le 03 avril 2018 Amal Boukadhaba, doctorante - Le Mans Université
« Does Employee Board Representation Matter for the Relevance of CSR Reporting ? »
Despite the fact that corporate social responsibility (CSR) reporting is directed to different key stakeholders, shareholders and employee may perceive differently such communication.
A high social reporting could reflect an over investment in CSR activities (training, working conditions, etc) for the advantage of employees and at the expense of shareholders who ultimately bear the costs. The appointment of employees on board may then influence the market value relevance of CSR disclosure.
In our paper, we examine the moderating role of employee directors on the relationship between the level of CSR disclosure and the market value of the firm. Using 91 French listed firms in SBF 120 from 2001 to 2011, we document that firms with employee directors exhibit higher levels of disclosure on CSR activities than their counterparts.
While the board employee representation plays an important role in the relevance of CSR information, the marginal effect on the relationship between CSR reporting and market value differs among CSR categories.
Our results show that reporting on environmental and on sustainability information is more relevant than reporting on social activities when employees are represented on the board.
Our findings support the evidence that a higher level of social reporting indicates more advantages for employees than for shareholders bearing all the costs behind.
KEY WORDS : Voluntary disclosure, corporate social responsibility, employee directors, market value
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