Do sustainability reporting conduct and corporate governance attributes relate? Empirical evidence from China

  • Received September 4, 2021;
    Accepted October 11, 2021;
    Published October 21, 2021
  • Author(s)
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  • Article Info
    Volume 19 2021, Issue #4, pp. 110-123
  • Cited by
    9 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

Adopting agency and stakeholders theories, this study aims to investigate the relationship between corporate governance attributes (board size, board independence, female directors, and CEO duality) and sustainability reporting conduct in China. The empirical analysis is based on a sample of 10,330 firm-year observations of Chinese listed companies over the period from 2015 to 2018. Data are supplied by WIND and CSMAR databases, whilst regression analysis is applied to test the hypotheses. Results indicate that board size and board independence were found to be positively associated with the sustainability reporting conduct, while female directors and CEO duality both do not have a significant effect on sustainability reporting conduct in the Chinese institutional settings. This paper advances on arguments of the agency and stakeholders theories with these findings. The larger and more independent board facilitates better monitoring of the managers, what leads to decision-making based on a more appreciation of stakeholders’ perspectives. The study is premised on the presence/absence of sustainability reporting, and it does not take into consideration the quality aspect, which can result in erroneous interpretation. The results should not be generalized as the sample was based on China’s companies for 2015–2018. This study has policy implications for managers and policymakers alike concerning designing board composition conducive to sustainability reporting conduct.

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    • Table 1. Prior studies on the effect of sustainability reporting conduct and corporate governance attributes*
    • Table 2. Sample selection procedure
    • Table 3. Description of the variables
    • Table 4. Descriptive statistics
    • Table 5. Correlations matrix
    • Table 6. T-test results on type of property rights holder
    • Table 7. T-test results on sustainability reporting conduct
    • Table 8. Multiple regression results
    • Conceptualization
      Oleh Pasko, Kateryna Tuzhyk
    • Investigation
      Oleh Pasko, Li Zhang, Kateryna Tuzhyk, Nelia Proskurina, Viktoriia Gryn
    • Methodology
      Oleh Pasko, Nelia Proskurina
    • Project administration
      Oleh Pasko, Nelia Proskurina
    • Supervision
      Oleh Pasko
    • Visualization
      Oleh Pasko, Li Zhang, Kateryna Tuzhyk, Viktoriia Gryn
    • Writing – original draft
      Oleh Pasko
    • Writing – review & editing
      Oleh Pasko
    • Data curation
      Li Zhang
    • Formal Analysis
      Li Zhang, Kateryna Tuzhyk
    • Validation
      Kateryna Tuzhyk, Nelia Proskurina, Viktoriia Gryn