Our days are characterized by two intertwined phenomena, digital technologies and sustainability concerns, which have significantly changed our lives. The growing attention of stakeholders on sustainability has resulted in a greater demand for transparency about environmental, social, and governance (ESG) issues, but, although the significance of ESG disclosure is widely acknowledged by businesses, the extent of ESG disclosure varies considerably between firms. This study, using agency theory as the theoretical basis, aims to examine the effect of various characteristics of boards of directors, such as gender diversity, independence, size, average age, frequency of meetings, tenure, and membership in high-tech industries, on the level of ESG disclosure. The empirical analysis is conducted using an OLS regression model on a cross-sectional sample of 863 firms. The findings show that board characteristics such as gender diversity, independence, and size, as well as membership in the high-tech sector, positively impact the level of ESG disclosure. Surprisingly, board members' average age positively influences ESG disclosure level, whereas board tenure has a negative influence. This study offers substantial implications for policymakers, regulators, and organizations committed to promoting sustainability and social responsibility.

Boards of Directors and High-Tech Sectors Affect ESG Disclosure Quality: An Empirical Analysis of Global Firms

Marrone, Arcangelo
;
Pontrelli, Vincenzo;
2023-01-01

Abstract

Our days are characterized by two intertwined phenomena, digital technologies and sustainability concerns, which have significantly changed our lives. The growing attention of stakeholders on sustainability has resulted in a greater demand for transparency about environmental, social, and governance (ESG) issues, but, although the significance of ESG disclosure is widely acknowledged by businesses, the extent of ESG disclosure varies considerably between firms. This study, using agency theory as the theoretical basis, aims to examine the effect of various characteristics of boards of directors, such as gender diversity, independence, size, average age, frequency of meetings, tenure, and membership in high-tech industries, on the level of ESG disclosure. The empirical analysis is conducted using an OLS regression model on a cross-sectional sample of 863 firms. The findings show that board characteristics such as gender diversity, independence, and size, as well as membership in the high-tech sector, positively impact the level of ESG disclosure. Surprisingly, board members' average age positively influences ESG disclosure level, whereas board tenure has a negative influence. This study offers substantial implications for policymakers, regulators, and organizations committed to promoting sustainability and social responsibility.
2023
Agency theory, board of directors, digital technologies, ESG disclosure, high-tech industry, sustainability
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.12572/22211
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