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The influence of board composition on environmental, social and governance (ESG) disclosure of Thai listed companies

Author

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  • Muttanachai Suttipun

    (Prince of Songkla University (PSU))

Abstract

The study aimed to (1) investigate the extent, level and pattern of environmental, social and governance (ESG) disclosure in annual report of listed companies in the Stock Exchange of Thailand (SET), (2) to examine the different level of ESG disclosure between groups of interest in terms of board composition and corporate characteristic, and (3) to test the influence of board composition on ESG disclosure of Thai listed companies. Population was all listed companies in the SET. Using annual reports during 2015–2019, content analysis by word counting was used to quantify the extent, level and pattern of ESG disclosure, while board composition was measured by board size, board meeting, female board committee, audit committee, nomination committee, compensation committee, CSR committee, remuneration, CEO compensation, and board compensation. Descriptive analysis, independent sample t test, correlation matrix, and multiple regression were used to analyze the data of this study. The most common ESG disclosure was governance information disclosure following by social and environmental information disclosures. There was an increase of ESG disclosure in annual reporting during 2015–2019 by listed companies in the SET. Moreover, there was a significantly different level of ESG disclosure between groups of audit committee, nomination committee, compensation committee, CSR committee, and firm size. Finally, there was a significantly positive influence of board size, female board, compensation committee, CSR committee, and remuneration on ESG disclosure, while there was a negative influence of audit committee and CEO compensation on ESG disclosure. Finding of possible influence of board composition on ESG disclosure can demonstrate that agency theory can be used to explain the reason of ESG disclosure by Thai listed companies, although the disclosure is still voluntary reporting in Thailand.

Suggested Citation

  • Muttanachai Suttipun, 2021. "The influence of board composition on environmental, social and governance (ESG) disclosure of Thai listed companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(4), pages 391-402, December.
    • Handle: RePEc:pal:ijodag:v:18:y:2021:i:4:d:10.1057_s41310-021-00120-6
    DOI: 10.1057/s41310-021-00120-6
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    Cited by:

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    2. Hamzeh Al Amosh & Saleh F. A. Khatib & Husam Ananzeh, 2024. "Terrorist attacks and environmental social and governance performance: Evidence from cross‐country panel data," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 210-223, January.
    3. Yusuf Babatunde Adeneye & Setareh Fasihi & Ines Kammoun & Khaldoon Albitar, 2024. "Does earnings management constrain ESG performance? The role of corporate governance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 69-92, March.
    4. Shaista Wasiuzzaman & Vasanthan Subramaniam, 2023. "Board gender diversity and environmental, social and governance (ESG) disclosure: Is it different for developed and developing nations?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2145-2165, September.
    5. Paolo Agnese & Francesca Romana Arduino & Massimiliano Cerciello & Simone Taddeo, 2024. "Does board knowledge matter for ESG performance in the European banking industry?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4454-4468, September.
    6. Aluchna, Maria & Roszkowska-Menkes, Maria & Kamiński, Bogumił & Bosek-Rak, Dominika, 2022. "Do institutional investors encourage firm to social disclosure? The stakeholder salience perspective," Journal of Business Research, Elsevier, vol. 142(C), pages 674-682.
    7. Kaouther Chebbi & Mohammed Abdullah Ammer, 2022. "Board Composition and ESG Disclosure in Saudi Arabia: The Moderating Role of Corporate Governance Reforms," Sustainability, MDPI, vol. 14(19), pages 1-25, September.
    8. Marcia Sierdovski & Luiz Alberto Pilatti & Priscila Rubbo, 2022. "Organizational Competencies in the Development of Environmental, Social, and Governance (ESG) Criteria in the Industrial Sector," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    9. Jootae Kim & Sungjin Son & Ick Jin, 2022. "The Effects of Shareholding of the National Pension Fund on Environmental, Social, Governance, and Financial Performance: Evidence from the Korean Manufacturing Industry," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    10. Amit Kumar Singh & Yifang Zhang & Anu, 2023. "Understanding the Evolution of Environment, Social and Governance Research: Novel Implications From Bibliometric and Network Analysis," Evaluation Review, , vol. 47(2), pages 350-386, April.
    11. Jittima Wichianrak & Tehmina Khan & David Teh & Steven Dellaportas, 2023. "Critical Perspectives of NGOs on Voluntary Corporate Environmental Reporting: Thai Public Listed Companies," Sustainability, MDPI, vol. 15(7), pages 1-24, April.
    12. Ibrahim Khalifa Elmghaamez & Jacinta Nwachukwu & Collins G. Ntim, 2024. "ESG disclosure and financial performance of multinational enterprises: The moderating effect of board standing committees," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3593-3638, July.
    13. Yin, Zhichao & Li, Xinqi & Si, Dengkui & Li, Xiaolin, 2023. "China stock market liberalization and company ESG performance: The mediating effect of investor attention," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1396-1414.

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    More about this item

    Keywords

    ESG disclosure; Board composition; Thailand; Listed companies;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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