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Board characteristics and ESG disclosure in energy industry: evidence from emerging economies

Yusuf Nuhu (Salford Business School, University of Salford, Manchester, UK and Department of Accounting and Finance, Abubakar Tafawa Balewa University, Bauchi, Nigeria)
Ashraful Alam (Salford Business School, University of Salford, Manchester, UK)

Journal of Financial Reporting and Accounting

ISSN: 1985-2517

Article publication date: 28 July 2023

Issue publication date: 21 February 2024

1554

Abstract

Purpose

This paper aims to investigate the impact of board characteristics on environmental, social and governance (ESG) disclosure in the energy industry of emerging economies.

Design/methodology/approach

The authors adopt the Bloomberg ESG rating to measure the extent of ESG disclosure using a sample of 1,260 observations from BRICS emerging economies. Multiple regression techniques were used to estimate the effect of board characteristics on ESG disclosures of a sample Brazil, Russia, India, China, and South Africa (BRICS) listed companies between 2010 and 2019.

Findings

The authors find a relatively low (at 37%) level of ESG disclosure among the sampled firms and a relatively high degree of variability. The authors also find that board gender diversity, board composition and board diligence are positively related to the level of ESG disclosure while the study documents no relationship between board size and ESG disclosure.

Practical implications

The study’s findings highlight the importance of corporate board attributes in influencing strategic decisions such as the level of ESG disclosure and the findings may be useful to regulators, policymakers and investors in making informed investment decisions.

Originality/value

To the best of the authors’ knowledge, this study is one of the first attempts at examining the impact of board characteristics on ESG disclosure in the energy industry in emerging economies. The paper provides new evidence on the relationship between board characteristics (BC) and ESG disclosure in the energy industry of emerging BRICS countries within a panel multi-country research setting.

Keywords

Acknowledgements

Funding: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.

Citation

Nuhu, Y. and Alam, A. (2024), "Board characteristics and ESG disclosure in energy industry: evidence from emerging economies", Journal of Financial Reporting and Accounting, Vol. 22 No. 1, pp. 7-28. https://doi.org/10.1108/JFRA-02-2023-0107

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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