Do Diversity in Board Drive Environmental, Social and Governance Disclosure? ASEAN Banking Sector Evidence
Fransisca Y Bukarim 2Wahyu Widarjo
Faculty of Economics and Business, Sebelas Maret University
https://doi.org/10.47191/jefms/v7-i8-02ABSTRACT:
The study examines the impact of board of director on Environmental, Social and Governance disclosure and each pillar (E,S,G) practice of ASEAN bank companies. The board diversity variabels such as age, tenure and gender were used. The sample consists of 58 companies listed in stock exchanges of each country for 2022 and panel data regressions is used for analysis. The study finds that the board diversity variabels age improve ESG disclosure and each pillar E S G. Variabel tenure dan gender tidak berpengaruh terhadap semua variabel dependen. This study is important due to following reasons, firstly ESG issues are important and global, the lack of ESG disclosure makes the increasing factors even more important. Secondly this study uses a more advanced Bloomberg ESG scores as well as individual environment, social and governance scores to measure the ESG disclosure and each pillar. Finally the research results support the Upper Echelons Theory that strategies to focus organizational efforts on specific areas such as ESG disclosure deployment originate and are reinforced by the organization's board.
KEYWORDS:
Environmental, Social and Governance (ESG), Board of Director, Age, Gender, Upper Echelons Theory
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