ESG Disclosure – Next steps and further readings

The course offers a range of actionable insights and benefits tailored to various stakeholders. Here’s how different groups could benefit:

Corporate Executives and Board Members

Benefits: Enhance corporate governance and improve reputation.
Actionable Insights: By understanding the positive impact of board diversity, especially gender diversity, and board diligence on ESG disclosure, executives and board members can make informed decisions to restructure their boards. This may involve recruiting board members from diverse backgrounds or increasing the frequency of board meetings to focus more on sustainability issues.

Policy Makers and Regulators

Benefits: Develop more effective regulations that foster transparency.
Actionable Insights: Policymakers can use the findings to draft regulations that encourage or mandate diverse and active boards, aiming to enhance ESG disclosure standards in the energy sector. This can help ensure that companies are more accountable to their environmental and social responsibilities.

Investors and Financial Analysts

Benefits: Make better investment decisions based on ESG performance.
Actionable Insights: Investors can look at the composition and practices of a company’s board as indicators of its commitment to ESG principles. Knowing that boards with higher diversity and diligence levels are linked to better ESG outcomes, investors might prioritize companies with such governance features in their portfolios.

Environmental, Social, and Governance (ESG) Consultants

Benefits: Provide more effective consulting services to client firms.
Actionable Insights: Consultants can advise client firms to adopt board practices that enhance ESG disclosure, such as increasing board diversity or implementing more rigorous board oversight mechanisms. This can help firms not only comply with regulations but also improve their market and social reputation.

Non-Governmental Organizations (NGOs)

Benefits: Advocate more effectively for sustainable practices.
Actionable Insights: NGOs can leverage the study’s findings in their advocacy work, pushing for policy changes or corporate practices that prioritize high levels of transparency and board accountability in environmental and social issues.

Corporate Governance Advocates

Benefits: Promote best practices in corporate governance.
Actionable Insights: This group can use the research to educate companies and the general public about the benefits of diverse and diligent boards, potentially leading to broader adoption of these practices across industries.

Industry Associations

Benefits: Support member companies in achieving higher standards of governance and sustainability.
Actionable Insights: Associations can develop training programs and best practice guidelines based on the study’s findings. These programs can teach member companies how to structure their boards and governance practices to enhance ESG disclosure.

 

Further Readings

Aabo, T. and Giorici, I.C. (2022), “Do female CEOs matter for ESG scores?”, Global Finance Journal,
Vol. 56, p. 100722.

Aburaya, R. (2012), “The relationship between corporate governance and environmental disclosure: UK
evidence”, unpublished Doctoral dissertation, Durham University, UK.

Ahmed, A. and Atif, M. (2021), “Board gender composition and debt financing”, International Journal of
Finance and Economics, Vol. 26 No. 2, pp. 3075-3092.

Allegrini, M. and Greco, G. (2011), “Corporate boards, audit committees and voluntary disclosure:
evidence from Italian listed companies”, Journal of Management and Governance, Vol. 17 No. 1,
pp. 1-30.

Alnabsha, A., Abdou, H.A., Ntim, C.G. and Elamer, A.A. (2018), “Corporate boards, ownership
structures and corporate disclosures: evidence from a developing country”, Journal of Applied
Accounting Research, Vol. 19 No. 1, pp. 12-36.

Alshbili, I. and Elamer, A.A. (2020), “The influence of institutional context on corporate social
responsibility disclosure: a case of a developing country”, Journal of Sustainable Finance and
Investment, Vol. 10 No. 3, pp. 269-293, doi: 10.1080/20430795.2019.1677440.

Alzead, R.S. (2017), “The determinants and economic consequences of risk disclosure: evidence from
Saudi Arabia”, Unpublished Doctoral dissertation, University of Portsmouth, UK.

Ananzeh, H., Alshurafat, H. and Hussainey, K. (2022), “Do firm characteristics and ownership structure
affect corporate philanthropic contributions in Jordan?”, Journal of Financial Reporting and
Accounting, Vol. 20 No. 5, pp. 789-808, doi: 10.1108/JFRA-08-2020-0249.

Arayssi, M., Jizi, M. and Tabaja, H.H. (2020), “The impact of board composition on the level of ESG
disclosures in GCC countries”, Sustainability Accounting, Management and Policy Journal,
Vol. 11 No. 1, pp. 137-161.

Baudot, L., Huang, Z. and Wallace, D. (2020), “Stakeholder perceptions of risk in mandatory corporate
responsibility disclosure”, Journal of Business Ethics, Vol. 172 No. 1, pp. 151-174.

Baudot, L., Crawford, L. and Haslam, J. (2021), “A critical appreciation of extractives’ accounting:
Transparency, accountability, the resource curse and other governance issues”, Critical
Perspectives on Accounting, Vol. 74.

Boulouta, I. (2013), “Hidden connections: the link between board gender diversity and corporate social
performance”, Journal of Business Ethics, Vol. 113 No. 2, pp. 185-197.

Chalevas, C.G. (2011), “The effect of the mandatory adoption of corporate governance mechanisms
on executive compensation”, The International Journal of Accounting, Vol. 46 No. 2,
pp. 138-174.

Chatterjee, S. and Hadi, A.S. (2012), Regression Analysis by Example, Wiley-Interscience, Hoboken, NJ.
Chatzivgeri, E., Chew, L., Crawford, L., Gordon, M. and Haslam, J. (2020), “Transparency and
accountability for the global good? The UK’s implementation of EU law requiring country-by-country reporting of payments to governments by extractives”, Critical Perspectives on
Accounting, Vols 67/68 No. 2, pp. 102-134.

Chau, G. and Gray, S.J. (2010), “Family ownership, board independence and voluntary disclosure:
evidence from Hong Kong”, Journal of International Accounting, Auditing and Taxation, Vol. 19
No. 2, pp. 93-109.

Cho, H. and Kim, R. (2021), “Asymmetric effects of voluntary disclosure on stock liquidity: evidence
from 8-K filings”, Accounting and Finance, Vol. 61 No. 1, pp. 803-846.

Croci, E., Hertig, G., Khoja, L. and Lan, L.L. (2023), “Board characteristics and firm resilience: evidence
from disruptive events”, Corporate Governance: An International Review, Vol. 31 No. 3,
pp. 453-469.

Deloitte (2019), “On the board’s agenda: the front line of ESG disclosure: the board’s role”, available at:
www.iasplus.com/en-ca/publications/publications/2019/on-the-board2019s-agenda-the-front-lineof-esg-disclosure-the-board2019s-role
Disli, M., Yilmaz, M.K. and Mohamed, F.F.M. (2022), “Board characteristics and sustainability
performance: empirical evidence from emerging markets”, Sustainability Accounting, Management
and Policy Journal, Vol. 13 No. 4, pp. 929-952, doi: 10.1108/SAMPJ-09-2020-0313.

Eccles, R.G., Ioannou, I. and Serafeim, G. (2012), “The impact of a corporate culture of sustainability on
corporate behaviour and performance”, National Bureau of Economic Research, Vol. 17950 No. 1,
pp. 2835-2857.

Eccles, R.G., Johnstone-Louis, M., Mayer, C. and Stroehle, J.C. (2020), “The board’s role in
sustainability”, Havard Business Review, Vol. 98 No. 5, pp. 48-51.

Elmagrhi, M.H., Ntim, C.G. and Wang, Y. (2016), “Antecedents of voluntary corporate governance
disclosure: a post-2007/08 financial crisis evidence from the influential UK combined code”,
Corporate Governance, Vol. 16 No. 3, pp. 507-538.

Eng, L.L. and Mak, Y.T. (2003), “Corporate governance and voluntary disclosure”, Journal of
Accounting and Public Policy, Vol. 22 No. 4, pp. 325-345.

Erin, O., Adegboye, A. and Bamigboye, O.A. (2022), “Corporate governance and sustainability
reporting quality: evidence from Nigeria”, Sustainability Accounting, Management and Policy
Journal, Vol. 13 No. 3, pp. 680-707, doi: 10.1108/sampj-06-2020-0185.

Fama, E.F. and Jensen, M.C. (1983), “Agency problems and residual claims”, The Journal of Law and
Economics, Vol. 26 No. 2, pp. 327-349.

Filatotchev, I. and Boyd, B.K. (2009), “Taking stock of corporate governance research while looking to
the future”, Corporate Governance: An International Review, Vol. 17 No. 3, pp. 257-265.

Freeman, R.E. (1983), “Strategic management: a stakeholder approach”, Advances in Strategic
Management, Vol. 1 No. 1, pp. 31-60.

Freeman, R.E. and Reed, D.L. (1983), “Stockholders and stakeholders: a new perspective on corporate
governance”, California Management Review, Vol. 25 No. 3, pp. 88-106.

Frye, M.B. and Pham, D.T. (2018), “CEO gender and corporate board structures”, The Quarterly Review
of Economics and Finance, Vol. 69, pp. 110-124.

García Martín, C.J. and Herrero, B. (2020),“Do board characteristics affect environmental performance? A study of EUfirms”, Corporate Social Responsibility and Environmental Management, Vol. 27 No. 1, pp. 74-94.

Garcia, A.S., Mendes-Da-Silva, W. and Orsato, R.J. (2017), “Sensitive industries produce better ESG
performance: evidence from emerging markets”, Journal of Cleaner Production, Vol. 150 No. 2,
pp. 135-147.

Githaiga, P.N. and Kosgei, J.K. (2023), “Board characteristics and sustainability reporting: a case of
listed firms in East Africa”, Corporate Governance: The International Journal of Business in
Society, Vol. 23 No. 1, pp. 3-17, doi: 10.1108/cg-12-2021-0449.

Gonzalez, R. (2015), “Endogeneity and panel data in growth regressions: a Bayesian model averaging
approach”, Journal of Macroeconomics, Vol. 46, pp. 23-39.

Grewal, J., Riedl, E.J. and Serafeim, G. (2019), “Market reaction to mandatory nonfinancial disclosure”,
Management Science, Vol. 65 No. 7, pp. 3061-3084.

Gull, A.A., Atif, M. and Hussain, N. (2023), “Board gender composition and waste management: cross-country evidence”, The British Accounting Review, Vol. 55 No. 1, pp. 101-127.

Guo, J., Islam, M.A., Jain, A. and van Staden, C.J. (2022), “Civil liberties and social and environmental
information transparency: a global investigation of financial institutions”, The British Accounting
Review, Vol. 54 No. 1, pp. 101-118.

Haji, A.A., Coram, P. and Troshani, I. (2023), “Consequences of CSR reporting regulations worldwide: a
review and research agenda”, Accounting, Auditing and Accountability Journal, Vol. 36 No. 1,
pp. 177-208.

Hofstede, G. and Minkov, M. (2010), “Long-versus short-term orientation: new perspectives”, Asia
Pacific Business Review, Vol. 16 No. 4, pp. 493-504.

Hussain, N., Rigoni, U. and Orij, R.P. (2018), “Corporate governance and sustainability performance:
analysis of triple bottom line performance”, Journal of Business Ethics, Vol. 149 No. 2,
pp. 411-432, doi: 10.1007/s10551-016-3099-5.

Husted, B.W. and Sousa-Filho, J. (2019), “Board structure and environmental, social, and governance
disclosure in Latin America”, Journal of Business Research, Vol. 102 No. 2, pp. 220-227.

Ioannou, I. and Serafeim, G. (2012), “What drives corporate social performance? The role of the role of
nation-level institutions”, Journal of International Business Studies, Vol. 43 No. 9, pp. 834-864.

Issa, A. and Zaid, M.A. (2021), “Boardroom gender diversity and corporate environmental performance:
a multi-theoretical perspective in the MENA region”, International Journal of Accounting and
Information Management, Vol. 29 No. 4, pp. 603-630.

Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: managerial behaviour, agency costs and
ownership structure”, Journal of Financial Economics, Vol. 3 No. 4, pp. 305-360.

Jizi, M., Salama, A., Dixon, R. and Stratling, R. (2014), “Corporate governance and corporate social
responsibility disclosure: evidence from the US banking sector”, Journal of Business Ethics,
Vol. 125 No. 4, pp. 601-615.

Khaireddine, H., Salhi, B., Aljabr, J. and Jarboui, A. (2020), “Impact of board characteristics on governance, environmental and ethical disclosure”, Society and Business Review, Vol. 15 No. 3, pp. 273-295.

Larcker, D.F. and Rusticus, T.O. (2010), “On the use of instrumental variables in accounting research”,
Journal of Accounting and Economics, Vol. 49 No. 3, pp. 186-205.

Lessambo, F.I. (2014), “Corporate governance in the BRICS”, The International Corporate Governance
System, Global Financial Markets series, Palgrave Macmillan, London, Vol. 2 No. 3, pp. 130-153,
doi: 10.1057/9781137360014_11.

Li, J., Mangena, M. and Pike, R. (2012), “The effect of audit committee characteristics on intellectual
capital disclosure”, The British Accounting Review, Vol. 44 No. 2, pp. 98-110, doi: 10.1016/j.
bar.2012.03.003.

Liao, L., Luo, L. and Tang, Q. (2015), “Gender diversity, board independence, environmental committee
and greenhouse gas disclosure”, The British Accounting Review, Vol. 47 No. 4, pp. 409-424, doi:
10.1016/j.bar.2014.01.002.

Liao, L., Chen, G. and Zheng, D. (2016), “Corporate social responsibility and financial fraud: evidence
from China”, Accounting and Finance, Vol. 59 No. 5, pp. 3133-3169.

Liao, L., Lin, T. and Zhang, Y. (2018), “Corporate board and corporate social responsibility assurance:
evidence from China”, Journal of Business Ethics, Vol. 150 No. 1, pp. 211-225.

Liu, Y., Wei, Z. and Xie, F. (2014), “Do women directors improve firm performance in China?”, Journal of Corporate Finance, Vol. 28, pp. 169-184.

Liu, P., Zhu, B., Yang, M. and Chu, X. (2022), “ESG and financial performance: a qualitative
comparative analysis in China’s new energy companies”, Journal of Cleaner Production, Vol. 379
No. 1, pp. 134-157.

Louie, J., Ahmed, K. and Ji, X.D. (2019), “Voluntary disclosures practices of family firms in Australia”,
Accounting Research Journal, Vol. 32 No. 2, pp. 123-145.

Lu, Y., Ntim, C.G., Zhang, Q. and Li, P. (2022), “Board of directors’ attributes and corporate outcomes: a
systematic literature review and future research agenda”, International Review of Financial
Analysis, Vol. 84, p. 102424.

Manita, R., Rey, D., Maria, G.B. and Houanti, I. (2017), “Board gender diversity and ESG disclosure:
evidence from the USA”, Journal of Applied Accounting Research, Vol. 19 No. 2, pp. 101-125.

Manita, R., Bruna, M.G., Dang, R. and Houanti, L.H. (2018), “Board gender diversity and ESG disclosure: evidence from the USA”, Journal of Applied Accounting Research, Vol. 19 No. 2, pp. 206-224.

Marquis, C. and Lee, M. (2013), “Who is governing whom? Executives, governance, and the structure of
generosity in large US firms”, Strategic Management Journal, Vol. 34 No. 4, pp. 483-497.

Martínez-Ferrero, J., Guidi, M. and García-Meca, E. (2023), “Sustainability restatements, firm risk and
controversial industries: analysing the signals based on revision type”, Corporate Social
Responsibility and Environmental Management, Vol. 30 No. 1, pp. 473-485.

Md Zaini, S., Samkin, G., Sharma, U. and Davey, H. (2018), “Voluntary disclosure in emerging countries:
a literature review”, Journal of Accounting in Emerging Economies, Vol. 8 No. 1, pp. 29-65.

Michelon, G. and Parbonetti, A. (2012), “The effect of corporate governance on sustainability
disclosure”, Journal of Management and Governance, Vol. 16 No. 3, pp. 477-509.

Montes-Sancho, M.J., Tachizawa, E.M. and Blome, C. (2022), “Financial and market impacts of buyer-supplier sustainability asymmetries: empirical evidence from sensitive industries”, Journal of
Cleaner Production, Vol. 370 No. 4, pp. 133-156.

Nguyen, T.H., Elmagrhi, M.H., Ntim, C.G. and Wu, Y. (2021), “Environmental performance,
sustainability, governance and financial performance: evidence from heavily polluting
industries in China”, Business Strategy and the Environment, Vol. 30 No. 5, pp. 2313-2331.

Nicolo, G., Zampone, G., Sannino, G. and Tiron-Tudor, A. (2023), “Worldwide evidence of corporate
governance influence on ESG disclosure in the utilities sector”, Utilities Policy, Vol. 82 No. 3, pp. 101-129.

Nielsen, S. and Huse, M. (2010), “The contribution of women on boards of directors: going beyond the
surface”, Corporate Governance: An International Review, Vol. 18 No. 2, pp. 136-148.

Ntim, C.G., Opong, K.K., Danbolt, J. and Thomas, D.A. (2012), “Voluntary corporate governance
disclosures by post-apartheid South African corporations”, Journal of Applied Accounting
Research, Vol. 13 No. 2, pp. 122-144.

Nollet, J., Filis, G. and Mitrokostas, E. (2016), “Corporate social responsibility and financial
performance: a non-linear and disaggregated approach”, Economic Modelling, Vol. 52 No. 2,
pp. 400-407, doi: 10.1016/j.econmod.2015.09.019.

Ntim, C.G. and Soobaroyen, T. (2013), “Corporate governance and performance in socially responsible
corporations: new empirical insights from a neo-institutional framework”, Corporate Governance:
An International Review, Vol. 21 No. 5, pp. 468-494.

Ntim, C.G., Lindop, S. and Thomas, D.A. (2013), “Corporate governance and risk reporting in South
Africa: a study of corporate risk disclosures in the pre-and post-2007/2008 global financial crisis
periods”, International Review of Financial Analysis, Vol. 30 No. 2, pp. 363-383.

Ntim, C.G., Soobaroyen, T. and Broad, M.J. (2017), “Governance structures, voluntary disclosures and
public accountability: the case of UK higher education institutions”, Accounting, Auditing and
Accountability Journal, Vol. 30 No. 1, pp. 65-118.

Oliveira, J.D.S., Azevedo, G.D.C. and Silva, M.J.P.C. (2019), “Institutional and economic determinants of
corporate social responsibility disclosure by banks: institutional perspectives”, Meditari
Accountancy Research, Vol. 27 No. 2, pp. 196-227, doi: 10.1108/MEDAR-01-2018-0259.

Orazalin, N.S., Ntim, C.G. and Malagila, J.K. (2023), “Board sustainability committees, climate change
initiatives, carbon performance, and market value”, British Journal of Management.

Pei-Yi Yu, E., Guo, C.Q. and Luu, B.V. (2018), “ESG transparency and firm value”, 45rd Academy of
International Business (UK and Ireland Chapter) Conference, Birmingham, 12-15 Apr 2018.

Peni, E. and Vähämaa, S. (2010), “Female executives and earnings management”, Managerial Finance,
Vol. 36 No. 7, pp. 629-645.

Pfeffer, J. and Salancik, G.R. (1978), “The External Control of Organizations: A Resource Dependence
Perspective”, Harper and Row, New York, NY, Vol. 12 No. 3, pp. 34-49.

Reverte, C. (2009), “Determinants of corporate social responsibility disclosure ratings by Spanish listed
firms”, Journal of Business Ethics, Vol. 88 No. 2, pp. 351-366.

Salem, I.H., Ayadi, S.D. and Hussainey, K. (2019), “Corporate governance and risk disclosure quality:
Tunisian evidence”, Journal of Accounting in Emerging Economies, Vol. 9 No. 4, pp. 123-136, doi:
10.1108/JAEE-01-2019-0005.

Samaha, K., Dahawy, K., Hussainey, K. and Stapleton, P. (2012), “The extent of corporate governance
disclosure and its determinants in a developing market: the case of Egypt”, Advances in
Accounting, Vol. 28 No. 1, pp. 168-178.

Samaha, K., Khlif, H. and Hussainey, K. (2015), “The impact of board and audit committee
characteristics on voluntary disclosure: a meta-analysis”, Journal of International Accounting,
Auditing and Taxation, Vol. 24 No. 2, pp. 13-28.

Sankara, J., Lindberg, D.L. and Razaki, K.A. (2016), “Conflict minerals disclosures: reporting
requirements and implications for auditing”, Current Issues in Auditing, Vol. 10 No. 1, pp. 1-23,
doi: 10.2308/ciia-51312.

Shahbaz, M., Karaman, A.S., Kilic, M. and Uyar, A. (2020), “Board attributes, CSR engagement, and
corporate performance: what is the nexus in the energy sector?”, Energy Policy, Vol. 143 No. 8,
pp. 111-129.

Tao, Q., Wei, K.J., Xiang, X. and Yi, B. (2022), “Board directors’ foreign experience and firm dividend
payouts”, Journal of Corporate Finance, Vol. 75 No. 2, pp. 102-123.

Tran, M., Beddewela, E. and Ntim, C.G. (2021), “Governance and sustainability in southeast Asia”,
Accounting Research Journal, Vol. 34 No. 6, pp. 516-545, doi: 10.1108/arj-05-2019-0095.

Tsang, A., Wang, K.T., Wu, Y. and Lee, J. (2022), “Nonfinancial corporate social responsibility reporting
and firm value: international evidence on the role of financial analysts”, European Accounting
Review, Vol. 29 No. 3, pp. 1-36.

Ullah, I., Fang, H. and Jebran, K. (2019), “Do gender diversity and CEO gender enhance firm’s value?
Evidence from an emerging economy”, Corporate Governance: The International Journal of
Business in Society, Vol. 20 No. 1, pp. 44-66, doi: 10.1108/cg-03-2019-0085.

Wang, M. and Hussainey, K. (2013),“Voluntary forward-looking statements driven by corporate governance and their value relevance”, Journal of Accounting and Public Policy, Vol. 32 No. 3, pp. 26-49.

Wang, M. and Chen, Y. (2017), “Does voluntary corporate social performance attract institutional
investment? Evidence from China”, Corporate Governance: An International Review, Vol. 25
No. 5, pp. 338-357.

Wasiuzzaman, S. and Wan Mohammad, W.M. (2020), “Board gender diversity and transparency of
environmental, social and governance disclosure: evidence from Malaysia”, Managerial and
Decision Economics, Vol. 41 No. 1, pp. 145-156.

Wintoki, M.B., Linck, J.S. and Netter, J.M. (2012), “Endogeneity and the dynamics of internal corporate
governance”, Journal of Financial Economics, Vol. 105 No. 3, pp. 581-606.

Yoo, S. and Managi, S. (2022), “Disclosure or action: evaluating ESG behaviour towards financial
performance”, Finance Research Letters, Vol. 44 No. 3, pp. 102-108.

Zhang, Y., Guo, Y. and Nurdazym, A. (2013),“How do female CEOs affect corporate environmental policies?”, Corporate Social Responsibility and Environmental Management, Vol. 30 No. 1, pp. 459-472.

Zamil, I.A., Ramakrishnan, S., Jamal, N.M., Hatif, M.A. and Khatib, S.F.A. (2021), “Drivers of corporate
voluntary disclosure: a systematic review”, Journal of Financial Reporting and Accounting,
Vol. 21 No. 2, pp. 232-267, doi: 10.1108/JFRA-04-2021-0110.

Zattoni, A., Dedoulis, E., Leventis, S. and Van Ees, H. (2020),“Corporate governance and institutions—a
review and research agenda”, Corporate Governance: An International Review, Vol. 28 No. 6,
pp. 465-487.