CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

Abstract

AbstractThe study's purpose examines chief executive officer (CEO) characteristics, sustainability reporting format, and environmental disclosure of listed firms in India. Eight hundred firm‐year observations across India's firms applied panel regression with random effect assumptions and general method of moment. The first findings show that reporting format has a positive and statistically significant association with environmental disclosure. The second findings show that CEO age and CEO tenure have an insignificant association, but CEO duality negatively associates with environmental disclosure. The third findings show that CEO characteristics (tenure and duality) × report format is insignificant. However, the CEO age × report format has a positive and statistically significant association with listed firms' environmental disclosure in India. The strategic implication shows that the choice of a stand‐alone sustainability reporting in environmental communication disclosure is a strategic benefit that secures strategic investors and investment in the firm. For the firm to be recognized as a strategic partner in global sustainable development goals, CEOs with longer tenure and aged CEOs engagements are an unsuitable investment, which Indian firms must not pursue. Endogeneity problems across panels are addressed in this study. This study's novelty examines the interactive effect of CEO characteristics and sustainability report format on environmental disclosure in India.