Corporate Governance Configurations and Corporate Social Responsibility Disclosure: Qualitative Comparative Analysis of Audit Committee and Board characteristics

Abstract

[EN] Drawing on the complexity theory and responding to the recent calls to use such creative methods that mix between a quantitative and qualitative approach. Therefore, this study fills the literature gap, adding novelties, showing evidence from the unexplored (or underexplored) European context and, consequently, shedding light to inconclusive results in previous research concerning the effect of audit committee (AC) and board characteristics on corporate social responsibility (CSR) disclosure by applying a novel research methodology: the fuzzy set qualitative comparative analysis. The data were collected from Eikon database for a sample of the top 69 non¿financial European companies (based on market capitalisation) for the period 2016¿2018. The study results support the equifinality and complexity tenets of complexity theory. It also suggests that CSR disclosure relies on a complex configuration of some AC attributes, for example, independence, financial expert member, chair independence, size and activity, and other board characteristics (independence, gender, size, activity, and Chief Executive Officer (CEO) duality). These characteristics play a leading part as a recipe ingredient and, in an appropriate combination, promote achieving high CSR disclosure levels. Our empirical results offer multidimensional and valuable insights for professionals, regulators, and policymakers in establishing and revising the guidelines regarding the AC and board of directors' composition.