CORPORATE GOVERNANCE AND CARBON EMISSIONS DISCLOSURE: THE MODERATING ROLE OF SUSTAINABILITY COMMITTEE
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Date
2025-08-24
Authors
Salameh, Ali
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Publisher
An-Najah National University
Abstract
This study explores how corporate governance mechanisms, particularly board characteristics, influence carbon emissions disclosure. Given stakeholder demands for transparency and regulatory pressure emphasizing environmental accountability, governance structures play a crucial role in enhancing environmental disclosures. The study seeks to understand how factors such as board independence, gender diversity, board size, meeting, CEO duality, and the presence of a sustainability committee affect carbon emissions disclosure. The model makes use of 513 firms selected among STOXX Europe 600 index across 17 countries, and 4,617 firm-year observations taken in the period 2015-2023. Information is taken out of the Asset4- LSEG Workspace database. The research tested the hypotheses by using panel data and Based on the pooled least squares (OLS) regression method to test the study hypotheses. The results showed that board independence, gender diversity, board meetings, and board size have a positive impact on CED, and verify that active boards with assigned diversity assist in transparency that extends beyond legal compliance. In contrast, CEO duality is associated with a negative relationship with disclosure, suggesting that consolidation of leadership may impede efforts for transparency.
Additionally, the presence of a sustainability committee appears to significantly moderate the effects of several board characteristics, except board independence, highlighting its complex role in improving carbon emission disclosure. The study highlights practical implications for governance frameworks to align with changing expectations about sustainability and regulatory expectations.