Corporate governance and environmental disclosure: a comparative analysis

Aly, Doaa A ORCID: 0000-0002-2037-6879, Hasan, Arshad, Obioru, Bolanle and Nakpodia, Franklin (2024) Corporate governance and environmental disclosure: a comparative analysis. Corporate Governance: The International Journal of Business in Society, 24 (8). pp. 210-236. doi:10.1108/cg-01-2024-0063

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Abstract

Purpose This study aims to investigate 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 Using the dynamic panel regression framework of system generalised method of moment (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, this 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. Research limitations/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. This 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. Originality/value 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 using the system GMM estimation technique, this study provides robust and updated evidence that addresses the weaknesses inherent in previous studies.

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 H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > HD60 Social responsibility in business H Social Sciences > HF Commerce > HF5001 Business > HF5387 Business Ethics
Divisions:	Schools and Research Institutes > School of Business, Computing and Social Sciences
Depositing User:	Kamila Niekoraniec
Date Deposited:	05 Dec 2024 15:35
Last Modified:	05 Dec 2024 15:35
URI:	https://eprints.glos.ac.uk/id/eprint/14600

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