Corporate Governance and Environmental Disclosure: A Comparative Analysis

Aly, Doaa A ORCID: 0000-0002-2037-6879, Hasan, A, Obioru, B and Nakpodia, Franklin (2024) Corporate Governance and Environmental Disclosure: A Comparative Analysis. Corporate Governance. doi:10.1108/CG-01-2024-0063 (In Press)

Text 14368 Aly D. et al. (2024) Corporate Governance and Environmental Disclosure A Comparative Analysis AAM.pdf - Accepted Version Restricted to Repository staff only Available under License Creative Commons Attribution Non-commercial 4.0. Download (624kB)

Abstract

Purpose: This research investigates the influence of corporate governance (CG) on environmental disclosure (ED) practices within UK and US firms, addressing the contemporary challenges confronting firms in both contexts. Design/methodology/approach: Employing the dynamic panel regression framework of system GMM, this study analyses a sample comprising 121 FTSE and 200 S&P firms from 2010 to 2020. Findings: The findings emphasise the dynamic nature of ED practices among UK and US firms, demonstrating their propensity to swiftly adjust to desired levels whenever deviations occur. Besides, the study identifies board independence and the frequency of board meetings as significant determinants of ED for UK firms. In contrast, for US firms, board independence and audit committee independence are found to be significant determinants of ED. Originality: This study contributes to the scarce literature on the impact of board and audit committee characteristics on ED practices in the UK and US contexts. In addition, by employing the system GMM estimation technique, this study provides robust and updated evidence which addresses the weaknesses inherent in previous studies. Research Implications: The research highlights the fundamental role played by CG in shaping how firms in the UK and the US navigate agency problems and respond to diverse stakeholder demands through ED in their annual reports. The study advocates for the promotion of robust governance systems that concurrently serve the purposes of accountability and monitoring to bridge the information expectation gap between firms and stakeholders. The findings reinforce the necessity for regulatory initiatives involving policy formulation and corporate oversight to enhance private sector awareness regarding environmental reporting practices.

Item Type:	Article
Article Type:	Article
Uncontrolled Keywords:	Corporate Governance; Environmental Disclosure; Board Characteristics; Audit Committee; Disclosure Index; GMM Regression
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > HD58 Organizational behavior, change and effectiveness. Corporate culture
Divisions:	Schools and Research Institutes > School of Business, Computing and Social Sciences
Depositing User:	Kamila Niekoraniec
Date Deposited:	25 Sep 2024 14:28
Last Modified:	25 Sep 2024 14:30
URI:	https://eprints.glos.ac.uk/id/eprint/14368

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