•  
  •  
 

JEL Classification System

G21, G30, M14, M40

Abstract

Financial companies are required to integrate environmental, social, and governance (ESG) into their operational and risk management strategies. In this case, ESG disclosure reflects the corporation’s commitment to sustainability and good governance. The objective of this study is to examine the influence of board characteristics on ESG disclosure, with the audit committee as a moderating variable. The study used a moderated regression analysis method. The research data comes from the annual reports of companies listed on the Indonesian stock market for four years. The research data consisted of 124 corporations from 31 financial corporations, including 25 banking sector companies, 2 finance services sub-sectors, 2 insurance sub-sectors, and 2 holding and investment companies sub-sectors. The research findings indicate that board size influences ESG disclosure. Furthermore, the audit committee’s effective oversight and control functions have encouraged corporations to disclose more extensive and higher-quality ESG information. The contribution of this research lies in advancing the corporate governance and sustainability literature by showing that the effectiveness of ESG disclosure is determined not only by the board of directors but also by the support from internal governance mechanisms, particularly the audit committee.

Download

Included in

Business Commons

Share

COinS