#4576. Board reforms around the world: The effect on corporate social responsibility

August 2026publication date
Proposal available till 19-05-2025
4 total number of authors per manuscript0 $

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Journal’s subject area:
Business, Management and Accounting (all);
Strategy and Management;
Management of Technology and Innovation;
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Abstract:
This study examines the effects of major board reforms on firms corporate social responsibility (CSR) performance in countries around the world. Using a difference-in-differences design, we find robust evidence that worldwide board reforms can have significant effects on various stakeholders, resulting in increased firm CSR performance in both the environmental and social dimensions. Our results hold for both first board reforms and major reforms, across different types of reforms, and across various dimensions of CSR performance. Further analyses show that reforms strengthen the relationship between CSR performance and future financial performance. We find that board reforms increase a firms likelihood of integrating CSR criteria in executive compensation. The findings of this study suggest that worldwide board reforms that aim to increase shareholders value can also have significant effects on various stakeholders, resulting in increased firm CSR performance in both the environmental and social dimensions, a non-financial dimension of firm performance. In addition, our findings suggest that the effectiveness of reforms on CSR varies with both firm- and country-level characteristics related to the relative influence of external shareholders.
Keywords:
corporate governance; corporate social responsibility; CSR contracting; insiders; sustainability

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