The impact of corporate governance and share capital structure on corporate social responsibility

Abstract

The relevance of the study was driven by the importance of effective corporate governance for the implementation of corporate social responsibility, which is critical for ensuring business sustainability in the context of globalization and adaptation to European standards. How effectively companies implement management practices determines their ability to respond to social challenges and maintain investor confidence. The purpose of the study was to investigate the key aspects of the impact of corporate governance and shareholder capital structure on corporate social responsibility in the Western Balkans, including Kosovo, given the special challenges of transition economies and international support. The research methodology included a quantitative empirical analysis based on a structured survey among companies in various sectors of the Kosovo economy, which allowed assessing governance practices and corporate social responsibility. In addition, econometric methods were used to identify the impact of board independence and capital concentration on corporate social responsibility. The main results of the study indicated a significant positive impact of board independence on companies’ social investments, in particular, due to increased management transparency