The effect of the board of directors, audit committee, and institutional ownership on carbon disclosure quality: The moderating effect of environmental committee

Abbas Abdelrahman Adam, Zalailah Salleh, Waleed M. Alahdal, Asaad Mubarak Hussien, Mohammed Bajaher, Saeed Rabea Baatwah

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

This study investigates the impact of the board of directors' effectiveness (BODEF), audit committee effectiveness (AUDEF), and institutional ownership (IO) on carbon disclosure quality (CDQ) and examines the moderating effect of the environmental committee (EC) on such impacts. Thus, to evaluate CDQ, a self-constructed index was established based on standards and recommendations stated in several Malaysian and international guidelines related to carbon reporting. This study employs panel data analysis on 200 publicly listed Malaysian firms observed from 2015 to 2019. The findings showed a significant positive effect of BODEF, AUDEF, and IO on CDQ. Additionally, the results showed that EC has an insignificant moderating influence on the impact of BODEF and AUDEF on CDQ; meanwhile, it strengthens the effect of IO on CDQ. The reported findings offer valuable insights to policymakers, enhancing their awareness of carbon disclosure practices in Malaysia and emphasizing the significance of corporate governance in this context.

Original languageEnglish
Pages (from-to)2254-2270
Number of pages17
JournalCorporate Social Responsibility and Environmental Management
Volume32
Issue number2
DOIs
StatePublished - Mar 2025

Keywords

  • and carbon disclosure quality
  • audit committee effectiveness
  • board of directors effectiveness
  • environmental committee
  • institutional ownership
  • self-constructed index

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