The relationship between corporate governance and community engagement: Evidence from the Australian mining companies
Author(s)
Lin, Philip T
Li, Bin
Bu, Danlu
Griffith University Author(s)
Year published
2015
Metadata
Show full item recordAbstract
We investigate whether effective corporate governance mechanisms help improve firm-level community engagement activities, using a sample of Australian mining companies for the period 2005–2013. We firstly document that effective board structure and functionality positively contribute to mining companies׳ community engagement. Secondly, we analyze the components of community engagement and examine each of them individually with governance mechanisms. The results show that the effects on engagement with indigenous people and indirect economic are mostly significant and profound. Thirdly, we hypothesize that firm performance ...
View more >We investigate whether effective corporate governance mechanisms help improve firm-level community engagement activities, using a sample of Australian mining companies for the period 2005–2013. We firstly document that effective board structure and functionality positively contribute to mining companies׳ community engagement. Secondly, we analyze the components of community engagement and examine each of them individually with governance mechanisms. The results show that the effects on engagement with indigenous people and indirect economic are mostly significant and profound. Thirdly, we hypothesize that firm performance proxied by dividend yield can moderate the relationship between governance mechanisms and community engagement. Our empirical results support this hypothesis, suggesting that dividend yield mitigates the negative effects of the largest shareholders ownership and strengthens the positive effects of board size, board meeting and the presence of CSR committee on community engagement level.
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View more >We investigate whether effective corporate governance mechanisms help improve firm-level community engagement activities, using a sample of Australian mining companies for the period 2005–2013. We firstly document that effective board structure and functionality positively contribute to mining companies׳ community engagement. Secondly, we analyze the components of community engagement and examine each of them individually with governance mechanisms. The results show that the effects on engagement with indigenous people and indirect economic are mostly significant and profound. Thirdly, we hypothesize that firm performance proxied by dividend yield can moderate the relationship between governance mechanisms and community engagement. Our empirical results support this hypothesis, suggesting that dividend yield mitigates the negative effects of the largest shareholders ownership and strengthens the positive effects of board size, board meeting and the presence of CSR committee on community engagement level.
View less >
Journal Title
Resources Policy
Volume
43
Subject
Resources engineering and extractive metallurgy
Finance
Policy and administration