TY - JOUR
T1 - Board Composition, Sustainability Reporting, and the Moderating Role of a Contextual Issue
T2 - Evidence From an Emerging Country
AU - Das, Sumon Kumar
AU - Akter, Prome
N1 - Publisher Copyright:
© 2025 The Author(s). Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd.
PY - 2025/11/2
Y1 - 2025/11/2
N2 - 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.
AB - 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.
KW - 512 Business and Management
KW - board composition
KW - corporate governance
KW - emerging economy
KW - financial sector
KW - non-performing loans
KW - sustainability reporting
UR - http://www.scopus.com/inward/record.url?scp=105020758679&partnerID=8YFLogxK
U2 - 10.1002/csr.70258
DO - 10.1002/csr.70258
M3 - Article
AN - SCOPUS:105020758679
SN - 1535-3958
JO - Corporate Social Responsibility and Environmental Management
JF - Corporate Social Responsibility and Environmental Management
ER -