Board characteristics and ESG disclosure in energy industry: Evidence from emerging economies

Nuhu, Yusuf; Alam, Ashraful

Abstract

Purpose (limit 100 words) This paper investigates the impact of board characteristics on ESG disclosure in the energy industry of emerging economies. Design/methodology/approach (limit 100 words) The authors adopt the Bloomberg ESG rating to measure the extent of ESG disclosure using a sample of 1260 observations from BRICS emerging economies. Multiple regression techniques were used to estimate the effect of board characteristics on ESG disclosures of a sample BRICS listed companies between 2010 and 2019. Findings (limit 100 words) The authors find a relatively low (at 37 percent) level of ESG disclosure among the sampled firms and a relatively high degree of variability. The authors also find that board gender diversity, board composition and board diligence are positively related to the level of ESG disclosure while the study document no relationship between board size and ESG disclosure. Practical implications (limit 100 words) The study findings highlight the importance of corporate board attributes in influencing strategic decisions like the level of ESG disclosure and the findings may be useful to regulators, policymakers and investors in making informed investment decisions. Originality/value (limit 100 words) This study is one of the first attempts at examining the impact of board characteristics on ESG disclosure in the energy industry in emerging economies. The paper provides new evidence on the relationship between BC and ESG disclosure in the energy industry of emerging BRICS countries within a panel multi-country research setting.

Citation

Nuhu, Y., & Alam, A. (2023). Board characteristics and ESG disclosure in energy industry: Evidence from emerging economies. Journal of Financial Reporting and Accounting, https://doi.org/10.1108/jfra-02-2023-0107

• Journal Article Type: Article
• Acceptance Date: Jun 16, 2023
• Online Publication Date: Jul 28, 2023
• Publication Date: Jul 28, 2023
• Deposit Date: Jul 11, 2023
• Publicly Available Date: Jul 28, 2023
• Journal: Journal of Financial Reporting and Accounting
• Print ISSN: 1985-2517
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1108/jfra-02-2023-0107
• Keywords: Board composition, BRICS, board gender diversity, multi-theoretical perspective, Board Size, ESG disclosure, Board characteristics, energy industry, emerging economies
• Publisher URL: https://www.emeraldgrouppublishing.com/journal/jfra