Abstract:
This study intends to investigate the effect of corporate governance (CG) on corporate social
responsibility (CSR) disclosures of Australian and Sri Lankan listed firms for the period of 2020
to 2016. This study's comparison data comes from 100 Australian (ASX200-listed) firms and 100
Sri Lankan firms (Colombo-stock-exchange-listed firms). A quantitative research strategy
employing secondary data is used to answer the study questions. Prior CSR literature was used to
develop the checklist. Multiple regression analysis is used in this study to look into the
relationship between various governance variables such as board size, board independence, CEO
duality and the proportion of female directors, and the extent of CSR disclosures. It was found
that the size of the board, board independence, and the number of female directors of the
Australian firms have significant effects on the amount of CSR disclosures made than the Sri
Lankan firms. CEO duality, on the other hand, appears to be insignificantly related with the degree
of CSR disclosures in Australian and Sri Lankan firms, according to the results. This study
addresses a gap in the literature by providing comparative study on the influence of CG on CSR
disclosures. It also warns regulators, and practitioners in the emerging countries to pay more
attention to CG reforms and enforcement, as well as enhance institutional constraints on CSR
adaptation.
