Disclosure of sustainability practices has become vital for organizations to secure their image as legitimate corporate citizens in society (Panjaitan, 2017). It might be influenced by the board of directors subject to the performance and resource availability. The prime objective of the paper is to investigate the association between board characteristics and a level of sustainability disclosure with the moderating role of performance gap and resources. Secondary data was obtained from 174 non-finance firms representing 16 sectors of the Colombo Stock Exchange (CSE) over 2016–2020. The study used 13 board characteristics and 7 controlling variables. According to the results of ordered logistic regression, board size and audit committee size have a significant impact on the degree of sustainability disclosures. At the same time, female directors displayed a significant adverse effect on such disclosures. It was found that resource availability significantly impacts the relationship between board characteristics and sustainability reporting. The study contributes to the extant literature by filling an empirical gap in the area by encapsulating a more comprehensive sample, using a broader theoretical perspective and a wide measurement to capture sustainability disclosure. The study findings are predicted to have extensive managerial ramifications in strengthening corporate governance mechanisms to elevate sustainability disclosure

PurposeThis study examines whether managers adopt corporate social responsibility (CSR) disclosures to suppress earnings management practices and whether corporate governance mechanisms could limit such practices.Design/methodology/approachA quantitative approach was followed, in which secondary data from listed firms from 2014 to 2019 were gathered. Descriptive statistics and inferential techniques were performed, which included correlation, ordered logistic regression and 2SLS panel regression analyses.FindingsThe findings indicate that firms use CSR disclosure to conceal managers' opportunistic behaviour via earnings management as an entrenchment strategy and that corporate governance mechanisms could significantly constrain such behaviour.Research limitations/implicationsThis study goes beyond the conventional agency theory by incorporating additional theoretical perspectives from stakeholder and legitimacy theories, resulting in a multi-theoretical perspective in conceptualizing the study.Practical implicationsThe findings are expected to have significant policy implications, especially in limiting the opportunistic use of CSR disclosures and reducing earnings management practices to safeguard stakeholders' interests and ensure the sustainability of business entities.Originality/valueThe levels of CSR and board governance practices are captured using comprehensive indices. Moreover, earnings management was operationalized using both accrual-based and real earnings management proxies. Furthermore, while addressing an empirical dearth noted, the findings provide significant policy implications for limiting managers' opportunistic and unethical use of CSR disclosures with corporate governance mechanisms.