Abstract:
The objective of this study is to examine the impact of corporate governance
practices on corporate social responsibility of the listed banks, finance
and insurance companies in Sri Lanka over the period of 2013 to 2017.
A sample of 20 firms out of 72 banks, finance and insurance firms listed
on the Colombo Stock Exchange was considered for this study. The study
utilized secondary data which were collected from annual reports of the
sampled firm. Corporate social responsibility was measured by a 40-item
disclose index. Corporate governance practices were measured by board
size, board independence, women on board and size of audit committee.
Return on assets and firm size were considered as control variables. Results
of the study revealed that independent directors, return on assets and firm
size have significantly positively influenced corporate social responsibility.
Board size, women on the board and size of audit committee have not shown
any significant impact on corporate social responsibility. The result of this
study is deemed to benefit external investors and shareholders who will be
able to know that how the firm committed their Corporate Social Responsible
activities rather than profit maximization. Further the finding is useful for
interested people such as public, government, and other financial institutions.
Moreover, it will help to future researchers for further investigation related
to this topic.
