The Impact of the Board of Directors' Characteristics and Ownership Structure on the Sustainable Development Disclosure in the Banks Listed on the Amman Stock Exchange

Abstract

Purpose: This study tries to comprehend how corporate governance (CG) affects disclosures on economic, social, and environmental sustainability. Theoretical framework: Recent literature has reported that CG has significant impact on disclosures on economic, social, and environmental sustainability. However, there is still much to investigate and learn about CG in sustainability process. Design/methodology/approach: For the time period spanning 2015 to 2021, information about study variables was gathered from thirteen (13) banks listed on the Amman Stock Exchange (ASE) through annual reports and quantitative approach. Findings: Study findings showed that CG components improve sustainability disclosures in general. The study results indicated that, a large board with a female director and a Corporate Social Responsibility Committee (CSRC) is better able to audit and control management choices related to sustainability issues (whether they be economic, environmental, or social) and produces better sustainability disclosure. Research, Practical and Social implications: This study is proposed to help bank managers understand the real impact of corporate governance practices on sustainability, especially economic, environmental and social indicators of sustainability and how to improve and develop them. Originality/value: Through quantitative and qualitative analysis, this study contributes methodologically and empirically to the literature on corporate governance and sustainability reporting in emerging and developing economies.