Board Characteristics and CSR Engagement on Firm Performance: Evidence from Norwegian Listed Firms

Abstract

This study investigates the effect of externally observable board characteristics and corporate social responsibility (CSR) on firm performance for Norwegian listed firms. Board regulations have influenced Norwegian listed firms’ board structure ever since the gender balance law was implemented in 2008. In 2013, the soft law on CSR reporting affected large firms’ relation to CSR engagement. Hence, this research will contribute to the understanding of the effect of these regulations on firm performance. The findings show no statistically significant results for board characteristics on firm performance. These findings indicate that the regulations have been successful in creating an optimal board composition. A positive significant relationship is found between CSR engagement and firm performance. The study further extends previous research by examine the effect of board characteristics on CSR engagement, finding a positive significant relationship on the number of board members and CSR.