Board Dynamics: Balancing Quantity and Quality of Non‐Financial Information Reports Through Director Composition

ABSTRACT This study investigates the influence of board composition on the quantity and quality of non‐financial information (NFI) reports in firms listed on the Ibex35 index. Utilizing a longitudinal panel data analysis spanning 2015, 2017, and 2019, the research evaluates the roles of independent, proprietary, and female directors. Results indicate that independent and proprietary directors significantly enhance the quantity of NFI disclosed but exhibit no impact on quality. Conversely, female directors positively affect the quality of NFI reporting without influencing quantity. These findings underline the distinct contributions of director types to NFI transparency, emphasizing the need for tailored board composition strategies to align with organizational objectives. The study further highlights the importance of considering both NFI quantity and quality as separate constructs, offering valuable insights for corporate governance practices, legislative reforms, and future research on sustainable business reporting.