THE IMPACT OF BOARD OF DIRECTORS’ CHARACTERISTICS ON THE SUSTAINABILITY OF COMPANIES LISTED ON THE PALESTINE AND AMMAN STOCK EXCHANGES DURING THE PERIOD 2020-2024

Abstract

Abstract

The proposed to examine how the characteristics of board of directors affect the sustainability performance of Palestine Exchange and the Amman Stock Exchange listed firms in the 2020-2024. In particular, it discusses how the independence of the board, gender diversity, education, age, and experience affect the corporate sustainability disclosure, holding other factors constant, including the size of the firm and financial leverage. The study has a quantitative, explanatory design that involves the use of panel data retrieved in the annual reports of the banking and insurance firms. The SPSS was used to analyze the hypotheses through multiple linear regression. The statistical analysis was conducted using SPSS and included descriptive statistics, normality tests (skewness and kurtosis), correlation analysis, multicollinearity diagnostics (VIF and tolerance), and multiple linear regression models with and without control variables. The findings indicate that the board characteristics have a considerable influence on sustainability performance, whereas board independence, gender diversity, and professional experience show significant positive and statistically significant relationships but the impact of educational attainment and age vary across firms. The research therefore proposes the idea of improving board independence, more women representation and hiring of directors with various professional experiences to improve sustainability activities and long-term corporate resilience to the Palestinian and Jordanian markets