Impact of board characteristics on environmental disclosures for listed mining companies in China

Abstract

This paper examines the impact of board characteristics on environmental accounting information disclosure for listed mining companies in China. Board characteristics were categorized into board size, independence characteristics, diversity characteristics, behavioral characteristics, and incentive characteristics. The study further extended to analyze the impact of board characteristics on environmental disclosure before and after the promulgation of Environmental Information Disclosure Degree (EIDD). Using multiple regression analysis with a sample of 34 listed mining companies from both Shanghai and Shenzhen Stock Exchanges covering 2000–2018 period, we find a significant positive correlation between board size and Environmental Accounting Disclosure Index (EADI). Also, board independence measured by independent directors and the separation of the chief executive officer from board chairman revealed a positive and significant relationship with EADI. Similarly, behavioral characteristics measured by board meeting were positively correlated with EADI at 1% significant level. In terms of diversity characteristics, both females on board and foreign nationals revealed a negative and insignificant relationship with EADI, while incentive characteristics saw an inconclusive correlation with EADI. Our findings are useful to top managers and regulators who are interested in improving corporate governance practices and environmental information disclosure.