Governance and sustainability: How CEO duality shapes reporting practices in an emerging economy

This study examines the relationship between chief executive officer (CEO) duality and sustainability reporting based on 200 companies listed on the Bombay Stock Exchange (BSE) from 2018 to 2023. Secondary data from corporate governance, sustainability, and annual reports were analyzed using content analysis based on the GRI-G4 framework. The findings revealed that, on average, firms disclosed 72 percent of the G4 elements. Regression analysis showed that CEO duality has a significant negative impact on sustainability disclosures, supporting the idea that concentrated leadership power reduces accountability and transparency. This study contributes to agency theory, highlighting the benefits of separating the roles of CEO and chairperson for improved governance and disclosure quality. For corporate managers, the results suggest that leadership structures should avoid consolidating power in one individual to foster transparency and stakeholder trust. For policymakers, the study underscores the importance of regulations like the role separation rule of the Securities and Exchange Board of India (SEBI) to address governance risks and support credible sustainability reporting.