Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Female Directors Control Towards Environmental Corporate Disclosure and Firm Performance

Author(s): Nor Bahiyah Omar, Norhayati Zamri, Nor Asyiqin Salleh, Roshayani Arshad

Purpose: The main objective this research is to examine the relationship between corporate governance component, namely board composition – in particular, board gender diversity (i.e. female vs. male directors), and environmental corporate disclosure, as well as firm performance. Methodology/Methodology/Approach: The sample of this research comprises of the top 150 public listed company, which shares were traded on the Main Board of Bursa Malaysia Berhad in 2017. The secondary data obtained from annual and sustainability reports published by the sample companies from 2014 to 2017 are used for this empirical research. Findings: The results of Structural Equation Modelling – Partial Least Square analysis suggests that there is an existence of a positive significant association between the board gender diversity (presence of female directors in boardroom) and the company’s environmental corporate reporting or disclosure. Significant Contribution: This research creates new knowledge by examining the board gender diversity and the company’s environmental corporate disclosure. It is expected that The board of directors has been regarded as one of the important tools or mechanisms of corporate governance, specifically in monitoring and making decision for the benefit of the organization as a whole. The decision made can be influenced by the demographic characteristics.

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