How do Independent Directors View Carbon Information Disclosure? Evidence From China

Khan, Haroon ur Rashid; Khidmat, Waqas Bin; Awan, Sadia; Al-Hares, Osama M.; Saleem, Kashif

doi:10.3389/fenvs.2022.853590

Cited by 4 publications

(11 citation statements)

References 87 publications

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“…We explain the inclusion of risk committee gender diversity in this study through upper echelon theory. In addition, we also link upper echelon theory with the notion that the presence of independent directors on risk committees improves risk disclosure (Bryan and Mason, 2020; Khan et al. , 2022).…”

Section: Discussionmentioning

confidence: 99%

“…In addition, this theory has also been linked to other determinants of risk disclosure. For instance, recently Khan et al. (2022) linked upper echelon theory with the independence of top management teams.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…However, the inclusion of upper echelon theory has been relatively limited in the literature regarding risk disclosure (Al-maghzom et al. , 2016; Bryan and Mason, 2020; Khan et al. , 2022).…”

Section: Introductionmentioning

confidence: 99%

“…In their review of agency theory, Fama and Jensen (1983) state that governance mechanisms reduce agency conflicts and promote transparency, which in turn enhance disclosure practices. Another theoretical perspective that links governance mechanisms with disclosure practices is upper echelon theory (Bryan and Mason, 2020;Khan et al, 2022). Upper echelon theory states that different attributes of top management have an impact on organizational outcomes, such as disclosure.…”

Section: Introductionmentioning

confidence: 99%

“…Upper echelon theory states that different attributes of top management have an impact on organizational outcomes, such as disclosure. However, the inclusion of upper echelon theory has been relatively limited in the literature regarding risk disclosure (Al-maghzom et al, 2016;Bryan and Mason, 2020;Khan et al, 2022). In addition to theoretical support, the notion that governance mechanisms, such as the characteristics of the board and its subcommittees, improve risk disclosure has also received sufficient support from empirical literature (Ntim et al, 2013;Bufarwa et al, 2020;Grassa et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

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Risk committee characteristics and risk disclosure in banks: evidence from an emerging economy

Hasan

Sufi

Hussainey

2023

JAAR

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PurposeThis study aims to investigate the impact of risk committee characteristics on the risk disclosure of banking institutions in an emerging economy, Pakistan.Design/methodology/approachThe data are collected through a manual content analysis of 21 banks regulated by the State Bank of Pakistan over the period 2011–2020. The study utilizes the generalized least square (GLS) regression model as the method of analysis.FindingsThe study finds that risk committee size is positively associated with risk disclosure, which is in line with agency theory. However, risk committee independence and risk committee gender diversity are negatively associated with risk disclosure. This contradicts the theoretical perspective and is explained by the weak regulatory framework of Pakistan.Research limitations/implicationsThis study was carried out in a single research setting, which limits the generalizability of its findings to other developed and emerging economies.Practical implicationsThe results provide valuable insights for regulators by identifying the attributes that require regulatory focus to strengthen risk committees and enhance risk disclosure practices within the banking sector of Pakistan. The findings highlight the effectiveness of the risk committee size, call for fully independent risk committees and encourage greater representation of women in these committees.Originality/valueThis study contributes to the corporate governance literature by empirically examining the risk committee characteristics and their impact on the risk disclosure of banks in an emerging economy. Moreover, this study contributes to theory by utilizing upper echelon theory in addition to agency theory as the motivation for the study.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Risk committee characteristics and risk disclosure in banks: evidence from an emerging economy

Hasan

Sufi

Hussainey

2023

JAAR

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The mediating role of green investment in political connection and carbon information disclosure: Empirical evidence in emerging stock market

Maharani,

Agustia,

Qomariyah

2023

Cogent Business & Management

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Does female representation on corporate boards boost the strengthening of internal control in socially responsible firms?

Pasko

Yang

Ткаченко

et al. 2022

Investment Management and Financial Innovations

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This study examines the relationship between corporate social responsibility and the effectiveness of internal control, while simultaneously examining board gender diversity to check whether female directors contribute to corporate transparency or not. The sample of the study comprises 15,231 firm-year observations of companies listed on the Shanghai and Shenzhen stock exchanges from 2013 to 2018. The raw data for variable calculation come from authoritative and reputable sources, such as China Stock Market and Accounting Research (CSMAR), DIB Internal Control database, and RKS CSR score. The empirical study shows that socially high-performing firms possess a more effective internal control mechanism. However, the paper failed to find a positive association of gender diversity on the board with internal control effectiveness, and failed to attest reinforcing effect of female directors on internal control in socially responsible firms. This study suggests that in China’s institutional environment, female directors are unlikely to contribute to increased corporate transparency. This study is useful for both regulators and company management to establish a master plan and tactics for board composition to improve corporate transparency, taking into account the effect of the investigated phenomena within the jurisdiction under study. AcknowledgmentThis paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “EMBRACING EU CORPORATE SOCIAL RESPONSIBILITY: CHALLENGES AND OPPORTUNITIES OF BUSINESS-SOCIETY BONDS TRANSFORMATION IN UKRAINE” 101094100 — EECORE — ERASMUS-JMO-2022-HEI-TCH-RSCH-UA-IBA / ERASMUS-JMO-2022-HEI-TCHRSCH https://eecore.snau.edu.ua/

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How do Independent Directors View Carbon Information Disclosure? Evidence From China

Cited by 4 publications

References 87 publications

Risk committee characteristics and risk disclosure in banks: evidence from an emerging economy

Risk committee characteristics and risk disclosure in banks: evidence from an emerging economy

The mediating role of green investment in political connection and carbon information disclosure: Empirical evidence in emerging stock market

Does female representation on corporate boards boost the strengthening of internal control in socially responsible firms?

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