Determinants of sustainability reporting decision: evidence from Pakistan. (2nd January 2022)

• Record Type: Journal Article
• Authors: Hasan, Arshad; Hussainey, Khaled; Aly, Doaa
• Is Part Of: Journal of sustainable finance & investment. Volume 12:Number 1(2022)
• Page Start: 214
• Page End: 237
• Publication Date: 2022-01-02
• Subjects: Sustainability reporting -- voluntary disclosures -- corporate governance -- stakeholder theory -- emerging economy -- Pakistan; Social responsibility of business -- Periodicals; Sustainable development -- Finance -- Periodicals; 332
• DOI: 10.1080/20430795.2021.1964813
• Languages: English
• ISSNs: 2043-0795

Abstract

ABSTRACT: We investigate the determinants of corporate sustainability reporting decision. We use a logistic regression model to analyse data collected from a sample of 138 firms listed on the Pakistan Stock Exchange for the years 2009–2018. We find that firms with more gender-diverse boards, larger audit committees and higher institutional ownership are more likely to issue sustainability reports. We also find that concentrated ownership, managerial ownership, foreign ownership and audit committee independence negatively influence the firms' sustainability reporting decision. The findings provide valuable insight to Pakistani policymakers by identifying the attributes that require regulatory focus to achieve the public policy objective of sustainable development. We are the first to explore the determinants of sustainability reporting decision in Pakistan. It provides empirical evidence to regulators and policymakers in Pakistan and other emerging markets who have already adopted a governance framework and are considering sustainability reporting in their respective contexts.