The impact of board composition on the level of ESG disclosures in GCC countries

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dc.contributor.author Arayssi, Mahmoud
dc.contributor.author Jizi, Mohammad
dc.contributor.author Tabaja, Hala Hussein
dc.date.accessioned 2021-02-03T12:37:24Z
dc.date.available 2021-02-03T12:37:24Z
dc.date.copyright 2020 en_US
dc.date.issued 2021-02-03
dc.identifier.issn 2040-8021 en_US
dc.identifier.uri http://hdl.handle.net/10725/12457
dc.description.abstract Purpose This paper aims to investigate the impact of board composition on environmental, social and governance (ESG) reporting in the Gulf countries. Despite the vast literature on the significance of ESG disclosure on firms’ performance, trust and reputation, there are relatively few studies on the influence of board structure on ESG disclosure in the Gulf Cooperation Council (GCC) countries. Gulf countries are witnessing a fast growing capital markets and having serious efforts to attract foreign investments to divert their economies from the oil and gas reliance. This could be facilitated by illustrating firms’ good citizenship and communicating the fulfillment of their social obligation. Design/methodology/approach The study examines publically listed companies between 2008 and 2017. Thomson Reuter’s database is used to collect the ESG disclosure scores and governance information. The authors apply multiple panel data regressions and sensitivity testing to ensure the robustness of the results. Findings Examining publically listed companies for a 10-year period shows that higher board independence and female board participation facilitate the transmission of a firm’s positive image by improving social responsibility. Independent boards of directors and participation among women serve as catalysts to strike an effective balance between firms’ financial targets and social responsibilities. In contrast, boards chaired by chief executive officers are less supportive in executing a social agenda and consequently reporting their ESG activities. Practical implications The results suggest that firms that appoint a sustainability and/or governance committee tend to engage in more impactful social and environmental activities and communicate their societal engagements more effectively. Social implications The paper recommends that policymakers, executives and shareholders in the GCC countries support board participation among women, independent directors and formation of sustainability committees to facilitate engaging in effectual social activities. Originality/value Empirical evidence regarding the relationship between board composition and ESG disclosure in the Gulf countries is limited. Prior literature mainly provides results on developed countries in which the governance system is mature and well structured. This study provides useful evidence regarding the Gulf countries that lack privatization and where corporate boards tend to be dominated by families and governments. en_US
dc.language.iso en en_US
dc.title The impact of board composition on the level of ESG disclosures in GCC countries en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 199629330 en_US
dc.author.idnumber 200201121 en_US
dc.author.department Finance And Accounting en_US
dc.description.embargo N/A en_US
dc.relation.journal Sustainability Accounting, Management and Policy Journal en_US
dc.journal.volume 11 en_US
dc.journal.issue 1 en_US
dc.article.pages 137-161 en_US
dc.keywords Board composition en_US
dc.keywords Environmental social governance disclosure en_US
dc.keywords Gulf cooperation countries en_US
dc.keywords Environmental social and governance disclosure en_US
dc.keywords G32 en_US
dc.keywords J16 en_US
dc.identifier.doi https://doi.org/10.1108/SAMPJ-05-2018-0136 en_US
dc.identifier.ctation Arayssi, M., Jizi, M. and Tabaja, H.H. (2020), "The impact of board composition on the level of ESG disclosures in GCC countries", Sustainability Accounting, Management and Policy Journal, 11 (1), 137-161. en_US
dc.author.email mahmoud.araissi@lau.edu.lb en_US
dc.author.email mohammad.jizi@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url https://www.emerald.com/insight/content/doi/10.1108/SAMPJ-05-2018-0136/full/html en_US
dc.orcid.id https://orcid.org/0000-0002-1816-8835 en_US
dc.orcid.id https://orcid.org/0000-0002-1911-8215 en_US

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