H4 Companies those have 50 or more ownership to a particular group disclose

H4 companies those have 50 or more ownership to a

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H4: Companies those have 50% or more ownership to a particular group disclose significant CSR disclosure than the other companies. 4.5.5 Independent Non-Executive Directors A board is generally composed of inside and outside members. Kosnik (1990) argued that outside directors are more effective than inside directors in maximizing shareholders‗ wealth. In contrast, Klein (1998) suggests that inside directors can contribute more to a firm than outside directors due to their firm-specific knowledge and expertise. Ho and Wong (2001), Haniffa and Cooke (2002), Barako et al. (2006), Nazli and Weetman (2006), Prado- Lorenzo et al. (2009) did not find association between the proportion of outside non-executive directors and the extent of disclosure. Chen and Jaggi (2000); Cheng and Courtenay (2006) found a positive relationship between a board with a higher proportion of independent directors and comprehensive financial disclosure. In contrast, several other studies show independent non-executive directors on the board are negatively associated with the extent of management disclosures (Eng and Mak 2003). Variable Measurement In this study, an independent non-executive director is measured by the percentage of the board that means the number of independent non-executive director divided by board size. These observations suggest the following hypothesis: H5: Existence of independent non-executive director in the board has significant positive relation to the level of CSR disclosure.
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