Explaining the Mutual Relationship between Board Gender Diversity and Corporate Social Responsibility using the Simultaneous Equations System

Document Type : Original Article

Authors

1 PhD Candidate in Accounting, University of Tehran, Iran

2 Associate Professor in Accounting, University of Tehran, Iran (Corresponding Author)

3 Professor in Accounting, Salford University, Manchester, UK

4 Assistant Professor in Accounting, University of Tehran, Iran

Abstract

One of the issues that have gained a lot of attention in recent years is the board gender diversity. Many researchers believe that gender diversity in the board reinforces corporate social responsibility and on the other hand, gender diversity is one of the signs and effects of corporate social responsibility in the board, so there is a mutual relationship between board gender diversity and corporate social responsibility that has not been noticed up to this time. Our study fills this gap in literature by using the Simultaneous equations system. We use data from 110 companies listed in the Tehran Stock Exchange during the 2012 to 2017 period. The results indicate that board gender diversity and corporate social responsibility have a positive and significant effect on each other. As a result, companies can improve their social responsibility by increasing gender diversity in the board, and on the other hand to prove their social responsibility, it is better to use women on the board.

Keywords

References

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International Journal of Finance & Managerial Accounting
Volume 3, Issue 11
October 2018
Pages 1-10

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