This theory, it is generally believed that a greater

This section will outline the approaches and results of previous
research in the area. The existing literature will form the basis for the
development of hypotheses to be tested.

4.1
Ownership concentration and corporate social responsibility disclosure (CSRD)

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Findings from previous research regarding ownership concentration and
CSRD are mixed. In a recent study, Majeed and colleagues (2015) found a positive
relationship using a sample of 100 listed Pakistani companies. This is in line
with the findings of others (Said et al., 2009). Brammer and
Pavelin (2006), on the other
hand, reported that the extent of disclosure is influenced negatively by
concentrated ownership, while Dias, Rodrigues and Craig (2017) found ownership
concentration not to be significant. Given that Brammer and Pavelin used a
sample of large companies from a developed economy, I hypothesize that the
effects will be similar using my selected sample:

H1. There is a negative relationship
between ownership concentration and the level of CSR disclosure.

4.2
Independent directors and corporate social responsibility disclosure (CSRD)

According to agency theory, it is generally believed that a greater
proportion of independent directors, who are neither employed by nor affiliated
to the company in any way, will strengthen the board by improving monitoring of
management (Rosenstein and Wyatt, 1990), resulting in
more disclosure and transparency. An extensive study of 2952 US firms reported
that there was a significant positive relationship between board independence
and CSR involvement (Jo and Harjoto, 2011). Jo and Harjoto
did not investigate CSR disclosure, but other less extensive studies of CSRD
have found similar results (Said et al., 2009; Khan, Muttakin and Siddiqui, 2013). In line with
previous studies, I hypothesize the following relationship:   

H2. There is a positive relationship
between the proportion of independent directors and the level of CSR
disclosure.

4.3 Female directors and corporate social
responsibility disclosure (CSRD)

 Female directors are believed to
add to board diversity, thereby preventing groupthink. Siciliano (1996) found evidence
that board diversity is positively linked with corporate social reporting and
performance, using a sample of 240 organizations. Carter, Simkins and Simpson (2003) argue that board
diversity “increases board independence because people with a different gender,
ethnicity, or cultural background might ask questions that would not come from
directors with more traditional backgrounds.” Thus, I hypothesize the following
relationship between the proportion of female directors (and hereby board
diversity) and CSRD:

H3. There is a positive relationship
between the proportion of female directors and the level of CSR disclosure.

4.4 Institutional ownership and corporate social
responsibility disclosure (CSRD)

Coffey and Fryxell (1991) argue that the
fact that CSR influences institutional investment decisions “has become
commonplace in the literature.” Cox, Brammer and Millington (2004) investigate the
link between institutional ownership and CSR behavior using a sample of over
500 UK firms. They suggest a positive relationship between long-run
institutional investment CSR performance, arguing that institutional investors
prefer firms with satisfying CSR performance. Given this suggested
relationship, I hypothesize:

H4. There is a positive relationship between the proportion of
institutional owners and CSR