Board composition and textual attributes of non-financial disclosure in the banking sector: Evidence from the Italian setting after directive 2014/95/EU

Beretta, Valentina; Demartini, Chiara; Sotti, Francesco

doi:10.1016/j.jclepro.2022.135561

Cited by 5 publications

(1 citation statement)

References 123 publications

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“…By not including the board diversity variable, these past studies created a conceptual research gap that this study sought to fill. Some past studies related readability to board characteristics in developed economies including Beretta et al (2023) who studied board composition and textual attributes of nonfinancial disclosure in the banking sector in Italy; Cervantes (2020) studied communication from the board of directors on readability in the Spanish language on sustainability reporting in Spain. By concentrating only on the developed economies, a contextual research gap for this study to fill.…”

Section: Introductionmentioning

confidence: 99%

Sustainability reporting, board diversity, earnings management and financial statements readability: evidence from an emerging economy

Ndegwa

2023

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Purpose This paper aims to investigate the moderating effect of sustainability reporting on the relationship between the independent variables of board diversity, and earnings management and the dependent variable of readability of financial statements. Design/methodology/approach The study panel data regression analysis involved 36 Kenyan-listed companies from 2016 to 2020. Findings Key findings were that increased board diversity was found to significantly improve the readability of financial statements. Discretionary earnings management was found to significantly reduce the readability of financial statements. Sustainability reporting was found to significantly increase the readability of financial statements, and it moderated the relationship between board diversity, earnings management and financial statements readability in Kenya. Research limitations/implications The study sample of 36 non-financial listed in the Nairobi Securities Exchange was very small and was affected by the problem of thin trading; hence, caution should be adopted when interpreting the findings. Practical implications The Capital Markets Authorities (CMA) as a policymaker should enforce sustainability reporting by Kenyan listed firms as there is evidence that the reporting enhances the readability of financial statements. The Institute of Certified Public Accountants as a policymaker should closely monitor the published financial statements of firms for earnings management and punish the perpetrators, as there is empirical evidence that the practice reduces the readability of financial statements. Social implications Sustainability reporting is successful as a moderating variable between readability of financial statements and determinants of readability of financial statements. Originality/value This study contributes to knowledge by studying sustainability reporting as a moderating variable between the independent variables of board diversity and earnings management and the dependent variable of readability of financial statements and measured sustainability reporting using a dummy variable for the period before and after the enactment and release of CMA code of 2016 on corporate governance that required sustainability reporting by Kenyan listed companies.

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Section: Introductionmentioning

confidence: 99%

Sustainability reporting, board diversity, earnings management and financial statements readability: evidence from an emerging economy

Ndegwa

2023

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Do boards care about planetary boundaries? A gender perspective on circular economy disclosures

Enciso‐Alfaro,

García‐Sánchez

2024

Bus Strat Env

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The need to develop environmentally respectful business activities has led academics to propose the circular economy (CE) as a more sustainable production and consumption model than the linear model, where interest groups demand greater disclosure of information that makes it possible to evaluate the business transition towards the CE. Also, the planetary boundaries framework provides thresholds for different natural processes that are affected by business activities, so in this research, we link the CE to planetary boundaries by designing a score, and we analyse the presence of female directors and the role women play in the presentation of CE information that attends to planetary boundaries. We also examine the effect that national cultures characterized by high power distance and masculinity can have on their performance. We use a sample of 832 companies around the world from 2011 to 2020. The results show that women directors promote the presentation of CE information at a global level and disaggregated by CE issues, framed within planetary boundaries—a relation that is reinforced in societies with high power distance.

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Sustainability reporting quality in Malaysia: The intricacy of family controlled and politically connected firms

Elaigwu,

Abdulmalik,

Alghorbany

et al. 2024

Corp Soc Responsibility Env

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The study contributes to the existing literature by examining the relationship between family‐controlled firms (FCFs), politically connected firms (PCFs), and sustainability reporting quality (SRQ) in Malaysia. The study utilizes panel regression techniques to test the hypotheses. The study's findings revealed that FCFs have a significant negative effect on SRQ. On the other hand, PCFs show a positive significant effect on SRQ. Moreover, the study uncovers a significant and positive interacting effect of PCFs in the relationship between FCFs and SRQ. The implication of this is that politically connected family‐controlled firms (PCFCFs) exhibit higher levels of sustainability performance and disclosure quality. The study offers valuable implications for regulators, scholars, and practitioners. Policymakers can use the insights from this paper to develop regulations and guidelines that encourage family‐controlled firms to improve the quality of their sustainability disclosures. Furthermore, the study provides a foundation for further research in this domain to confirm the result of the present investigation.

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Board composition and textual attributes of non-financial disclosure in the banking sector: Evidence from the Italian setting after directive 2014/95/EU

Cited by 5 publications

References 123 publications

Sustainability reporting, board diversity, earnings management and financial statements readability: evidence from an emerging economy

Sustainability reporting, board diversity, earnings management and financial statements readability: evidence from an emerging economy

Do boards care about planetary boundaries? A gender perspective on circular economy disclosures

Sustainability reporting quality in Malaysia: The intricacy of family controlled and politically connected firms

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