The impacts of corporate governance on corporate social responsibility disclosure in terms of employee and community aspects in China

This paper aims to analyse the impact of CG on CSR disclosure and compare employee and community aspects of CSR disclosure. On the basis of the listed companies in Beijing, China, this study identifies the good factors in CG and good CSR practices and mitigates the negative factors. The CSR disclosure quality could be measured by content analysis. Resources for CSR reports are derived from social responsibility reports, sustainability reports and annual reports of 98 companies from different industries from 2012 to 2016. Besides, regression analysis is applied to examine the relation between CG and CSR disclosure. The multiple regression results reveal that board independence and managerial ownership positively affect employee aspect disclosure, community aspect disclosure and total CSR disclosure, respectively. Moreover, there is no significant relationship between public ownership and employees’ aspect, community aspect or overall CSR disclosure, respectively. Board size has positive effects on CSR disclosure in employees’ aspect, while it is not relevant to the total CSR disclosure or the community involvement aspect disclosure. Besides, CEO duality has negative effects on CSR disclosure of the employees’ aspect, while it has no significant relation with the overall CSR disclosure or CSR disclosure in terms of the community involvement aspect. Therefore, it could be claimed that the number of directors for companies could be appropriately increased and companies could appropriately increase the number of independent directors, improving the monitoring of the CSR disclosure project. Additionally, the separation of CEO and chairman is still recommended and equity incentive could be considered as the reward policy for management. This paper provides a deeper study and comparison of the employee and community aspects of CSR disclosure and understands the impacts of CG on them specifically