Corporate Environmental Information Disclosure in India: Role of Board Characteristics

Abstract

This research paper intends to observe the influence of board characteristics, namely, Board Size (BS), Board Independence (BI), Board meetings (BM), CEO duality (CD), firm-size (FS), Tobin Q, and ROAon environmental information disclosure. Environmental information has been measured through their availability in annual reports of particular companies. We have used panel data of 60 environmentally most polluted companies listed on the Bombay Stock Exchange from 2017 to 2021. The data has been analyzed using a regression model and tested through the feasible generalized least square (FGLS) regression technique. Our study indicates that Board Size (BS), CEO duality (CO), Board Meetings (BM), Tobin Q & ROAhave a substantial influence on environmental information disclosure, whereas board independence and size of firms do not influence environmental information disclosure. Agency theory discusses that board size (BS) has a negative association with environmental information, but it opposes the empirical work of Ezhilarasi & Kabra (2017) & Pareek et.al. (2019).Further, Al-Janadi et al. (2012) argue that CEO Duality (CD) and environmental information disclosure have significantly positively linked. The study recommends that environmental information disclosure is obligatory, specifically for environmentally sensitive companies in their periodic reports. In addition, governmental establishments should offer a transparent and standard guideline on disclosing environmental information to ensure responsible business.