Impact of Corporate Governance on Sustainability Reporting: Empirical Study in the Australian Resources Industry

20 Pages Posted: 23 Jan 2017

See all articles by Tricia Ong

Tricia Ong

School of Business and Law, Edith Cowan University

Hadrian G. Djajadikerta

School of Business and Law, Edith Cowan University

Date Written: January 20, 2017

Abstract

This empirical study evaluates the impact of corporate governance on sustainability reporting by investigating companies operating in the Australia’s resources industry. Specifically, this study investigates the relationships between the total disclosures and, separately, the three aspects of sustainability disclosures - economic, environmental and social - and various attributes of board composition, including independent directors, multiple directorship, and women directors. Significant positive correlations were found between sustainability disclosures and the proportion of independent directors, multiple directorships and women directors on the board. Companies without CEO duality and those with a sustainability committee disclosed more sustainability information. These results provide empirical evidence to support that companies with greater board diversity that promotes more effective corporate governance are providing greater extent of sustainability disclosures.

Keywords: Corporate governance, Sustainability reporting, Resources industry, Australia, Hard and soft disclosures

JEL Classification: G34,M14, M41

Suggested Citation

Ong, Tricia and Djajadikerta, Hadrian G., Impact of Corporate Governance on Sustainability Reporting: Empirical Study in the Australian Resources Industry (January 20, 2017). 8th Conference on Financial Markets and Corporate Governance (FMCG) 2017. Available at SSRN: https://ssrn.com/abstract=2902495

Tricia Ong (Contact Author)

School of Business and Law, Edith Cowan University ( email )

Joondalup campus
270 Joondalup Drive
Joondalup, WA 6027
Australia
63045047 (Phone)

Hadrian G. Djajadikerta

School of Business and Law, Edith Cowan University ( email )

100 Joondalup Drive
Joondalup, WA 6027
Australia

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