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Impact of corporate governance factors on ESG disclosure by Russian public companies

Author

Listed:
  • Bela S. Bataeva

    (Financial University under the Government of the Russian Federation, Moscow, Russia)

  • Nikita A. Karpov

    (Gazprombank, Moscow, Russia)

Abstract

In the last decade, ESG reporting has become an integral part of corporate disclosure in Russia. However, there is limited guidance about the determinants of corporate governance that affect ESG disclosure. The paper investigates the interconnection between board of directors’ characteristics and ESG disclosure in Russian public companies. Methodologically, the study relies on the agency and stakeholder theories. Descriptive, correlation and regression analysis were used as research methods. The sample includes the panel data on 34 Russian public companies, whose shares were traded on the Moscow Exchange between 2012 and 2021. We found that board independence, board diversity, and the presence of a sustainability committee had a significant positive effect on ESG disclosure. At the same time, the impact of the board size was predominantly negative. The findings proved that ESG reporting was mostly practiced by the largest (by assets) companies, while the indicators of profitability and risk were insignificant in the context of environmental, social, and corporate governance. The obtained research results can be used by business representatives as well as by legislators and regulators to improve ESG disclosure practices in Russian public companies.

Suggested Citation

  • Bela S. Bataeva & Nikita A. Karpov, 2023. "Impact of corporate governance factors on ESG disclosure by Russian public companies," Upravlenets, Ural State University of Economics, vol. 14(3), pages 30-43, July.
    • Handle: RePEc:url:upravl:v:14:y:2023:i:3:p:30-43
    DOI: 10.29141/2218-5003-2023-14-3-3
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    References listed on IDEAS

    as
    1. Irina N. Tkachenko, 2021. "Rethinking the stakeholder approach to corporate governance amid the coronavirus crisis: From commitment declaration to applied models," Upravlenets, Ural State University of Economics, vol. 12(2), pages 2-16, April.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    More about this item

    Keywords

    corporate governance; board of directors; board independence; board structure; ESG reporting; public companies; Russia;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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