Board Diversity and Corporate Sustainability Performance: Do CEO Power and Firm Environmental Sensitivity Matter?

Donkor, Augustine; Trireksani, Terri; Djajadikerta, Hadrian Geri

doi:10.3390/su152316142

Sustainability

2023

DOI: 10.3390/su152316142

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Board Diversity and Corporate Sustainability Performance: Do CEO Power and Firm Environmental Sensitivity Matter?

Augustine Donkor,

Terri Trireksani,

Hadrian Geri Djajadikerta

Abstract: The study assesses whether CEO power and firm environmental sensitivity matter to board diversity (i.e., board cultural (BCD) and board gender (BGD) diversity) and corporate sustainability performance nexus. Australian S&P/ASX300′s firm data for a period of ten years (2011–2020) were used in the study’s analysis. Although board diversity positively influences ESG performance, the presence of powerful CEOs and when firms operate in environmentally sensitive industries weaken the board diversity and sustaina… Show more

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2024

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Cited by 8 publications

References 134 publications

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Corporate governance for sustainable development: A study on mechanism configuration

Yang,

Na,

Dong

2024

Journal of Cleaner Production

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Corporate governance for sustainable development: A study on mechanism configuration

Yang,

Na,

Dong

2024

Journal of Cleaner Production

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The role of firm complexity in the relationship between integrated reporting and earnings management

Donkor,

Trireksani,

Djajadikerta

2024

IJAIM

Self Cite

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Purpose This study aims to evaluate the relationship between integrated reporting and management’s opportunistic behavior (i.e., accrual and real earnings management) and the moderating role of firm complexity. Design/methodology/approach Data of firms at the Johannesburg Stock Exchange were collected and analyzed. The Johannesburg Stock Exchange is currently the primary exchange that mandates the practice of integrated reporting. Regression estimation models and robustness tests were applied to the analysis. Findings This study concludes that integrated reporting quality reduces firms’ accrual and real earnings management practices. It further concludes that the significant negative effect of integrated reporting quality on firms’ earnings management practices is impeded by higher firm complexity. Originality/value This study enhances the literature on the behavioral effect of a combined financial and sustainability disclosure practice on both accrual and real earnings management, specifically targeting South Africa’s listed companies – the primary market currently mandates integrated reporting practice.

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Exploring integrated reporting's influence on international firms' value relevance

Hichri,

Alqatan

2024

IJOES

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Purpose Analyzing the impact of integrated reporting (IR) on international firms' value relevance, considering diverse information such as income, cash flows, risks, uncertainties and various capitals. Design/methodology/approach This paper used a sample of 300 international companies between 2010 and 2019. This paper collected the data from the Thomson Reuters Eikon database. Quantitative methods were used to test the hypotheses. Furthermore, the feasible generalized least squares (FGLS) method was performed to test the hypotheses. Findings The results suggest that IR and value relevance positively correlate, confirming the hypothesis. Moreover, this paper verified these results by conducting robustness tests on the contribution of the framework and guidelines prepared by the International Integrated Reporting Council (IIRC) in 2013. Practical implications This study enables users to evaluate company transparency and the relevance of disclosed nonfinancial information, providing valuable insights for report preparers and investors seeking profitable opportunities. Originality/value The interest in this research was motivated by the authors’ research field, which is innovative, as few studies have been conducted to explain the relationship between IR and value relevance. Similarly, this paper incorporated into their analysis the importance of the framework created by the IIRC in 2013 in preparing and presenting an integrated report. This paper considered the contribution of this framework to the creation of information content. This design has been overlooked in previous studies. However, this paper mobilized the FGLS method, which has been little used in previous studies.

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Board Diversity and Corporate Sustainability Performance: Do CEO Power and Firm Environmental Sensitivity Matter?

Cited by 8 publications

References 134 publications

Corporate governance for sustainable development: A study on mechanism configuration

Corporate governance for sustainable development: A study on mechanism configuration

The role of firm complexity in the relationship between integrated reporting and earnings management

Exploring integrated reporting's influence on international firms' value relevance

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