The The Gender Power in Managerial Entrepreneurship and Corporate Social Responsibility Relationships

An Empirical Study in Indonesia

  • Evan Nicholas Diharjo University of Surabaya
  • Riesanti Edie wijaya Universitas Surabaya
Keywords: corporate social responsibility, managerial entrenchment, board gender diversity, corporate image


Corporate Social Responsibility is one of the important things for companies to disclose. Corporate image can also be influenced by the CSR. Some CEOs have done entrenchment or benefited themselves by using CSR as a tool. Gender diversity on the board of directors is also able to influence the two relationships. This study aims to determine the effect of board gender diversity on the relationship between corporate social responsibility and managerial entrenchment. The population that is the object of this research is a non-financial company listed on the Indonesia Stock Exchange and the company issued a sustainability report from 2018 to 2020. The sample was obtained as many as 133 samples and met the sampling criteria. The model used in this study is panel data regression. CSR calculations are carried out by following the guidelines from GRI G4. ME calculation based on CEO tenure. The results of the study indicate that there is no significant effect of board gender diversity on the relationship between corporate social responsibility and managerial entrenchment.


Adams, R. B., & Ferreira, D. (2004). Gender diversity in the boardroom. European Corporate Governance Institute, Finance Working Paper, 57, 30.
Adhikari, B. K., Agrawal, A., & Malm, J. (2019). Do women managers keep firms out of trouble? Evidence from corporate litigation and policies. Journal of Accounting and Economics, 67(1), 202–225.
Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago press.
Berger, P. G., Ofek, E., & Yermack, D. L. (1997). Managerial entrenchment and capital structure decisions. The Journal of Finance, 52(4), 1411–1438.
Bowen, H. R. (2013). Social responsibilities of the businessman. University of Iowa Press.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497–505.
Cespa, G., & Cestone, G. (2007). Corporate social responsibility and managerial entrenchment. Journal of Economics & Management Strategy, 16(3), 741–771.
Chahine, S., Fang, Y., Hasan, I., & Mazboudi, M. (2019). Entrenchment through corporate social responsibility: Evidence from CEO network centrality. International Review of Financial Analysis, 66, 101347.
Chaves, R., & Sajardo‐Moreno, A. (2004). Social economy managers: Between values and entrenchment. Annals of Public and Cooperative Economics, 75(1), 139–161.
Chen, J., Leung, W. S., Song, W., & Goergen, M. (2019). Why female board representation matters: The role of female directors in reducing male CEO overconfidence. Journal of Empirical Finance, 53, 70–90.
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23.
Chiu, S. S., Pathak, S., Hoskisson, R. E., & Johnson, R. A. (2020). Managerial commitment to the status quo and corporate divestiture: can power motivate openness to change? The Leadership Quarterly, 101459.
Conte, F., Costantini, G., Rinaldi, L., Gerosa, T., & Girelli, L. (2020). Intellect is not that expensive: differential association of cultural and socio-economic factors with crystallized intelligence in a sample of Italian adolescents. Intelligence, 81, 101466.
Cui, J., Jo, H., & Na, H. (2018). Does corporate social responsibility affect information asymmetry? Journal of Business Ethics, 148(3), 549–572.
Di Meo, F., Lara, J. M. G., & Surroca, J. A. (2017). Managerial entrenchment and earnings management. Journal of Accounting and Public Policy, 36(5), 399–414.
Eagly, A. H., & Wood, W. (2011). Social role theory. Handbook of Theories in Social Psychology, 2, 458–476.
Eagly, A. H., Wood, W., & Diekman, A. B. (2000). Social role theory of sex differences and similarities: A current appraisal. The Developmental Social Psychology of Gender, 12, 174.
Faccio, M., Marchica, M.-T., & Mura, R. (2016). CEO gender, corporate risk-taking, and the efficiency of capital allocation. Journal of Corporate Finance, 39, 193–209.
Fredrickson, J. W., Hambrick, D. C., & Baumrin, S. (1988). A model of CEO dismissal. Academy of Management Review, 13(2), 255–270.
García‐Sánchez, I., Hussain, N., Khan, S. A., & Martínez‐Ferrero, J. (2020). Managerial entrenchment, corporate social responsibility, and earnings management. Corporate Social Responsibility and Environmental Management, 27(4), 1818–1833.
Gargouri, R. M., Shabou, R., & Francoeur, C. (2010). The relationship between corporate social performance and earnings management. Canadian Journal of Administrative Sciences/Revue Canadienne Des Sciences De l’Administration, 27(4), 320–334.
Gujarati, D. N., & Porter, D. (2009). Basic Econometrics Mc Graw-Hill International Edition.
Hambrick, D. C. (2007). Upper echelons theory: An update. In Academy of management review (Vol. 32, Issue 2, pp. 334–343). Academy of Management Briarcliff Manor, NY 10510.
Handelman, J. M., & Arnold, S. J. (1999). The role of marketing actions with a social dimension: Appeals to the institutional environment. Journal of Marketing, 63(3), 33–48.
Huang, J., & Kisgen, D. J. (2013). Gender and corporate finance: Are male executives overconfident relative to female executives? Journal of Financial Economics, 108(3), 822–839.
Hudgens, G. A., & Fatkin, L. T. (1985). Sex differences in risk taking: Repeated sessions on a computer-simulated task. The Journal of Psychology, 119(3), 197–206.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Johnson, H. L. (1971). Business in contemporary society: Framework and issues. Wadsworth Publishing Company.
Kachouri, M., Salhi, B., & Jarboui, A. (2020). The impact of gender diversity on the relationship between managerial entrenchment and corporate social responsibility: Evidence from UK companies. Journal of Global Responsibility.
Kebbe, R. W. (2017). CEO gender and managerial entrenchment.(c2017). Lebanese American University.
Koenig, A. M., & Eagly, A. H. (2014). Evidence for the social role theory of stereotype content: observations of groups’ roles shape stereotypes. Journal of Personality and Social Psychology, 107(3), 371.
Lanis, R., & Richardson, G. (2012). Corporate social responsibility and tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy, 31(1), 86–108.
Larrieta‐Rubín de Celis, I., Velasco‐Balmaseda, E., Fernández de Bobadilla, S., Alonso‐Almeida, M. del M., & Intxaurburu‐Clemente, G. (2015). Does having women managers lead to increased gender equality practices in corporate social responsibility? Business Ethics: A European Review, 24(1), 91–110.
Laskowski, N. G. (2020). Moral constraints on gender concepts. Ethical Theory and Moral Practice, 23(1), 39–51.
Mafrolla, E., Matozza, F., & D’Amico, E. (2016). Enterprise risk management in private firms: Does ownership structure matter? Journal of Applied Business Research (JABR), 32(2), 671–686.
Manita, R., Bruna, M. G., Dang, R., & Houanti, L. (2018). Board gender diversity and ESG disclosure: evidence from the USA. Journal of Applied Accounting Research.
Martínez-Ferrero, J., & García-Sánchez, I.-M. (2015). Is corporate social responsibility an entrenchment strategy? Evidence in stakeholder protection environments. Review of Managerial Science, 9(1), 89–114.
Onoja, A. I., Ashiko, E. I., & Shakpande, C. (2020). CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY OF QUOTED NIGERIAN FIRMS: THE MEDIATING EFFECT OF FIRM SIZE. Gusau Journal of Accounting and Finance, 1(2), 20.
Palvia, A., Vähämaa, E., & Vähämaa, S. (2015). Are female CEOs and chairwomen more conservative and risk averse? Evidence from the banking industry during the financial crisis. Journal of Business Ethics, 131(3), 577–594.
Powell, G. N. (2018). Women and men in management. Sage Publications.
Prior, D., Surroca, J., & Tribó, J. A. (2008). Are socially responsible managers really ethical? Exploring the relationship between earnings management and corporate social responsibility. Corporate Governance: An International Review, 16(3), 160–177.
Qureshi, M. A., Kirkerud, S., Theresa, K., & Ahsan, T. (2020). The impact of sustainability (environmental, social, and governance) disclosure and board diversity on firm value: The moderating role of industry sensitivity. Business Strategy and the Environment, 29(3), 1199–1214.
Rosener, J. B. (2003). Women on corporate boards make good business sense. The Statistical Discovery Software SAS, 29(5), 7–11.
Rowley, T., & Berman, S. (2000). A brand new brand of corporate social performance. Business & Society, 39(4), 397–418.
Salehi, M., Bayaz, M. L. D., Mohammadi, S., Adibian, M. S., & Fahimifard, S. H. (2020). Auditors’ response to readability of financial statement notes. Asian Review of Accounting.
Schneper, W. D., & Guillén, M. F. (2004). Stakeholder rights and corporate governance: A cross-national study of hostile takeovers. Administrative Science Quarterly, 49(2), 263–295.
Sczesny, S., Nater, C., & Eagly, A. H. (2018). Agency and communion: Their implications for gender stereotypes and gender identities. In Agency and communion in social psychology (pp. 103–116). Routledge.
Setó‐Pamies, D. (2015). The relationship between women directors and corporate social responsibility. Corporate Social Responsibility and Environmental Management, 22(6), 334–345.
Suto, M., & Takehara, H. (2020). Corporate social responsibility intensity, management earnings forecast accuracy, and investor trust: Evidence from Japan. Corporate Social Responsibility and Environmental Management, 27(6), 3047–3059.
How to Cite
Diharjo, E., & wijaya, R. (2022, November 23). The The Gender Power in Managerial Entrepreneurship and Corporate Social Responsibility Relationships. Journal of Economics, Business, and Government Challenges, 5(2), 9-18.