Does the gender of board members influence the choice of sustainability report format of listed firms? Empirical evidence from India

Abstract

PurposeThis study examines the effect of gender board characteristics on the choice of sustainability report format in India. A sustainability report covers the environmental and social impacts of firms. It is presented either as an integrated report with the rest of the financial reporting to stakeholders or a separate document (stand-alone) with the advantage of communicating better information.Design/methodology/approachThe study uses an inclusive sample of 800 firm-year observations between 2010 and 2019. The study applies the binary probit and the instrumental variable probit regressions to analyse the data from the Indian Stock Exchange.FindingsThe authors find that female chief executive officers (CEOs) are more likely to choose stand-alone reports over integrated reporting. The authors also find that female CEOs with a duality role are insignificant in choosing between integrated reporting and stand-alone sustainability reporting. Furthermore, the study shows that gender board diversity (percentage of women over total board size) and females of two or less are insignificant. However, three or more females on the board significantly and positively affect stand-alone sustainability reporting. Similarly, independent female directors are more likely to choose stand-alone reporting over integrated reporting. Policymakers must encourage sensitive environmental firms to employ more female CEOs over male CEOs because female CEOs are more likely to adopt stand-alone sustainability reporting.Originality/valueThe authors’ study adds novelty to research because previous studies have only examined a female CEO and sustainability. However, this study is the first to investigate female CEOs' and female board members' choice of sustainability report format.

Configurational analysis of corporate governance and corporate social responsibility reporting assurance: understanding the role of board and CSR committee

“…Moreover, García-S anchez (2020) found that larger boards increase the quality of MEDAR 32,2 CSRA. However, other studies have found no connection between CSRA and board size (Oware et al, 2022;Miras-Rodriguez and Di Pietra, 2018;Kend, 2015).…”

“…This result suggests that implementing a bundling effect by combining independent directors with other board variables will lead to better CSRA implementation. However, Aladwey et al (2022) and Oware et al (2022) indicate an insignificant relationship between board independence and the adoption of CSRA.…”

Dataset of exceptional women directors and carbon information disclosures of global energy companies

“…Thus, this dataset is helpful for the regulations and legal authorities in encouraging women's participation, especially in high-polluting industries like the energy sector. Additionally, women in higher positions and who have diverse expertise and experience, especially in energy-related companies, tend to improve firms' governance and ethical dimension [15 , 16] especially promoting CID [16] . Even with WD representation with other industry differences, multiple directorships, experiences, background, external connections, and professional expertise can influence their perspectives and viewpoints in enhancing CID, WDs participations in the energy sector remain a problem [17] .…”

“…Even with WD representation with other industry differences, multiple directorships, experiences, background, external connections, and professional expertise can influence their perspectives and viewpoints in enhancing CID, WDs participations in the energy sector remain a problem [17] . Therefore, by using this dataset, it may encourage the regulators and governments to emphasize the policy of WDs' involvement in corporate world as little enforcement and low law abiding especially in emerging economies [15] including in the energy sector. The dataset also may improve the gender diversity and carbon emissions literature as they are scarce and contradictory [18] , [19] , [20] , [21] , [22] .…”