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1 – 2 of 2Muhammad Jameel Hussain, Dongfang Nie and Adnan Ashraf
Foreign directors from developed nations are significant brain gains for Chinese firms because they improve board competency and board diversity. Therefore, the purpose of this…
Abstract
Purpose
Foreign directors from developed nations are significant brain gains for Chinese firms because they improve board competency and board diversity. Therefore, the purpose of this study is to explore the relationship between foreign directors from developed countries on Chinese listed firms and firms’ green commitment.
Design/methodology/approach
For the empirical analysis, first, this study applies ordinary least square regression and firm fixed model to explore the relationship between foreign directors and green commitment. For the endogeneity concerns, this study first added more control variable in the main model, then applied instrumental variable approach and propensity score matching technique.
Findings
This study predicts and finds that percentage of foreign directors from developed countries on Chinese listed firms’ board positively enhances the firms’ green commitment. Furthermore, this study also finds that the positive relationship between foreign directors and firms’ green commitment is more significant when firms are in a low competitive industry, have no financial constraints and are overseas-listed. This study’s findings are robust after controlling for endogeneity concerns.
Originality/value
This is new research on the impact of foreign directors on corporate green commitment.
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Keywords
Muhammad Jameel Hussain, Dongfang Nie, Gaoliang Tian and Adnan Ashraf
This paper aims to explore the relation between chief executive officer (CEO) tenure and the propensity to adopt the global reporting initiative (GRI) for corporate social…
Abstract
Purpose
This paper aims to explore the relation between chief executive officer (CEO) tenure and the propensity to adopt the global reporting initiative (GRI) for corporate social responsibility reporting in Chinese firms.
Design/methodology/approach
This study used Chinese A-listed firms as sample during 2010–2020. Considering the binary nature of dependent variable, logistic regression model is applied. For robustness, lagged value of independent and control variables, additional control variables and two stage least square regression are used.
Findings
This paper finds that CEO tenure is negatively related to the adoption of GRI reporting standards. Furthermore, this paper finds that this association is less pronounced when CEOs are female and when CEOs have foreign experience. Furthermore, this paper finds that this association is not significant when CEOs are female and when CEOs have foreign experience. This paper also finds that the relationship between CEO tenure and GRI adoption is more pronounced in state-owned enterprises in China. The findings in this paper are robust after controlling for endogeneity.
Practical implications
The study results are important for understanding the development and implementation of GRI framework especially in China.
Originality/value
To the best of the authors’ knowledge, this is the first study to deeply investigate how CEO tenure can affect adoption of GRI in Chinese firms.
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