The impact of CEO power on modern slavery disclosures: an empirical investigation in Australian listed firms

Purpose The purpose of this study is to examine the impact of chief executive officer (CEO) power on modern slavery disclosures (MSD) among Australian listed firms and to assess whether board gender diversity (BGD) moderates this relationship. Design/methodology/approach The research utilises a robust data set from the Australian Stock Exchange (ASX 100) spanning 2017–2023. It uses content analysis and fixed-effects panel regression analysis. This methodology examines the interplay among CEO characteristics, board composition and MSD, thereby providing a comprehensive understanding of governance dynamics. Potential endogeneity (including reverse causality and omitted variable bias) is explicitly acknowledged and mitigated through lagged specifications and robustness checks, including alternative index specifications and additional estimators reported in the robustness section. Findings The analysis reveals that heightened CEO power negatively influences MSD transparency, suggesting that more dominant CEOs may curtail disclosures to retain control and minimise external oversight. Conversely, a greater proportion of female board directors significantly mitigates this negative effect, supporting the critical mass theory. This theory posits that substantial female representation enhances governance and transparency. Practical implications The study highlights the crucial role of board diversity in mitigating the adverse effects of concentrated CEO power. It advocates policy reforms to enhance board diversity, foster more ethical governance practices and improve transparency in corporate reporting on modern slavery. Implications extend beyond formal compliance to governance design that reduces symbolic reporting and strengthens due diligence, key performance indicator (KPI) monitoring and board-level accountability under mandatory disclosure regimes. Originality/value This research contributes to the literature on corporate governance and ethical reporting by providing empirical evidence on the moderating role of BGD in the relationship between CEO power and MSD. It underscores the importance of gender diversity in enhancing corporate transparency and governance, offering valuable insights for policymakers, corporate strategists and scholars seeking to advance corporate ethics. Measurement transparency is strengthened by clarifying the MSD index’s alignment with the Australian Modern Slavery Act and by reporting validation procedures beyond internal reliability checks (e.g. pilot coding and inter-coder agreement).