Board Characteristics and Sustainable Development Goal Disclosures in Pakistan

ABSTRACT The active involvement of companies, both from developed and developing nations, is necessary to achieve the Sustainable Development Goals (SDGs). This paper examines the role that the board of directors within companies can play in fostering sustainability development. It investigates the relationship between the characteristics of companies' boards and their sustainability engagement, as measured by the likelihood and extent of SDG disclosure. The study is conducted in Pakistan, a developing country where progress towards the SDGs is slow. The study employs a double‐hurdle model and reveals that the likelihood and extent of SDG disclosure are higher when there is at least one foreign director on the board. Furthermore, the likelihood of SDG disclosure is higher when the board meets more frequently, and the extent of SDG disclosure is lower when the board is larger and more independent. These results are informative for both firms and policymakers in pursuit of sustainable development.