The impact of corporate environmental disclosure practices and board attributes on sustainability: Empirical evidence from Asia and Europe

Almaqtari, Faozi A.; Elsheikh, Tamer; Abdelkhair, Farah; Mazrou, Yasser S. A.

doi:10.1016/j.heliyon.2023.e18453

Cited by 13 publications

(8 citation statements)

References 91 publications

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“…The finding suggests that board size can have difficulties in making decisions and reaching agreement on social and environmental matters. The findings disagree with [ 14 ], who reported that board size positively influence environmental disclosure. While many board members may have more diverse viewpoints and specializations, there may be challenges in coordinating and making decisions efficiently, which can slow down the growth of ESG investment.…”

Section: Resultscontrasting

confidence: 99%

“…Effective corporate governance relies on board meetings, facilitating decision-making, oversight, and long-term planning [ 14 ]. This shows that board meetings are critical for influencing a business' ESG investment strategy.…”

Section: Resultsmentioning

confidence: 99%

“…[ 19 ] found that larger board sizes are more likely to pressure management to increase transparency and align their actions with stakeholders. Having more board members improves a firm's ESG disclosure, which helps safeguard the firm's legitimacy [ 14 ]. From the agency theory perspective, a large board size promotes more excellent supervision [ 23 ].…”

Section: Literature Reviewmentioning

confidence: 99%

“…A company's long-term success requires good corporate governance practices, including effective allocation of funds and retaining and expanding capital. Board attributes have been recognized as influencing environmental and social performance [ 14 ]. According to Ref.…”

Section: Introductionmentioning

confidence: 99%

“…In contrast to the numerous studies on corporate governance and ESG performance, corporate governance and ESG investment have yet to receive much attention [ 14 , [18] , [19] , [20] , [21] ]. investigated the relationship between corporate governance and ESG performance.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Addressing environment, social and governance (ESG) investment in China: Does board composition and financing decision matter?

Zhu,

Aryee,

Agyemang

et al. 2024

Heliyon

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Section: Resultscontrasting

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Addressing environment, social and governance (ESG) investment in China: Does board composition and financing decision matter?

Zhu,

Aryee,

Agyemang

et al. 2024

Heliyon

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Corporate governance and corporate carbon disclosures: The moderating role of earnings management

Khuong,

Tai,

Thao

et al. 2024

Corp Soc Responsibility Env

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This research aims to explore the relationship between corporate governance (CG) and carbon disclosure (CD) and the moderating role of earnings management (EM) in this relationship. The model was built based on legitimacy theory, upper echelons theory, and agency theory. We employed a two‐step generalized method of moments (GMM) regression and conducted robust tests to reaffirm the results using panel data from 134 listed companies in the Vietnamese stock market from 2015 to 2022. Our findings indicate that larger board sizes, boards with more independent members or the presence of a CEO who concurrently serves as the chairman of the board can potentially decrease the likelihood of CD, while companies with a higher proportion of female board members or regular board meetings may tend to publish more carbon information. Furthermore, EM can moderate the relationship between CG and CD, and this variable exhibits high reliability in the model. This research adds to the vast body of existing knowledge about the effectiveness of CG by investigating how different dimensions of CG affect corporate CDs in Vietnam, especially, to the best of the authors' knowledge, this is the first research attempting to provide the empirical result of the moderating role of EM in the relationship between CG and corporate CDs.

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Real Earnings Management and ESG Performance in China: The Mediating Role of Corporate Innovations

Abdelbaky,

Liu,

Mingyang

et al. 2024

Int. J Fin Econ

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This study addresses whether the positive consequences of corporate innovation can mitigate the negative repercussions of earning management practices on corporate sustainability. Specifically, it investigates the impact of real earning management (REM) practices on corporate environmental, social and governance (ESG) performance. Likewise, it explores the mediating role of corporate innovation inputs and outputs in this relationship. The study uses a sample of the A‐share listed firms in the Chinese stock market from 2011 to 2021. We measure REM activities as a comprehensive index of corporate abnormal cash flows, abnormal production costs and abnormal discretionary expenses. The Chinese firms' ESG performance is based on Huazheng's ESG rating. Corporate innovation is categorised into innovation input (i.e., R&D expenditure) and innovation output (i.e., patent applications). The study finds that REM practices inversely affect corporate ESG performance and its various pillars. Likewise, firms that engage in higher REM practices are less likely to allocate resources to innovation (i.e., lower R&D expenditure) and have a low innovation output (i.e., fewer patent applications). Nevertheless, firms with higher innovation input and/or higher innovation output exhibit higher ESG performance. Finally, the corporate innovation input and output mediate the relationship between REM practices and ESG performance, suggesting that the positive influence of innovation on ESG performance helps to mitigate the negative consequences of earnings management practices. These results underscore the significance of ethical financial practices and innovation‐driven strategies in enhancing corporate ESG performance.

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The impact of corporate environmental disclosure practices and board attributes on sustainability: Empirical evidence from Asia and Europe

Cited by 13 publications

References 91 publications

Addressing environment, social and governance (ESG) investment in China: Does board composition and financing decision matter?

Addressing environment, social and governance (ESG) investment in China: Does board composition and financing decision matter?

Corporate governance and corporate carbon disclosures: The moderating role of earnings management

Real Earnings Management and ESG Performance in China: The Mediating Role of Corporate Innovations

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