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Board Independence and Sustainability Disclosure Practices in Indian Companies


Affiliations
1 Assistant Professor in Commerce, Directorate of Distance Education, Vidyasagar University, India
2 Assistant Professor, Department of Commerce, Vidyasagar University, India
3 Professor, Department of Commerce, Vidyasagar University, India
     

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The study attempts to explore the effect of board independence, as an important corporate governance parameter, on the sustainability disclosures practices of 38 listed Indian companies during the period of 2013-17. Sustainability performance is measured with the help of content analysis considering Global Reporting Initiative (GRI) indicators in three major parameters, such as, social, economic and environmental. Using panel data regression analysis, the study finds a significant positive relationship between board independence and the economic parameter of sustainability disclosure. Finally, based on the findings, the study recommends the Indian corporate establishments to ensure independent board of directors for better sustainability performance. As a part of future research directions, the study thinks it is important to identify the factors that actually impact the other two measures of sustainability performance of Indian companies.

Keywords

Corporate Governance, Board Independence, Sustainability Performance, Global Reporting Initiative, Panel Data Analysis.
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  • Board Independence and Sustainability Disclosure Practices in Indian Companies

Abstract Views: 354  |  PDF Views: 1

Authors

Ritu Pareek
Assistant Professor in Commerce, Directorate of Distance Education, Vidyasagar University, India
Krishna Dayal Pandey
Assistant Professor in Commerce, Directorate of Distance Education, Vidyasagar University, India
Tarak Nath Sahu
Assistant Professor, Department of Commerce, Vidyasagar University, India
Arindam Gupta
Professor, Department of Commerce, Vidyasagar University, India

Abstract


The study attempts to explore the effect of board independence, as an important corporate governance parameter, on the sustainability disclosures practices of 38 listed Indian companies during the period of 2013-17. Sustainability performance is measured with the help of content analysis considering Global Reporting Initiative (GRI) indicators in three major parameters, such as, social, economic and environmental. Using panel data regression analysis, the study finds a significant positive relationship between board independence and the economic parameter of sustainability disclosure. Finally, based on the findings, the study recommends the Indian corporate establishments to ensure independent board of directors for better sustainability performance. As a part of future research directions, the study thinks it is important to identify the factors that actually impact the other two measures of sustainability performance of Indian companies.

Keywords


Corporate Governance, Board Independence, Sustainability Performance, Global Reporting Initiative, Panel Data Analysis.

References