Conceptualization of Corporate Environmental Disclosure, Earnings Management, and Board Financial Literacy

This study explores the interconnectedness between Corporate Environmental Disclosure (CED), Earnings Management (EM), and board financial literacy within the context of emerging ASEAN economies.While CED enhances transparency, sustainability, and public trust, its coexistence with earnings manipulation raises concerns about managerial opportunism and financial integrity.Using Stakeholder Theory as a lens, the study highlights the critical role of board financial literacy in mitigating EM and aligning environmental and financial disclosures with stakeholder expectations.Case studies from Malaysia (Sime Darby Plantation), Indonesia (PT Pertamina), Thailand (CP Group), and Vietnam (Vinamilk) provide practical insights, revealing that firms excel in sustainability initiatives but face challenges related to financial irregularities.Financially competent boards emerge as key drivers of ethical governance, improving oversight, reducing agency conflicts, and enhancing reporting quality.The findings underscore the need for robust corporate governance frameworks that integrate financial expertise to balance sustainability goals and financial transparency.This study bridges research gaps by synthesizing literature and proposing a conceptual framework, offering actionable insights for policymakers, corporate leaders, and stakeholders in emerging markets.By addressing CED and EM challenges, firms can strengthen governance practices, build stakeholder trust, and ensure long-term sustainability.