The impact of board governance effectiveness on carbon disclosure in the banking sector
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Author(s)Marwan MansourLink to ORCID Index: https://orcid.org/0000-0001-7166-0063
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Ala AlbawwatLink to ORCID Index: https://orcid.org/0000-0003-1401-131X
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Ahmad MareiLink to ORCID Index: https://orcid.org/0000-0002-7976-3013
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Murad MujahedLink to ORCID Index: https://orcid.org/0000-0003-2267-6979
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Mohammed NofalLink to ORCID Index: https://orcid.org/0000-0002-7888-8009
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DOIhttp://dx.doi.org/10.21511/bbs.21(1).2026.08
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Article InfoVolume 21 2026, Issue #1, pp. 97-109
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This work is licensed under a
Creative Commons Attribution 4.0 International License
Type of the article: Research Article
Abstract
Climate-related risks have intensified the demand for transparency in the banking sector, particularly with respect to carbon-related information disclosed to stakeholders. In emerging economies, where climate disclosure remains largely voluntary, internal governance mechanisms are expected to play a decisive role in shaping reporting practices. The aim of this study is to examine the relationship between board governance effectiveness and carbon emission disclosure in the ASEAN banking sector. The object of the study is listed commercial banks operating in six ASEAN countries over the period 2014–2023. The analysis is based on panel data and employs fixed-effects and Tobit regression models to account for unobserved heterogeneity and the bounded nature of disclosure scores. The results indicate that board governance effectiveness is positively and statistically associated with carbon emission disclosure. Accordingly, the within R-squared value for the fixed-effects model is 23.5%, while the pseudo R-squared for the Tobit model is 55%, indicating strong explanatory power of both specifications. Economically, a one-point increase in the Board Effectiveness Score corresponds to an increase of 2.630 units in carbon emission disclosure in the fixed-effects model and 4.550 units in the Tobit specification, indicating economically meaningful improvements in disclosure intensity. In addition, bank size, age, profitability, and eco-innovation activity are found to be positively related to disclosure levels. The results remain robust across alternative specifications, including panel quantile regression, panel logit estimation, and two-step system generalized method of moments.
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JEL Classification (Paper profile tab)G34, Q56, G21, M41
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References51
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Tables9
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Figures0
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- Table 1. Study sample from ASEAN countries
- Table 2. Variable definitions
- Table 3. Descriptive statistics
- Table 4. Pairwise correlations
- Table 5. Variance inflation factor
- Table 6. Results of baseline regression models
- Table 7. Quantile regression
- Table 8. Results of panel logit regression – fixed-effects with the Hausman test
- Table 9. Results of dynamic panel GMM estimators
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Inna Makarenko 
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Alex Plastun
doi: http://dx.doi.org/10.21511/afc.01(2).2017.01
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Does board composition have an impact on CSR reporting?
Patrick Velte
doi: http://dx.doi.org/10.21511/ppm.15(2).2017.02
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Corporate governance and financial performance: an empirical analysis of selected multinational firms in Nigeria
Gideon Tayo Akinleye , Odunayo Olarewaju ,
Bamikole Samson Fajuyagbe
doi: http://dx.doi.org/10.21511/ppm.17(1).2019.02
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