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Corporate Social Disclosures by Banks: Between Legal Institution and Cultural Dimensions

  • Ismail Adelopo
  • Musa Obalola
  • Ramiro Cea Moure
Chapter
Part of the Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application book series (AFSGFTA)

Abstract

Recent studies have articulated the dearth of cross-country investigation of corporate social responsibility (CSR) disclosure behaviours in the broader CSR discourse. The impacts of national institutional frameworks on CSR disclosure behaviours also remain under-researched. Consequently, this study examines the impact of legal origin and culture on CSR disclosures by large banks in fourteen Western European countries. The study is based on the CSR disclosure and other firm-specific information in the sustainability and annual reports for 2005 and 2008 of the companies in the sample and uses multiple regression analysis. It finds that country’s legal origin and cultural dimension affect disclosure behaviours of banks. Surprisingly, banks in civil law origin countries make more employee and shareholders social disclosures than banks in both common law and Scandinavian countries. Banks in high-uncertainty avoidance cultures make more social disclosures than banks in low-uncertainty avoidance cultures, but no relationship is found between CSR disclosure and individualism/collectivism cultural dimensions. The study finds support for institutional theory and highlights the importance of cross-country studies in expanding the current CSR dialogue.

Keywords

Institutional effects CSR disclosure Cultural dimension and legal origin 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  • Ismail Adelopo
    • 1
  • Musa Obalola
    • 2
  • Ramiro Cea Moure
    • 3
  1. 1.Associate Professor of Accounting and FinanceUniversity of the West Of EnglandBristolEngland, UK
  2. 2.University of LagosLagosNigeria
  3. 3.University of AlcalaAlcalá de HenaresSpain

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