BOARD DIVERSITY AND ESG NARRATIVE DISCLOSURE: EVIDENCE FROM SECTORAL ANALYSIS IN EMERGING MARKETS
Keywords:
Stock diversity; ESG disclosure; ESG narrative reporting; emerging markets; gender diversity; sectors and industries; corporate governance; sustainability reportingAbstract
As environmental, social, and governance (ESG) concerns rise to prominence in capital markets, the role of board composition in shaping the quality of ESG-related narrative disclosure becomes increasingly relevant. The current study examines how diverse board composition, including gender, professional background, and tenure, affects the quality of ESG narrative reporting across industry sectors in emerging markets. Content analysis of annual and sustainability reports measures ESG narrative quality using a sample of publicly listed firms in selected emerging economies, based on a panel dataset. The outcome indicates that gender and professional Diversity in corporate boards have enhanced the strategic and forward-looking nature of ESG narrative disclosure, most notably in the energy, financial, and manufacturing sectors. The findings contribute to the narrative of corporate transparency and sustainable governance, and they have operational implications for regulators, investors, and companies in turbulent institutional settings.
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