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1 – 10 of 614Rohmini Indah Lestari, Indarto Indarto and Yuli Budiati
Examining the role of women on board (WoB) toward corporate sustainable growth (CSG) through leverage policy (LP). This research also investigates the interaction effect of WoB…
Abstract
Purpose
Examining the role of women on board (WoB) toward corporate sustainable growth (CSG) through leverage policy (LP). This research also investigates the interaction effect of WoB and LP on improving CSG.
Design/methodology/approach
This study uses a moderated mediation model to examine the impact of WoB on CSG, mediated by LP. Data from 48 KEHATI IDX ESG Sector Leaders Index companies observed from 2015 to 2021 were analyzed using the structural equation model partial least square (SEM-PLS) Warp.PLS 8.0. The research applies instrumental variables (IV) to test and control endogeneity due to nonrandom sample selection.
Findings
We found evidence that LP acts as a full mediator between the presence of WoB and CSG. The presence of WoB plays a moderate role by slightly weakening the influence of LP on CSG. Furthermore, we obtained evidence showing that the relationship between WoB and CSG is J-curve-shaped, a nonlinear relationship related to critical mass. Where the WoB ratio is at least 8.35% or higher, it will increase CSG in companies that have implemented the concept of environment social governance (ESG) in Indonesia.
Originality/value
This model uses a moderated mediation model and J-curve analysis; there is an interaction between WoB and LP on different paths of the mediator to CSG. This model examines the role of WoB as a moderator of the effect of LP on CSG. A nonlinear J-curve test was conducted to determine the minimum level of WoB that can influence the increase of CSG.
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Md Mamunur Rashid and Md Rabiul Kabir
This study investigates the effect of corporate governance (CG) characteristics on corporate sustainability performance (CSP) and whether the magnitude of CSR expenditure mediates…
Abstract
Purpose
This study investigates the effect of corporate governance (CG) characteristics on corporate sustainability performance (CSP) and whether the magnitude of CSR expenditure mediates such a relationship in the context of an emerging and developing economy-Bangladesh.
Design/methodology/approach
This study collects data from the annual reports of 30 private commercial banks listed with the Dhaka Stock Exchange for the period starting from 2013 to 2022, giving 300 firm-year observations. To test the hypotheses formulated, this study uses Baron and Kenny’s (1986) four-step model. Data have been analyzed using AMOS 23 to examine the direct and indirect effect of CG on sustainability performance.
Findings
This study finds that several CG variables (board size, board independence, sustainable finance committee) significantly affect several facets of sustainability performance (environmental, social, and financial performance). However, the mediating role of the magnitude of CSR expenditure in the relationship between CG mechanisms and sustainability performance is found to be limited.
Research limitations/implications
The list of CG and ownership structure variables studied is not exhaustive, and the presence of a wide variation in the measurement of sustainability performance makes its measurement subjective to some extent.
Originality/value
This study uses the magnitude of CSR expenditure as a mediator in the relationship between CG and sustainability performance, which is rarely addressed by the extant literature in this field.
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Mohammad Alta’any, Ven Tauringana, Alaa Zalata and Laura Obwona Achiro
This paper aims to document international evidence of the impact of a board-level governance bundle [size, independence, CEO duality, gender diversity and sustainability committee…
Abstract
Purpose
This paper aims to document international evidence of the impact of a board-level governance bundle [size, independence, CEO duality, gender diversity and sustainability committee (SC)] on sustainability reporting (SR) and, separately, on its three dimensions (economic, environmental and social).
Design/methodology/approach
The sample includes 370 listed firms from 50 countries. A GRI standards-based disclosure index was constructed to quantify SR across various reporting media.
Findings
The baseline findings show that SC positively affects SR and its three dimensions. Board size also has a significant and positive impact on SR and two of its dimensions (economic and social). Similarly, board independence and CEO duality have a significant but negative association with SR and the same two dimensions. Finally, board gender diversity has no significant impact on SR and all its three dimensions.
Practical implications
The findings that only SC significantly influences SR, and its three dimensions, have important implications for corporate governance reforms internationally to improve SR in countries where such committees are not yet part of the board of directors’ sub-committees.
Originality/value
Overall, this study contributes to board characteristics–SR literature and holds significant theoretical and practical implications.
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Anup Kumar Saha and Imran Khan
This study aims to examine the impact of board characteristics on climate change disclosures (CCDs) in the context of an emerging economy, with a unique focus on regulatory…
Abstract
Purpose
This study aims to examine the impact of board characteristics on climate change disclosures (CCDs) in the context of an emerging economy, with a unique focus on regulatory influences.
Design/methodology/approach
This study analyzes longitudinal data (2014–2021) from environmentally sensitive firms listed on the Dhaka Stock Exchange, using a disclosure index developed within the Global Reporting Initiative framework. The authors use a neo-institutional theoretical lens to explore regulatory influences on CCD through board characteristics. This study uses hand-collected data from annual reports owing to the absence of an established database.
Findings
The results indicate that a larger board size, the presence of foreign directors and the existence of an audit committee correlate with higher levels of CCD disclosure. Conversely, a higher frequency of board meetings is associated with lower CCD disclosure levels. This study also observed an increase in CCD following the implementation of corporate governance guidelines by the Bangladesh Securities and Exchange Commission, albeit with a relatively low number of firms making these disclosures.
Research limitations/implications
This study contributes to the climate change reporting literature by providing empirical evidence of regulatory influences on CCD through board characteristics in an emerging economy. However, the findings may not be universally applicable, considering the study’s focus on Bangladeshi listed firms.
Practical implications
This study suggests growing pressures for diverse stakeholders, including researchers and regulatory bodies, to integrate climate change disclosure into routine activities. This study offers a valuable framework and insights for various stakeholders.
Social implications
By emphasizing the influence of good governance and sustainability practices, this study contributes to stakeholders’ understanding, aiming to contribute to a better world.
Originality/value
This study stands out by uniquely positioning itself in the climate change reporting literature, shedding light on regulatory influences on CCD through board characteristics in the context of an emerging economy.
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Wai Kee Ho, Nampuna Dolok Gultom, Susela Devi K. Suppiah, Jaspal Singh, Shenba Kanagasabapathy and Hafiza Aishah Hashim
This study aims to examine the association between board characteristics (namely, diligence, independence, gender diversity, size and expertise) and sustainability-related…
Abstract
Purpose
This study aims to examine the association between board characteristics (namely, diligence, independence, gender diversity, size and expertise) and sustainability-related disclosures (SRD) in Malaysia.
Design/methodology/approach
A robust SRD index of 409 items is used to derive SRD scores for 56 Malaysian listed companies from 2018 to 2020, yielding 168 observations. Pooled ordinary least squares is applied to test the research hypotheses and model.
Findings
The authors find that board members in audit committees and female board members show a significant relationship with SRD, casting doubt on the widely held belief that other board characteristics (such as size, diligence, independence and expertise) independently impact SRD. However, the authors find that market influence (firm value) and firm size are associated with SRD.
Practical implications
SRD is at its nascent stage, and companies are cherry-picking on what to report, as evidenced in the SRD scores. Regulators and policymakers must recognize the complex interplay between various factors impacting SRD for the timely issuance of comprehensive rules for firms to comply. The regulators’ drive for more female board representation can be a boost to enhance the sustainability agenda for Malaysian listed companies. The SRD scoring template can be used on post-2020 data to investigate the sustainability maturity of Malaysian listed companies.
Originality/value
The authors evidence that SRD practice is in the early stages of maturity using the comprehensive SRD scoring template. Although the findings contradict prior studies, the authors believe this is driven by the robust SRD measure based on the latest Global Reporting Initiative and Bursa rules.
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Olayinka Adedayo Erin and Barry Ackers
In recent times, stakeholders have called on corporate organizations especially those charged with governance to embrace full disclosure on non-financial issues, especially…
Abstract
Purpose
In recent times, stakeholders have called on corporate organizations especially those charged with governance to embrace full disclosure on non-financial issues, especially sustainability reporting. Based on this premise, this study aims to examine the influence of corporate board and assurance on sustainability reporting practices (SRP) of selected 80 firms from 8 countries in sub-Saharan Africa.
Design/methodology/approach
To measure the corporate board, the authors use both board variables and audit committee variables. Also, the authors adapted the sustainability score model as used by previous authors in the field of sustainability disclosure to measure SRPs. The analysis was done using both ordered logistic regression and probit regression models.
Findings
The results show that the combination of board corporate and assurance has a positive and significant impact on the sustainability reporting practice of selected firms in sub-Saharan Africa.
Practical implications
The study places emphasis on the need for strong collaboration between the corporate board and external assurance in evaluating and enhancing the quality of sustainability disclosure.
Originality/value
The study bridged the gap in the literature in the area of corporate board, assurance and SRP of corporate firms which has received little attention within sub-Saharan Africa.
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Abhishek Kajal and Siddharth Bansal
The purpose of this study is to analyse the impact of corporate attributes like a company’s profitability, size, age, leverage and board size on companies’ sustainability…
Abstract
Purpose
The purpose of this study is to analyse the impact of corporate attributes like a company’s profitability, size, age, leverage and board size on companies’ sustainability reporting as measured through India’s new business responsibility and sustainability reporting (BRSR) framework.
Design/methodology/approach
A random sample of 130 companies was taken from the top 1,000 listed companies on the National Stock Exchange. Sequential mixed methods research approach was used to prepare a sustainability quality index. Then, a hierarchical multiple regression analysis was performed to examine the impact on the quality of reporting by Indian companies.
Findings
Interestingly, the analysis revealed that traditional metrics like age, profitability, board size and leverage did not have significant associations with reporting quality. Rather, the size of a company in terms of market capitalisation was found to have a strong positive impact on sustainability reporting.
Research limitations/implications
This was a cross-sectional study, as time series data for BRSR reporting is not yet available. Also, only five parameters were taken for analysis. Lastly, subjective judgment in content analysis may be involved.
Practical implications
This suggests that only larger companies in India are prioritising sustainability reporting over smaller ones. It affirms the legitimacy and stakeholder theory in the Indian context.
Originality/value
To the best of the authors’ knowledge, this study is one of the first endeavours to assess the efficacy of the new Indian BRSR framework and test its primary objectives. Furthermore, significant implications have been given for managers to catalyse and reinforce the sustainability momentum down the lane across companies of all sizes in India.
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Ahmed A. Elamer and Misaki Kato
This paper aims to delve into the nuanced relationship between corporate governance dynamics, human capital disclosure and their impact on the competitive positioning of Japanese…
Abstract
Purpose
This paper aims to delve into the nuanced relationship between corporate governance dynamics, human capital disclosure and their impact on the competitive positioning of Japanese listed companies. The study primarily examines how these factors influence employee engagement, a critical determinant of overall business competitiveness.
Design/methodology/approach
Panel data for Japanese listed companies for FY 2019 to FY 2021 were analysed using multiple regression analyses with two models.
Findings
The results indicate that the presence of independent and female board members has a positive impact on human capital disclosure. Surprisingly, employee engagement was found to be negatively related with human capital disclosure, signifying a potential trade-off between transparency and engagement.
Originality/value
Amidst the escalating emphasis on non-financial information and corporate social responsibility, this paper unveils a previously underexplored aspect of Japanese corporate competitiveness. Specifically, this study offers a fresh empirical perspective on the relationship between corporate governance, human capital disclosure and employee engagement in Japanese listed companies, a topic with limited academic research and no legal regulations in Japan. The findings have significant implications for companies seeking to enhance their human capital disclosure and employee engagement practices, especially in light of the growing focus on non-financial information and social responsibility.
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Mehmet Ali Koseoglu, Hasan Evrim Arici, Mehmet Bahri Saydam and Victor Oluwafemi Olorunsola
The interconnected challenges of climate change and social inclusivity have placed unprecedented pressure on businesses to adopt responsible practices. While previous research has…
Abstract
Purpose
The interconnected challenges of climate change and social inclusivity have placed unprecedented pressure on businesses to adopt responsible practices. While previous research has explored the individual impacts of environmental, social, and governance (ESG) performance and diversity initiatives, there remains a dearth of comprehensive investigations into how these factors collectively influence carbon emission scores. Drawing on the legitimacy theory, we explore whether ESG and diversity scores predict global companies' carbon emission scores. As concerns about the environmental impact of businesses grow, understanding the relationships between ESG performance, diversity management, and carbon emissions becomes imperative for sustainable corporate practices.
Design/methodology/approach
The primary dataset for this study includes 1,268 worldwide firm-year data for 2021. The sample is subjected to missing data examination as a component of the filtration process. Data preprocessing is performed before machine learning analysis, including verifying missing data. Our research resulted in the final sample, which includes 627 worldwide firm data from 2021. Data regarding all publicly traded companies was obtained from Refinitiv Eikon.
Findings
Our findings showed that corporate carbon emission performance in global corporations is influenced by ESG performance and total diversity score.
Originality/value
Firms involve in ESG as well as diversity practices to be able to achieve sustainable success. Yet, the forecasting of carbon emissions based on ESG scores and diversity scores remains inadequately established due to conflicting findings and enigmas prevalent in the literature.
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Faisal Alshahrani, Baban Eulaiwi, Lien Duong and Grantley Taylor
This study aims to examine the relationship between climate change disclosure performance (CCDP) and audit pricing. The moderating effect of corporate governance characteristics…
Abstract
Purpose
This study aims to examine the relationship between climate change disclosure performance (CCDP) and audit pricing. The moderating effect of corporate governance characteristics on that relationship is also investigated.
Design/methodology/approach
Using a sample of top 300 Australian Securities Exchange listed non-financial firms over the period 2008–2019, this study investigates the association between CCDP and audit fees. The findings are robust to a difference-in-difference test thereby alleviating potential endogeneity concerns.
Findings
CCDP is found to be significantly positively related to external auditor fees.
Research limitations/implications
The findings show some important implications for firm management, regulators, investors and auditors. This study presents empirical evidence that climate change, as a factor of external risk, influences audit fees.
Practical implications
Firms with governance structures characterized by larger more independent boards, larger audit committees and audit committees with a higher level of independence significantly moderate the relationship between CCDP and audit fees.
Social implications
Investors’ demand for firm transparency and disclosure of information regarding the risks of climate change, effects and opportunities has increased significantly over the past decade, as these factors could have a significant effect on valuation and investment decisions.
Originality/value
Importantly, stakeholders need to be aware of the costs of climate change, the quantification of climate change impacts and how firms address climate change in their business risk management processes. This study quantifies the impact of CCDP on auditor risk assessments via audit fees.
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