Do women on boards matter for corporate social responsibility reporting? Evidence from Palestine

Abstract

Purpose Content analysis was used to measure corporate social responsibility (CSR) reporting. The ordinary least squares (OLS) regressions with robust standard errors are used to examine the relationships for a sample of 168 firm-year observations listed on the Palestine Exchange during 2018–2021. A logistic regression is also utilized as an alternative measurement for CSR quantity disclosure and to ensure the robustness of the author’s main findings. Design/methodology/approach Based on 168 observations listed on the Palestine Exchange (PEX) between 2018 and 2021, this study examines the impact of women's representation on the CSR reporting of Palestinian firms' boards. Moreover, the moderating effect of ownership concentration on the relationship between BGD and CSR reporting is examined. In order to test the hypotheses, the author’s employ OLS regressions with robust standard errors. A logistic regression is also utilized as an alternative measurement for CSR quantity disclosure and to ensure the robustness of the author’s main findings. Findings The results reveal that Palestinian companies with more women on their boards have higher CSR practices and disclosure levels. In addition to the validity of agency, stakeholder and legitimacy theories, the findings show the relevance of gender socialization and critical mass theories in explaining the favorable influence of women's presentation on boards in promoting best practices among Palestinian firms, such as CSR disclosure. Research limitations/implications The study contributes to the limited literature in the MENA and Arab region countries by examining the influence of BGD on CSR reporting in Palestine, an emerging economy characterized by highly political and economic instability. The study offers a novel contribution by examining the impact of BGD, on not only the CSR reporting quantity but also the reporting quality. However, the generalizability of the study is limited due to the small sample size. Practical implications The findings of the study may bring the issues of CSR disclosure and female representation on board of directors to the attention of Palestinian firms' board of directors and managers, investors, professional associations, policymakers and regulators. While listed firms are only required to provide general information that falls under the scope of CSR in their annual reports under the Palestinian code of corporate governance, women representation on boards of directors is not addressed. Originality/value This study adds to the very limited literature on the role of the BGD in promoting CSR reporting in the Middle Eastern and Arabic markets in general, and in the Palestinian context in particular. This paper not only investigates but also seeks to theorize this role.