Beyond boardroom diversity and environmental, social, and governance transparency: Evidence of the emerging market firms

Since its inception, the environmental, social, and governance (ESG) framework has increasingly captured the attention of stakeholders across the globe. The Malaysian government, recognizing the critical importance of ESG principles, has actively advocated for enhanced transparency within the private sector by mandating comprehensive ESG disclosure among public-listed companies (PLCs). Responding to Ismail and Latiff’s (2019) call, this study explored the complex interplay between boardroom dynamics and ESG disclosure, integrating stakeholder theory, agency theory, and resource dependency theory to illuminate the multifaceted relationships within this context. Utilizing the weighted least squares (WLS) regression method, this research meticulously analyzed 63 firms’ data from 2018 to 2022, examining how various board characteristics influence ESG disclosure practices. The findings revealed a significant positive correlation between board expertise, foreign board presence, and board interlocking with ESG disclosure, while larger board sizes were found to negatively impact ESG disclosure practices. These insights not only highlight how specific board attributes enhance or hinder effective governance and ESG practices but also pave the way for policymakers and practitioners to develop actionable strategies that further promote ESG principles. Moreover, this study opened new avenues for academic inquiry, providing a robust foundation for future research on corporate governance and ESG.