1DBA Scholar at Wawasan Open University, Penang, Malaysia
2Associate Professor at Wawasan Open University, Penang, Malaysia
3PhD Scholar at USM, Penang and Psychologist at KKM, Malaysia
4Distinguished Professor at California Institute of Advanced Management (CIAM) and Professor at Georgetown University, Washington DC, USA
Online Published on 22 August, 2023.
The primary objective of this conceptual paper is to investigate the correlation between board composition, diversity, independence, and the extent of environmental, social, and governance (ESG) disclosure within publicly listed boards in Malaysia. This study undertakes a comprehensive review and examination of the extant body of literature pertaining to the relationship between corporate governance variables and ESG disclosure. The results derived from the comprehensive analysis of existing scholarly works indicate that there is a positive relationship between board independence, board size, and women directorship, and the level of voluntary disclosure of ESG-related information. However, it is important to note that board ownership and CEO duality do not exhibit a significant impact on the extent of ESG disclosure. The paper additionally emphasises the significance of board diversity, specifically gender diversity, in fostering transparency, adherence to ethical standards, and overall organisational effectiveness. This study makes a valuable contribution to the existing body of literature on the quality of ESG reporting and the diversity of boards, with a specific focus on emerging markets such as Malaysia.
ESG, Corporate Governance, Board Composition, Literature Review, Malaysia
