 Sustainability disclosures and corporate boards: a stakeholder approach to decision-makingPriti Yadav and Anshul Jain Journal of Applied Accounting Research, 2023, vol. 24, issue 5, 1027-1047 Abstract: Purpose - The board of directors of an organization can contribute considerably to the transition to a sustainable global economy by accommodating environmental, social and governance (ESG) measures in the directors' business model. Along these lines, the purpose of this research is to understand the nexus between the board's structural attributes and sustainability disclosures in an emerging economy such as India. Design/methodology/approach - The authors investigate this link using the system generalized method of moments (SGMM) panel regression on a sample of firms from the National Stock Exchange (NSE) Nifty 100 Index from 2013 to 2020. This econometric framework controls endogeneity among the variables, which has been a gap in the previous studies. Findings - The authors find that board structural attributes, like board size, gender diversity, chief executive officer (CEO) duality and independence, have little bearing on sustainability disclosures of Indian companies. However, the board of directors, through the board's company's social responsibility (CSR) committee, strives for sustainability practices in Indian organizations. The authors also find that larger companies are more willing to disclose on ESG efforts than smaller ones, but the financial performance of the smaller ones (as proxied by Tobin's Q) does not matter. Research limitations/implications - This study is restricted to a sample of large cap listed companies and specific environment, resulting in the non-generalizability of the findings to different contexts because countries vary in their state of economic development, internal policy, regulations and governance. Practical implications - A mandated CSR committee has helped Indian businesses to publicize their sustainability efforts. Besides the frontrunner in CSR regulations, Indian organizations have paid least attention to the environmental pillar of the ESG framework. Accordingly, the board of directors should put more emphasis on the environmental aspects of their business' sustainability efforts to help achieve sustainable development goals (SDGs) in the medium term and net neutrality in the long term. Originality/value - From the standpoint of an emerging economy like India, which has statutory CSR mandates for firms, this research adds a fresh perspective on the relationship between corporate governance and corporate responsibility by employing stakeholder theory, which is further substantiated by the use of system GMM as a robust methodology. This study also emphasizes the significance of a mandatory CSR committee as a facilitator of sustainability practices and reporting in emerging economies. Keywords: ESG; Corporate governance; Stakeholder theory; ESG disclosure; CSR reporting; GMM; Dynamic panel (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eme:jaarpp:jaar-10-2022-0279 DOI: 10.1108/JAAR-10-2022-0279 Access Statistics for this article Journal of Applied Accounting Research is currently edited by Associate Professor Orthodoxia Kyriacou More articles in Journal of Applied Accounting Research from Emerald Group Publishing Limited |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.