Do gender-diverse boards over-invest in corporate social responsibility (CSR)?

This study investigates the influence of "board gender diversity" on corporate social responsibility (CSR) over-investment and the extent of CSR reporting. The data are collected from listed companies in Mauritius for the period of 2007-2016. Content analysis is used to quantify CSR reporting in annual reports. The main finding of this study is that gender-diverse boards are associated with higher levels of CSR reporting and also with companies spending beyond the mandated requirements. This study also finds that firm size is positively associated with CSR reporting and CSR over-investment. There is no association between profitability and CSR reporting and particular industries have no impact on such relationship. The paper is among the first to consider CSR over-investment measured using objective criteria. The paper contributes to the scant literature on gender diversity in emerging economies. The findings have implications for companies and policy makers. For companies, it shows the importance of having gender-diverse boards to meet the CSR information needs of stakeholders and the expectations of society in general. Policy makers can use the findings when drafting regulations regarding board composition.