Corporate Governance and Corporate Political Responsibility

Journal Publication ResearchOnline@JCU
Ali, Hesham;Adegbite, Emmanuel;Nguyen, Tam Huy
Abstract

This study investigates the pivotal policy question of whether a firm’s corporate governance influences its political spending disclosures. Using a sample of S&P 500 firms from 2011 to 2019, we find empirical evidence that a board of directors’ monitoring and resource provision roles affect a firm’s political spending disclosure. Extending agency theory-driven expectations, we provide evidence that measures of a board’s monitoring role such as female monitoring directors, shorter board tenure, audit committee size, audit committee meetings, and audit committee education enhance a firm’s political spending disclosures. Second, drawing from resource dependence theory and examining a board’s resource provisions, we find evidence that female advisory directors, CEO duality, additional directorships, and audit committee characteristics (i.e., size, number of meetings, age, and education) promote political spending disclosures. The study contributes to corporate governance and corporate political activity literatures by outlining different types of governance that may drive a firm’s political spending disclosures, a key component of a firm’s political responsibility.

Journal

Business & Society

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Volume

62

ISBN/ISSN

1552-4205

Edition

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Issue

7

Pages Count

45

Location

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Publisher

Sage Publications

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Publisher Location

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Publish Date

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Date

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EISSN

N/A

DOI

10.1177/00076503231157725