Board composition and textual attributes of non-financial disclosure in the banking sector: Evidence from the Italian setting after directive 2014/95/EU

Beretta, Valentina; Demartini, Chiara; Sotti, Francesco

doi:10.1016/j.jclepro.2022.135561

Cited by 14 publications

(9 citation statements)

References 123 publications

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“…This indicator is determined as the average age of board members. A small positive correlation between ABOD and NFRQ was identified [39]. Thus, there is an indication that ABOD is a positive factor of non-financial reporting quality.…”

Section: The Relationship Between Corporate Governance and Nfrqmentioning

confidence: 86%

“…The summarized evidence supports this hypothesis. Beretta et al [39] found a medium positive correlation between BSZ and NFRQ, while the mean for BSZ is ten. This suggests that the higher the number of directors on a board, the higher is the quality of non-financial reporting.…”

Section: The Relationship Between Corporate Governance and Nfrqmentioning

confidence: 97%

“…It consists of the number of members of the Board of Directors. Several authors [38,39,49] consider that board size is expected to be positively associated with non-financial reporting quality, according to stakeholder theory and incremental information theory. A larger board is expected to be more involved in the preparation of non-financial statements, leading to higher reporting quality.…”

Section: The Relationship Between Corporate Governance and Nfrqmentioning

confidence: 99%

“…Fifth, we provide in Table 4 an example that illustrates our rationale in the mapping process of original variables to specific variables that meet our inclusion criteria. For illustrative purposes, we present the mapping process for Beretta et al [39]. All variables that met the inclusion criteria were analyzed in our study because they are related to company-level factors.…”

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confidence: 99%

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Company-Level Factors of Non-Financial Reporting Quality under a Mandatory Regime: A Systematic Review of Empirical Evidence in the European Union

Radu,

Dragomir,

Hao

2023

Sustainability

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The relationship between non-financial reporting quality (NFRQ) and various company-level factors has been studied extensively, considering the mandatory requirements applicable under the Non-Financial Reporting Directive 2014/95/EU (NFRD) of the European Union. The purpose of this research is to systematize the results of previous published studies on the relationship between NFRQ and company size, financial performance, corporate governance, market performance, and sustainability performance, under a mandatory regime. Our study contributes to the literature by proposing a taxonomy of company-level factors grouped into five categories. We analyze the post-2017 period, focusing on the application of NFRD in the European Union. By applying systematic inclusion and exclusion criteria to a population of 618 articles from Scopus, we obtain a sample of fifteen articles that are subject to an in-depth analysis of correlation matrices. The systematic review resorts to the vote counting methodology to assess the existence and strength of relationships between the NFRQ and company-level factors, based on correlation coefficients. The summarized results indicate that company size, corporate governance, and sustainability performance are positive factors of NFRQ. Regarding corporate governance, we find that board independence, board size, foreign ownership, gender diversity, corporate governance quality, the existence of a sustainability committee, and sustainability-linked remuneration positively influence NFRQ. Our findings emphasize the need to explicitly consider the role of corporate governance and sustainability performance in improving NFRQ while transitioning to improved corporate sustainability reporting under the new Corporate Sustainability Reporting Directive 2022/2464 (CSRD). Our study has implications for academics who seek to engage in empirical research on various factors with positive or negative influence on sustainability reporting, throughout the transition from the NFRD to the CSRD. Policymakers may find our study useful in addressing specific areas of sustainability reporting that have a negative impact on corporate transparency, while practitioners may obtain valuable information on the challenges of transitioning to sustainability reporting and the implementation of mandatory assurance.

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Section: The Relationship Between Corporate Governance and Nfrqmentioning

confidence: 86%

Section: The Relationship Between Corporate Governance and Nfrqmentioning

confidence: 97%

Section: The Relationship Between Corporate Governance and Nfrqmentioning

confidence: 99%

mentioning

confidence: 99%

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Company-Level Factors of Non-Financial Reporting Quality under a Mandatory Regime: A Systematic Review of Empirical Evidence in the European Union

Radu,

Dragomir,

Hao

2023

Sustainability

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“…By not including the board diversity variable, these past studies created a conceptual research gap that this study sought to fill. Some past studies related readability to board characteristics in developed economies including Beretta et al (2023) who studied board composition and textual attributes of nonfinancial disclosure in the banking sector in Italy; Cervantes (2020) studied communication from the board of directors on readability in the Spanish language on sustainability reporting in Spain. By concentrating only on the developed economies, a contextual research gap for this study to fill.…”

Section: Introductionmentioning

confidence: 99%

Sustainability reporting, board diversity, earnings management and financial statements readability: evidence from an emerging economy

Ndegwa

2023

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Purpose This paper aims to investigate the moderating effect of sustainability reporting on the relationship between the independent variables of board diversity, and earnings management and the dependent variable of readability of financial statements. Design/methodology/approach The study panel data regression analysis involved 36 Kenyan-listed companies from 2016 to 2020. Findings Key findings were that increased board diversity was found to significantly improve the readability of financial statements. Discretionary earnings management was found to significantly reduce the readability of financial statements. Sustainability reporting was found to significantly increase the readability of financial statements, and it moderated the relationship between board diversity, earnings management and financial statements readability in Kenya. Research limitations/implications The study sample of 36 non-financial listed in the Nairobi Securities Exchange was very small and was affected by the problem of thin trading; hence, caution should be adopted when interpreting the findings. Practical implications The Capital Markets Authorities (CMA) as a policymaker should enforce sustainability reporting by Kenyan listed firms as there is evidence that the reporting enhances the readability of financial statements. The Institute of Certified Public Accountants as a policymaker should closely monitor the published financial statements of firms for earnings management and punish the perpetrators, as there is empirical evidence that the practice reduces the readability of financial statements. Social implications Sustainability reporting is successful as a moderating variable between readability of financial statements and determinants of readability of financial statements. Originality/value This study contributes to knowledge by studying sustainability reporting as a moderating variable between the independent variables of board diversity and earnings management and the dependent variable of readability of financial statements and measured sustainability reporting using a dummy variable for the period before and after the enactment and release of CMA code of 2016 on corporate governance that required sustainability reporting by Kenyan listed companies.

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CEOs family on the boardroom and environmental, social, and governance disclosure: Exploring from economic crisis during COVID‐19

Ardianto,

Cahyono,

Sulaiman

2024

Bus Strat Dev

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This study examines the relationship between family‐run businesses and the quality of environmental, social, and governance (ESG) disclosure, with a specific focus on the influence of the COVID‐19 pandemic. Drawing on a sample of 559 firm‐year observations from publicly listed companies in ASEAN countries spanning from 2019 to 2022, this study measure ESG disclosure quality using the global reporting initiative guidelines for sustainability reports. Family‐run businesses are identified as those with family members serving on the board of directors. This study finding reveals that family‐run businesses exhibit higher ESG disclosure quality compared to companies without family representation on their boards. Furthermore, results show a significant positive impact of the COVID‐19 pandemic on the relationship between family‐run businesses and their ESG disclosure practices. The implications of this study are significant for various stakeholders, including owners, management, and regulators. This research contributes to the existing literature by offering empirical evidence on the relationship between family‐run businesses and ESG disclosure within the context of ASEAN countries, particularly amidst the COVID‐19 pandemic. By shedding light on the positive association between family involvement and ESG disclosure quality, this study provides valuable insights for practitioners and policymakers seeking to promote sustainable business practices in emerging markets.

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Board composition and textual attributes of non-financial disclosure in the banking sector: Evidence from the Italian setting after directive 2014/95/EU

Cited by 14 publications

References 123 publications

Company-Level Factors of Non-Financial Reporting Quality under a Mandatory Regime: A Systematic Review of Empirical Evidence in the European Union

Company-Level Factors of Non-Financial Reporting Quality under a Mandatory Regime: A Systematic Review of Empirical Evidence in the European Union

Sustainability reporting, board diversity, earnings management and financial statements readability: evidence from an emerging economy

CEOs family on the boardroom and environmental, social, and governance disclosure: Exploring from economic crisis during COVID‐19

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