GOVERNANCE MATTERS: THE IMPACT OF BOARD CHARACTERISTICS ON SUSTAINABILITY DISCLOSURE IN CHINA
Abstract
This study investigates how board characteristics influence sustainability reporting among Chinese listed firms. Using a comprehensive panel dataset of A-share companies from 2013 to 2023, we examine the effects of board size, board independence, CEO duality, board meeting frequency, and the number of specialized board committees on two key outcomes: sustainability report disclosure levels and ESG scores. The analysis shows that board independence and the number of committees are positively and significantly associated with stronger sustainability reporting, highlighting the value of independent oversight and specialized governance structures. In contrast, board size and CEO duality show no significant effects, suggesting that these widely discussed governance features may play more context-dependent roles. Notably, frequent board meetings are negatively linked to sustainability disclosure, signaling that more meetings do not necessarily improve ESG outcomes. Robustness tests confirm the consistency of these findings. While the study offers valuable insights for scholars, practitioners, and policymakers, it also acknowledges limitations, including its focus on Chinese firms and quantitative design. Future research should explore additional governance dimensions and cross-country comparisons to deepen understanding of how board structures shape corporate sustainability performance.
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