M.N.F. Nuskiya, Athula Ekanayake, Eshani Beddewela and Ali Meftah Gerged
This study explores the levels of and trends in corporate environmental disclosure (CED) among a sample of Sri Lankan listed companies from 2015 to 2019. Furthermore, this article…
Abstract
Purpose
This study explores the levels of and trends in corporate environmental disclosure (CED) among a sample of Sri Lankan listed companies from 2015 to 2019. Furthermore, this article examines the firm-level determinants of CED, including corporate governance (CG) mechanisms, in Sri Lanka from a multi-theoretical perspective.
Design/methodology/approach
Using a sample of 205 firm-year observations, this paper distinctively applies a panel quantile regression (PQR) model to examine the determinants of CED in Sri Lanka. This method was supported by estimating a two-step generalized method of moment (GMM) model to tackle any possible existence of endogeneity concerns.
Findings
The authors’ findings indicate an increasing trend in CED practice among the sampled companies (i.e. 41 firms, the only adopters of the GRI framework) in Sri Lanka from 2015 to 2019. However, it is still considered at an early stage compared with other developed counterparts. Furthermore, this study suggests that board size, board independence, board meetings, industry type, profitability and firm size are positively associated with CED level. In contrast, and consistent with our expectation, CEO duality is negatively attributed to the disclosed amount of environmental information in the Sri Lankan context.
Research limitations/implications
The authors’ empirical evidence reiterates the crucial need to propagate and promote further substantive CG reforms, mandating CED in Sri Lanka.
Originality/value
The authors’ findings provide much-needed insights for indigenous companies, operating across similar emerging economies, to understand how CED can be incorporated into their reporting process based on the GRI framework in order to enhance their firm value, reduce legitimacy gaps and mitigate other operational risks.
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Juma Bananuka (RIP), Pendo Shukrani Kasoga and Zainabu Tumwebaze
The purpose of this chapter is to investigate the relationship between corporate governance and greenhouse gas (GHG) disclosures using evidence from the United States.
Abstract
Purpose
The purpose of this chapter is to investigate the relationship between corporate governance and greenhouse gas (GHG) disclosures using evidence from the United States.
Design/Methodology/Approach
The study is based on a sample of 168 firms listed on the New York Stock Exchange (NYSE) in the United States. Panel data are used covering a period from 2017 to 2020 involving 672 observations.
Findings
The results indicate that board size has a positive and significant effect on GHG disclosures while the effect of ownership concentration and insider ownership is negative and significant. The proportion of non-executive directors is not significant. In terms of control variables, firm size and financial slack have a positive effect on GHG disclosures.
Originality/Value
The study results add evidence to the already existing literature on the relationship between corporate governance and GHG disclosures using evidence from the United States.
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Md. Abdur Rouf, Md. Nur-E-Alam Siddique and Md. Akhtaruddin
The study aims to identify, summarize and synthesize the theories used in corporate financial reporting (CFR) and propose a conceptual framework based on those theories.
Abstract
Purpose
The study aims to identify, summarize and synthesize the theories used in corporate financial reporting (CFR) and propose a conceptual framework based on those theories.
Design/methodology/approach
The study applied the systematic literature review approach to achieve the study objectives. So, the researchers systematically collected the relevant documents from the Scopus database with the help of an advanced search string containing keywords to the CFR theories. Preferred reporting items for systematic reviews and meta-analyses technique was used for the relevant document selection process. Finally, 67 documents were extracted and analyzed spanning from the year of 2017 to 2023.
Findings
The major findings of this study indicate a predominance of legitimacy, agency and stakeholder theories in CFR studies. Whereas, this study reveals that neo-institutional, signaling, resource dependency, political economics and impression management theories have been less focused on by scholars in the CFR studies. Those theories need to be reemphasized in this field in future research.
Originality/value
The study’s contributions are significant for academics, policymakers and different parties, as it enhance the understanding of CFR theoretical frameworks and suggest directions for future research to broaden the theoretical landscape. The study maps the motivations of applying a certain theory which will help the researchers to select a specific theory for the underlying context of CFR.
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Babajide Oyewo, Venancio Tauringana and Udechukwu Ojiako
This study aims to investigate the corporate governance (CG) determinants of sustainable manufacturing practice using zero-defect manufacturing (ZDM) from the stakeholder theory…
Abstract
Purpose
This study aims to investigate the corporate governance (CG) determinants of sustainable manufacturing practice using zero-defect manufacturing (ZDM) from the stakeholder theory and legitimacy theory perspectives.
Design/methodology/approach
Using a panel research design, the study analyses empirical data from Global 500 companies covering a 15-year period.
Findings
The results show that Board Independence, Meeting Attendance by Board Members, Board Gender Diversity and Board Skills on Sustainable Manufacturing are positively associated with ZDM Practice, while Chief Executive Officer (CEO) Duality of Power has a negative impact. In the millennium development goals period, the foremost drivers of ZDM Practice are Board Independence, Board Gender Diversity and Board Skills on Sustainable Manufacturing, while this shifted to Board Independence and Board Gender Diversity in the sustainable development goals period.
Originality/value
The study provides empirical evidence that organisations seeking to improve sustainable manufacturing practice may consider strengthening their CG structures to demonstrate responsible manufacturing in line with stakeholders’ expectations and to preserve corporate legitimacy. The results are robust to alternative proxies, potential endogeneity concerns and sample selection bias.
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Md. Abdur Rouf and Md. Nur-E-Alam Siddique
This paper attempts to review the corporate voluntary disclosure (CVD) from the theoretical perspective as well as propose a conceptual framework.
Abstract
Purpose
This paper attempts to review the corporate voluntary disclosure (CVD) from the theoretical perspective as well as propose a conceptual framework.
Design/methodology/approach
The researchers use structural literature review technique. The sample literature consisting of 55 articles was extracted from the Scopus database over the period of 2017–2021.
Findings
The literature observes that the legitimacy, agency and stakeholder theories are most applied in CVD related studies than the other theories. It is also revealed that researchers need to concentrate more studies on those theories of CVD that have been applied in a limited study such as neo-institutional, signaling, resource dependence, political economy and impression management theories.
Practical implications
The findings can help the understanding of parties such as practitioners', regulators and potential investors of the theories in CVD from a combined and comprehensive view.
Social implications
The results of the study offer new insights into the potential impact of organizational level and country level theories in CVD from different perspectives of developed and developing countries.
Originality/value
This study delivers an inclusive literature review of the current study approach on the theories of CVD and highlights some stimulating guidelines for future study.
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Mohammed Mehadi Masud Mazumder and Dewan Mahboob Hossain
Cybersecurity disclosure (CSD) provides users with valuable information and significant insights about a firm's susceptibility to cyber risk and its management. It is argued that…
Abstract
Purpose
Cybersecurity disclosure (CSD) provides users with valuable information and significant insights about a firm's susceptibility to cyber risk and its management. It is argued that the board of directors, with its oversight role, should be vigilant in managing cyber risk and disclosures. This study aims to measure the extent of CSD of the banking companies and examines the association between the characteristics of board composition (i.e. board size, board independence and gender diversity) and CSD.
Design/methodology/approach
This study adopted automated content analysis to find out the extent of CSD in the listed commercial banks of an emerging country, Bangladesh, where CSD is voluntary. Further, multiple linear regression is applied to determine the relationship between board composition and CSD.
Findings
The findings reveal an increasing trend of CSD over the sample period (2014–2020). The study confirms a significant positive relationship between board independence and CSD. The study also demonstrates that the higher presence of female directors on the board is associated with higher CSD. However, no consistently significant relationship is found between board size and CSD.
Research limitations
The study is based on listed banking companies only. Hence, the results can not be generalised to companies in other sectors. Also, it is important to acknowledge that we focused on the quantity (not the quality) of CSD contained in annual reports.
Practical implications
The study provides an overall understanding of current trends of CSD in the Banking sector of a developing country. Regulators may use our findings to understand the current level of CSD and assess the need for issuing guidance in this regard. The association between board composition and CSD has implications both for banks when selecting board members and policymakers when establishing requirements concerning board composition under corporate governance guidelines.
Originality/value
This is one of the very few studies in the context of an emerging economy where CSD is voluntary. The paper contributes to a narrow stream of research investigating CSD and its association with board composition. Notably, it contributes to understanding how board composition is associated with CSD in the banking industry, which is highly exposed to cyber risk.
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Ahmad Yuosef Alodat, Zalailah Salleh and Hafiza Aishah Hashim
This paper aims to examine the impact of corporate governance (CG) on sustainability disclosure (SD) from the perspectives of resource dependence, agency and stakeholder theories…
Abstract
Purpose
This paper aims to examine the impact of corporate governance (CG) on sustainability disclosure (SD) from the perspectives of resource dependence, agency and stakeholder theories in the context of Jordan.
Design/methodology/approach
The analyses were based on 405 observations from non-financial firms listed on the Amman Stock Exchange, spanning the period of 2014–2018. The CG that influences SD was examined using panel data regression models.
Findings
The results of the current study show a positive and significant relationship between the extent of SG and the audit committee and board of directors’ effectiveness. In terms of ownership structure, both institutional and foreign ownerships yielded an insignificant relationship with the extent of SDs.
Practical implications
The analyses have implications for practitioners, policymakers, top management and corporate executives. Firms are encouraged to restructure their board of directors to enhance the effectiveness of the board to better monitor and support better SD.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine the determinants of SD in Jordan firms. This paper adopted a newly developed global reporting initiative-based reporting index that identifies companies with good sustainability practices. This adds value to the existing sustainability literature.
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Huu Cuong Nguyen and Hien Khanh Duong
The purpose of this study is to assess the extent of Sustainable Development Goals (SDGs) disclosures among Vietnamese listed firms and identify key influencing factors.
Abstract
Purpose
The purpose of this study is to assess the extent of Sustainable Development Goals (SDGs) disclosures among Vietnamese listed firms and identify key influencing factors.
Design/methodology/approach
The authors analyse SDG-related disclosures of the top 100 listed firms by market capitalisation on the Hanoi and Ho Chi Minh stock exchanges as of December 31, 2023, using an established reporting methodology. Data were sourced from annual, corporate governance, ESG, financial and sustainability reports. A regression model was used to examine factors influencing SDG disclosure.
Findings
SDG disclosure among Vietnamese firms is relatively low. Corporate governance, firm size, government ownership, industry and Global Reporting Initiative (GRI) usage positively influence disclosure levels, while auditing firm type and firm age show a negative association. Financial firms tend to use sustainable development reports and GRI indicators more frequently.
Practical implications
Practically, strengthening governance frameworks and promoting GRI adoption can improve the quality and extent of sustainability reporting among Vietnamese firms. Socially, enhanced SDG disclosure supports improved corporate practices that align with the United Nations SDGs, fostering a more sustainable and transparent economy in Vietnam.
Originality/value
To the best of the authors’ knowledge, this is the first study examining SDG disclosure and influencing factors in Vietnamese listed (2021–2023), using the GRI (2016) standard. This study contributes to transparency in Vietnam’s financial markets and sustainability practices, offering insights for preparers and policymakers.
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Kishore Kumar, Ranjita Kumari, Archana Poonia and Rakesh Kumar
This study aims to evaluate the nature and extent of sustainability disclosure practices of publicly listed companies in India. Further, it investigates the impact of potential…
Abstract
Purpose
This study aims to evaluate the nature and extent of sustainability disclosure practices of publicly listed companies in India. Further, it investigates the impact of potential determinants on the sustainability disclosure of companies.
Design/methodology/approach
The study analyzes data of 75 top listed nonbanking companies operating in India included in NIFTY100 Index for the years 2014-2015 to 2018-2019. In the present study, environment, social and governance disclosure dimensions were considered to evaluate the sustainability reporting performance of companies using content analysis. Panel data analysis was conducted to investigate the impact of various factors on the extent of sustainability information disclosure.
Findings
Results indicate that environmentally polluting industries disclose significantly higher sustainability information than non-polluting industries in India. The empirical findings suggest that determinants such as company size, age, free cash flow capacity, government ownership and global reporting initiative (GRI) usage positively related to the extent of corporate sustainability disclosure. Contrary to the expectations, financial leverage and profitability were found to be negatively related to the sustainability disclosure of companies in India.
Practical implications
This study provides empirical evidence for regulators, practitioners and corporate strategists to assess the progress in the sustainability reporting landscape in India. The finding implies that large and established companies can reduce legitimacy costs through higher sustainability information disclosure. Interestingly, this premise did not hold in the case of high leveraged and profitable companies. Overall findings can also help policymakers to incorporate necessary reforms to improve sustainability reporting in India.
Originality/value
This study is one of the first studies to investigate the nature, extent and potential determinants of corporate sustainability disclosure in India. The paper adds to the existing literature on sustainability reporting by providing empirical evidence on the relationship between sustainability reporting and potential determinants such as government ownership, size, leverage, profitability, age, free cash flow capacity, industry and GRI usage.
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Abdulhakim M. Masli, Musa Mangena, Ali Meftah Gerged and Donald Harradine
This study distinctively explores the firm-level and national-level determinants of audit committee effectiveness (ACE) in the Libyan banking sector (LBS).
Abstract
Purpose
This study distinctively explores the firm-level and national-level determinants of audit committee effectiveness (ACE) in the Libyan banking sector (LBS).
Design/methodology/approach
A mixed-methods approach has been employed to enhance the quality of the collected data and reduce the risk of bias. Five groups of actors in the Libyan banking sector were surveyed, including board members, AC members, executive managers, internal auditors and external auditors, further to interviewing a representative sample of these groups. In total, 218 survey responses were gathered, and 20 semi-structured interviews were conducted.
Findings
The study results show that AC authority, financial expertise and diligence are positively and significantly attributed to ACE, although AC independence and resources are not significantly related to ACE. The authors find that the legal and regulatory environment, government intervention, and the accounting and auditing environment are perceived as important and associated with ACE regarding national-level factors. These findings are strongly supported by semi-structured interviews and suggest that both firm-level and national-level factors are essential in understanding ACE in Libya's banking sector.
Research limitations/implications
The study’s evidence reiterates the vital need for more concentrated work to integrate governance, legislative and regulatory reforms to ensure the effectiveness of ACs as a key corporate governance (CG) mechanism in developing economies.
Originality/value
This study extends the literature relating measures of AC inputs and outputs by examining the perception of stakeholders to understand both the firm-level and national-level factors that affect ACE in a single institutional setting. Additionally, this work adds to the limited number of recent studies examining the role of ACs in the banking sector in developing economies.