The Impact of Directors’ Foreign Experience on Environmental Information Disclosure: Evidence from Heavily Polluting Chinese Firms

Hussain, Muhammad Jameel; Tian, Gaoliang; Ayaz, Muhammad; Zhang, Xia

doi:10.1111/ajfs.12372

Cited by 11 publications

(19 citation statements)

References 97 publications

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“…Following prior studies, we also control different board, company and CEO‐level variables that may influence the relationship between CEO ability and corporate environmental sustainability disclosure (Hussain, Tian, Ayaz, & Ashraf, 2022; Shahab et al, 2020). Firstly, we control for board‐related variables because prior studies found that a larger board, more independent directors and board meetings positively impact corporate environmental sustainability disclosure (Hussain, Tian, Ayaz, & Zhang, 2022; Nguyen et al, 2021). We control board size, board independence (B‐Ind) and the number of board meetings (N‐meeting).…”

Section: Methodsmentioning

confidence: 99%

“…We measure the corporate environmental sustainability information disclosures based on the method adopted in recent studies (Hussain, Tian, Ayaz, & Zhang, 2022; Nguyen et al, 2021). They divided corporate environmental sustainability information disclosure into environmental financial information (quantitative) and environmental non‐financial information (qualitative).…”

Section: Methodsmentioning

confidence: 99%

“…Firstly, we control for board-related variables because prior studies found that a larger board, more independent directors and board meetings positively impact corporate environmental sustainability disclosure (Hussain, Tian, Ayaz, & Zhang, 2022;Nguyen et al, 2021). We control board size, board independence (B-Ind)…”

Section: Control Variablesmentioning

confidence: 99%

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Chief executive officer ability and corporate environmental sustainability information disclosure

Hussain

Tian

Ashraf

et al. 2022

Business Ethics Env & Resp

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This study explores the impact of CEO ability on corporate environmental sustainability information disclosure. We take samples from Chinese A-share listed companies from 2010 to 2019 and use the ordinary least squares as a baseline regression model to check the relationship between CEO ability and corporate environmental sustainability information disclosure. Our findings are robust to different corporate environmental sustainability information disclosure measures and CEO ability. We found a positive association between CEO ability and corporate environmental sustainability information disclosure; thus, firms with a more able CEO are more likely to disclose more corporate environmental sustainability information. Our results also found a significant negative interaction coefficient between CEO ability and CEO career concerns. As the CEO grows older, his/her ability decreases; therefore, corporate environmental sustainability information disclosure reduces. Furthermore, we document that a female CEO strengthens the relationship between CEO ability and corporate environmental sustainability information disclosure. The study results are important for understanding corporate environmental responsibility development and implementation, particularly in China.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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Chief executive officer ability and corporate environmental sustainability information disclosure

Hussain

Tian

Ashraf

et al. 2022

Business Ethics Env & Resp

Self Cite

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“…It was found that CEOs’ education significantly influenced the environmental management information disclosure of the firm and significantly improved the firm's performance (C. Zhang, Li, Gou, et al, 2022). CEOs’ overseas experience had a significant positive effect on environmental management information disclosure, more significantly in state‐owned heavily polluting firms (Hussain et al, 2022). In Bangladesh's heavily polluting firms, CEO financial background significantly affected CSR performance (Dhar et al, 2022), and in Jordan, CEO duality was positively related to corporate environmental management information disclosure (Gerged, 2021).…”

Section: Literature Analysis and Research Hypothesismentioning

confidence: 99%

Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention

Zhu

2023

Corp Soc Responsibility Env

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In the context of the global economy's green and low‐carbon development, companies are paying increasing attention to environmental management. This study compiles statistics on Chinese listed firms from 2010 to 2020 and examines the influence of CEOs' environmental background on corporate environmental management information disclosure based on imprinting theory. It found that CEOs with environmental backgrounds are more willing to disclose corporate environmental management information, and the level of disclosure is high. By attracting media attention and reducing the company's financing constraints, CEOs with an environmental background can enhance the level of corporate environmental management information disclosure, according to the analysis of the impact mechanism. Further research revealed that CEO environmental background promoted corporate environmental management information disclosure more significantly in state‐owned and heavily polluting enterprises.

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“…The rapid growth of the Chinese economy has been achieved in large part through a large amount of manufacturing and production of goods and services. However, this growth has had a significant negative impact on the environment, particularly in terms of increase in waste gas emissions, wastewater discharge, industrial soot and dust emissions, industrial solid waste, noise and light pollution, energy consumption, energy emissions and environmental damage (Elmagrhi et al ., 2019; Hussain et al ., 2022a, b, c; Hussain et al ., 2022a, b, c; Shahab et al ., 2018). China, for example, is the world's largest energy consumer, accounting for more than 23% of global energy consumption.…”

Section: Introductionmentioning

confidence: 99%

Influence of independent female directors on green commitment

Wang¹,

Qi²,

Nie³

2023

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PurposeWith increasing environmental issue and problems, this study aims to explore how the female directors' foreign experience and corporate green commitment in emerging economics like China from 2008 to 2020.Design/methodology/approachThe authors draw data of all ‘A’ share listed firms listed on Shanghai and Shenzhen stock exchanges from 2008 to 2020 from the renowned Chinese database China Stock Market and Accounting Research (CSMAR). The study's data collection start from 2008, because data about green commitment are not available on CSMAR before 2008 and final year is 2020 because data about green commitment is available at the time of data collection. After dropping observations with missing data, the study's final sample contains 20,255 firm year-observations. Finally, in accordance with prior studies, the authors classified enterprises according to the “China Securities and Regulatory Commission” (2012) to categorize firms.FindingsThe authors find that female directors' foreign experience enhances the green commitment in Chinese listed companies. In additional analysis, the authors find this relationship is more pronounced when one or more foreign directors. The study's findings are robustness to different economic techniques and alternative measure of dependent variables and endogeneity concerns. Overall, the study's findings show that female directors with foreign experience transmit environmental and sustainable knowledge and practices to Chinese companies.Originality/valueFirst, the authors believe that this is the first study to analyze the impact of the overseas experience of female directors on corporate green commitment. Most previous studies have examined the influence of the presence of female directors or different attributes such as age, education and independence of female directors on board decisions, in order to protect the interests of multiple stakeholders (Elmagrhi et al., 2019; He and Jiang, 2019; McGuinness et al., 2017). This study finds that, in addition to other different attributes, the foreign experience of female directors also has a significant role in promoting corporate green commitment. By pushing corporate green commitment, these women directors leverage their experience in advanced economies abroad to add to the Chinese government's environmental and sustainability goal of achieving net zero carbon by 2060. As such, this is one of the first studies to highlight the experiences of female directors in transferring environmental and sustainability practices to Chinese companies. Second, the authors add to the literature by integrating two important board perspectives, such as gender diversity and the impact of foreign experience on corporate green commitment. Previous research has explored the presence or absence of female directors on board or foreign experience. However, this study adds to the literature by introducing important attributes of the influence of female directors' foreign experience on decision making. Third, this study provides evidence on the impact of foreign independent directors on the board. The authors document foreign independent directors enhance the relationship between female directors' foreign experience and corporate green commitment. The study's findings complement previous research by Liang and Renneboog (2017), showing that female directors with foreign experience transfer advanced levels of environmental and sustainable practice knowledge to Chinese companies.

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The Impact of Directors’ Foreign Experience on Environmental Information Disclosure: Evidence from Heavily Polluting Chinese Firms

Cited by 11 publications

References 97 publications

Chief executive officer ability and corporate environmental sustainability information disclosure

Chief executive officer ability and corporate environmental sustainability information disclosure

Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention

Influence of independent female directors on green commitment

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