An analysis of corporate governance factors influencing sustainability reporting disclosure in the Malaysian agro-industry

Purpose The effects of corporate governance characteristics such as board independence, board gender diversity, board experience and sustainability committee on sustainability reporting are examined in the context of Malaysian agro-industry companies. Design/methodology/approach A fixed effects regression with Driscoll-Kraay standard error and generalized method of moments (GMM) analysis was employed in this study to analyze the sustainability reporting of 56 publicly listed agro-industry companies over eight years (2016–2023) using a newly developed sustainability reporting index (SRI). Findings The findings suggest that having a sustainability committee is vital in enhancing sustainability reporting, as demonstrated by its strong positive relationship with sustainability reporting disclosure. Additionally, board gender diversity and board experience show a significant positive relationship with sustainability reporting, whereas board independence shows a negative relationship. Practical implications The observations from this study provide important perspectives on the significance of sustainability committees in companies, diversity and experience with sustainability-related board of directors' appointments. Social implications The findings provide practical insights for corporate governance stakeholders and policymakers in striving to enhance clarity as well as responsibility in sustainability reporting. Originality/value The newly constructed SRI enhances the ability to evaluate sustainability practices, making a meaningful contribution to the literature by offering a robust, multidimensional measure.