Abstract:
Purpose: The primary objective of this study is to investigate the nexus between corporate
governance and corporate social responsibility disclosure in Sri Lankan listed firms. Design/Methodology/Approach: Corporate governance was evaluated using the following
criteria: board size, board independence, role duality, women representation, audit
committee size, and ownership concentration. The Global Reporting Initiative (GRI)
methodology was utilized to assess Corporate Social Responsibility Disclosure (CSRD)
using content analysis. This study collects balanced panel data from 44 Sri Lankan listed
firms over a five-year period, from 2018 to 2022. Because of their highly regulated nature,
the banking, finance, insurance, and investment trust industries were omitted from the
sample. All of the information was gathered from yearly reports published on the Colombo
Stock Exchange's website in Sri Lanka. Findings: Test results suggest that board size, independence, and women representation have
no significant relationship with CSRD. Role Duality, Audit Committee Size and Ownership
Concentration exhibit a significant association with CSRD. Moreover, the mean value of the
CSRD is 44.56 percent for the selected listed companies in Sri Lanka. Originality: This study contributes to determining the extent to which companies have
adhered to the GRI as a widely acknowledged disclosure framework. It provides value to
the company's management in order for them to make better judgments on whether the firms
should involve them in more corporate governance disclosures in order to raise the degree
of CSR to enhance transparency and to promote stakeholders' well-being. The outcome also
has ramifications for regulatory agencies in developing obligatory reporting requirements
for all listed firms to comply with the GRI framework.
