This paper examines empirically the relationship between wide-ranging board diversity (e.g. gender, education-level, education background, age, tenure, nationality and ethnicity) and the quality of corporate social responsibility (CSR) disclosure variables in Malaysia after controlling for board and audit committee characteristics.

Using 200 listed firms in Bursa Malaysia during 2009 to 2013 periods and applying both OLS and 2SLS instrumental variables (IV) approaches, we document significantly positive effect of board education-level and board tenure diversity on the quality of CSR disclosure. Further analysis using Robust Regression also shows positive association between gender diversity and CSR disclosure. Our findings also demonstrate that the quality of CSR disclosure is significant negatively associated with board age and nationality diversity. Additional tests exhibit complementary relationship of education-level and nationality with gender while substitutive relationship of age and tenure with gender in influencing CSR.

These findings provide useful insights to the policy makers in setting regulations in respect to board diversity in Malaysia and other emerging economies in the Asian region. Our evidence is also useful for publicly listed companies in setting the criteria to identify directors who can support their strategic decisions.

Katmon, N., Mohamad, Z. Z., Norwani, N. M. and Farooque, O. A. (2017). “Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market”. Journal of Business Ethics, DOI:10.1007/s10551-017-3672-6.