Published Online:July 2024
Product Name:The IUP Journal of Corporate Governance
Product Type:Article
Product Code:
Author Name:Kapil Shobhwani and Shilpa Lodha
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:18
The study investigates the impact of ownership structure—foreign ownership, government ownership, managerial ownership, and family ownership—on firms’ ESG disclosure practices. It uses corporate governance variables (board independence, board size, and CEO duality) as moderators. The ESG disclosure score was collected for the year 2021-2022 from CRISIL and financial data was collected from Prowess IQ. Nifty 50 index of NSE was used as a platform to shortlist firms. Regression results indicate that foreign ownership and managerial ownership have a positive and insignificant effect on the level of ESG disclosure, and environmental, social and governance disclosure, while there is negative and insignificant impact of government ownership on the level of ESG disclosure and environment and government disclosure. In addition, family ownership has a negative and insignificant impact on the level of ESG disclosure. Also, corporate governance (board’s independence, board size, CEO duality) plays a significant role in improving disclosure quality
In recent decades, the evolution of the disclosure landscape in the context of well-established global interest in non-financial information has given rise to many concepts related to social, economic, and environmental issues that have emerged as a reaction to corporate practices. One of the stakeholder demands is disclosure of information about a company’s activities, which also serves as a way of communication with other stakeholders. The increased public demand for information on ESG activities has put pressure on businesses to undertake and disclose more ESG activities (Ioannou and Serafeim, 2012). This has become a critical need as stakeholders expect non-financial reporting that takes into account all three dimensions (O’Dwyer and Owen, 2005). Ownership structures are one of the components that define a company’s identity. The ownership structure influences institutional monitoring and firms’ motivations to disclose information (Eng and Mak, 2003). As per legal requirements, ownership structure information must be disclosed in yearly reports by all listed Indian corporations.