Impact of board independence on the quality of community disclosures in annual reports

Yekini, Kemi C. and Adelopob, Ismail and Andrikopoulos, Panagiotis (2015) Impact of board independence on the quality of community disclosures in annual reports. Accounting Forum, 39 (4). pp. 249-267. ISSN 1467-6303

[img]
Preview
PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Available under Licence Creative Commons Attribution Non-commercial No Derivatives.
Download (1MB) | Preview

Abstract

This study investigates the link between board independence and the quality of community disclosures in annual reports. Using content analysis and a panel dataset from UK FTSE350 companies the results indicate a statistically significant relationship between board independence, as measured by the proportion of nonexecutive directors, and the quality of community disclosures, while holding constant other corporate governance and firm specific variables. The study indicates that companies with more non-executive directors are likely to disclose higher quality information on their community activities than others. This finding offers important insights to policy makers who are interested in achieving optimal board composition and furthers our understanding of the firm’s interaction with its corporate and extended environment through high-quality disclosures. The originality of this paper lies in the fact that it is the first to specifically examine the relationship between outside directors and community disclosures in annual reports. The paper contributes both to the corporate governance and community disclosure literature.

Item Type: Article
Keywords: Corporate governance; Non-executive directors; Board composition; Disclosure quality; Community disclosures; Stakeholders theory; Panel study
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number: 10.1016/j.accfor.2015.05.004
Depositing User: Yekini, Kemi
Date Deposited: 02 Feb 2018 09:26
Last Modified: 02 Feb 2018 13:26
URI: http://eprints.nottingham.ac.uk/id/eprint/49489

Actions (Archive Staff Only)

Edit View Edit View