Board Composition, Sustainability Reporting, and the Moderating Role of a Contextual Issue: Evidence From an Emerging Country
Year: 2025
Type: article
Abstract: ABSTRACT This study examines the impact of board composition (BC) on sustainability reporting (SR) in financial firms listed on the Dhaka Stock Exchange (DSE), with a focus on the moderating role of non‐performing loans (NPLs). Using 421 firm‐year observations from 49 firms (2016–2024) and an ordinary least squares (OLS) regression model, the results show that boards with more independent, female, and foreign directors are associated with higher SR disclosures. Foreign directors positively influence both environmental and social disclosures, while independent and female directors are significantly linked to social disclosures. The effect of gender diversity is stronger when boards include at least three female directors, especially when one is also independent. However, higher levels of NPLs weaken the positive impact of foreign directorship on SR. Grounded in agency, resource dependence, and critical mass theories, the study offers insights for scholars, regulators, and policymakers on the role of board diversity in promoting sustainability in the financial sector.
DOI: 10.1002/csr.70258
Authors: Sumon Kumar Das, Prome Akter
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $4,100
OpenAlex ID: W4415781452