analysis to test the moderating effects. The analysis has revealed that BS and GD are positively associated with CSRE while BMI has a negative association with CSRE. Furthermore, has been revealed that FV can moderate all the direct relationships. The study is expected to aid researchers in further empirical investigation over this important issue and guide policymakers to obtain more representative outcomes to make constructive decisions regarding CG and CSRE that would, in turn, increase FV.