Effects of Activist shareholding on corporate social responsibility reporting Practices: An empirical study in spain

Authors

  • José Manuel Prado-Lorenzo Ciencias Económicas y Empresariales, Universidad de Salamanca.
  • Isabel María García-sánchez Ciencias Económicas y Empresariales, Universidad de Salamanca
  • Isabel Gallego Álvarez Ciencias Económicas y Empresariales, Universidad de Salamanca

DOI:

https://doi.org/10.46631/jefas.2012.v17n32.01

Keywords:

Corporate social responsibility reporting, activist shareholder, ownership structure, corporate governance

Abstract

New business practices are mainly characteristic of large firms, especially those quoted on the stock market. Listed companies show a higher commitment to corporate social responsibility (CSR) practices because capital markets allow activists to become a firm’s socially oriented shareholders. These actors, although small in number, have a significant influence over other larger block-holders. Recent decades have witnessed a significant increase in societal pressure to control the behavior of companies owing to the risks deriving from the economic, social and environmental effects of their business activity. The aim of this work is to test the effect that CSR activist shareholders have on the decision to disclose corporate social responsibility information in the Spanish context, controlling for the rest of the dimensions in Ullmann’s theoretical framework.

Downloads

Download data is not yet available.

References

Adams, C. A. (2002). Internal Organisational Factors Influencing Corporate Social and Ethical Reporting. Accounting, Auditing and Accountability, 15(2),223-250.

Adams, C. A., Hill, W. Y., & Roberts, C. B. (1995). Environmental Employee and Ethical Reporting in Europe. ACCA Research Report 41. London: Charteredn Association of Certified Accountants.

Adams, C. A., Hill, W. Y., & Roberts, C. B. (1998). Corporate Social Reporting Practices in Western Europe: Legitimating corporate behaviour? British Accounting Review, 30 (1), 1-21.

Alcabés, N. (2005). La empresa socialmente responsable: Una propuesta de autoevaluación. Cuadernos de

Difusión, 18-19 (10), 155-161.

Archel, P. (2003). La divulgación de la información social y medioambiental en la gran empresa española en el

período 1994-1998: Situación actual y perspectivas. Revista Española de Financiación y Contabilidad,

XXXII(117), 571-601.

Archel, P., & Lizarraga, F. (2001). Algunos determinantes de la información medioambiental divulgada por las

empresas españolas cotizadas. Revista de Contabilidad, 44 (7), 129-153.

Belkaoui, A., & Karpik, P. G. (1989). Determinants of the Corporate Decision to Disclose Social Information.

Accounting, Auditing and Accountability Journal, 2 (1), 36-51.

Christopher, T., & Hassan, S. (1996). Determinants of Voluntary Cash Flow Reporting: Australian Evidence. Accounting Research Journal, 19, 113-124.

Craswell, A. T., & Taylor, S. L. (1992). Discretionary Disclosure by Oil and Gas Companies: An Economic Analysis.

Journal of Business Finance and Accounting, 19,296-308.

Collett, P., & Hrasky, S. (2005). Voluntary Disclosure of Corporate Governance Practices by Listed Australian Companies. Corporate Governance. An International Review, 13(2), 188-196. Corporate Social Disclosure Practice: A Comparative

International Analysis. (1990) Advances in Public Interest Accounting, 3, 159-175.

Cowen, S., Ferreri, L., & Parker, L. D. (1987). The Impact of Corporate Characteristics on Social Responsibility

Disclosure: A Typology and Frequency-based Analysis. Accounting, Organizations and Society,

(2), 111-122.

Davis, G. F., & Thompson, T. A. (1994). A Social Movement Perspective on Corporate Control. Administrative

Science Quarterly, 39(1), 141-173.

Deegan, C., & Gordon, B. (1996). A Study of the Environmental Disclosure Practices of Australian Corporations. Accounting and Business Research, 26(3),187-199.

Fama, E., & Jensen, M. (1983). Separation of Ownership and Control. Journal of Law and Economics, 26,

-326.

Freeman, R. E. (1984). Strategic Management. A Stakeholder Approach. Marshfield, MA: Pitman.

Freedman, M., & Jaggi, B. (1988). An Analysis of the Association between Pollution Disclosure and

Economic Performance. Accounting, Auditing and Accountability Journal, 1(2), 43-58.

Frost, G. R. (1999). Environmental Reporting: An Analysis of Company Annual Reports of the Australian

Extractive Industries 1985-1994. (Doctoral Thesis). Portland, ME: University of New England.

Gallego I. (2006). The Use of Economic, Social and Environmental Indicators as a Measure of Sustainable Development in Spain. Corporate Social Responsibility and Environmental Management, 13, 78–97.

García-Sánchez, I. M. (2008). Corporate Social Reporting: Segmentation and Characterization of Spanish

Companies. Corporate Social Responsibility and Environmental Management, 15, 187-198.

García-Sánchez, I. M., Gallego-Álvarez, I., & Prado-Lorenzo, J. M. (2008). The Divulgation of Information on

Corporate Social Responsibility Viewed through the Theory of Political Costs. In Corporate Social Responsibility. New York: New Science Publishers.

Gray, R. H., Owen, D. L., & Adams, C. (1996). Accounting and Accountability: Changes and Challenges in Corporate Social and Environmental Reporting.Hemel Hempstead, UK: Prentice Hall.

Guthrie, J., & Parker, L. D. (1989). Corporate Social Reporting; A Rebuttal of Legitimacy Theory. Accounting and Business Research, 19 (76), 343-352.

Hackston, D., & Milne, M. J. (1996). Some Determinants of Social and Environmental Disclosures in New

Zealand Companies. Accounting, Auditing and Accountability Journal, 9(1), 77-108.

Keim, G. (1978). Managerial Behaviour and the Social Responsibilities Debate: Goals versus Constraints.

Academy of Management Journal, 57-68.

Lee, M-D. P. (2009). Does Ownership Form Matter for Corporate Social Responsibility? A Longitudinal Comparison of Environmental Performance between Public, Private and Joint-venture Firms. Business

and Society Review, 114(4), 435-456.

Liu, X., & Anbumozhi, V. (2009). Determinant Factors of Corporate Environmental Information Disclosure:

An Empirical Study of Chinese Listed Companies. Journal of Cleaner Production, 17, 593-600.

Logsdon, J. M., & Van Buren, H. J. (2008). Justice and Large Corporations: What do Activist Shareholders

Want? Business and Society, 47(4), 523-553.

Milne, M. J., & Adler, R. W. (1999). Exploring the Reliability of Social and Environmental Disclosures Content

Analysis. Accounting, Auditing and Accountability Journal, 12(2), 237-256.

Pfeffer, J. (1981). Power in Organizations. Marshfield, MA:Pitman.

Prado, J. M., Gallego, I., & García, I. (2009a). Stakeholder Engagement and Corporate Social Responsibility Reporting: The Ownership Structure Effect. Corporate Social Responsibility and Environmental

Management, 16, 94-107.

Prado, J. M., García, I., & Gallego, I. (2009b). Características del consejo de administración e información en materia de responsabilidad social corporativa. Revista Española de Financiación y Contabilidad,

(141), 107-135.

Qu, R. (2007). Effects of Government Regulations, Market Orientation and Ownership Structure on Corporate

Social Responsibility in China: An Empirical Study. International Journal of Management, 24(3), 582- 591.

Roberts, R. W. (1992). Determinants of Corporate Social Responsibility Disclosure: An Application of Stakeholder Theory. Accounting, Organizations and Society, 17(6), 595-612.

Solomon, J. F. (2006). Private Social, Ethical and Environmental Disclosure. Accounting, Auditing &

Accountability Journal, 19(4), 564-591.

Shocker, A. D., & Sethi, S. P. (1973). An Approach to Incorporating Social Preferences in Developing

Action Strategies. California Management Review, Summer, 97-105.

Tran, B. (2009). Green Management: The Reality of Being Green in Business. Journal of Economics, Finance

and Administrative Science, 14(27), 21-45.

Trotman, K. T., & Bradley, G. W. (1981). Associations between Social Responsibility Disclosure and Characteristics of Companies. Accounting, Organizations and Society, 6(4), 355-362.

Ullmann, A. A. (1985). Data in Search of a Theory: A Critical Examination of the Relationships among

Social Performance, Social Disclosure, and Economic Performance of U.S. Firms. The Academy of Management Review, 10(3), 540-557.

Van der Laan Smith, J., Adhikari, A., & Tondkar, R. H. (2005). Exploring Differences in Social Disclosures

Internationally: A Stakeholder Perspective. Journal of Accounting and Public Policy, 24(2), 123-151

Downloads

Published

2012-06-30

How to Cite

Prado-Lorenzo, J. M. ., García-sánchez, I. M. ., & Gallego Álvarez, I. . (2012). Effects of Activist shareholding on corporate social responsibility reporting Practices: An empirical study in spain. Journal of Economics, Finance and Administrative Science, 17(32), 7–16. https://doi.org/10.46631/jefas.2012.v17n32.01