Diverse boards and firm performance: The strategic role of carbon disclosure in heavily polluting companies in Bangladesh
Corresponding Author
Bablu Kumar Dhar
Department of Business Administration, Mahidol University International College, Mahidol University, Thailand
Department of Business, Daffodil International University, Dhaka, Bangladesh
Correspondence
Bablu Kumar Dhar, Department of Business Administration, Mahidol University International College, Mahidol University, Thailand.
Email: [email protected]
Search for more papers by this authorMosharrof Hosen
Faculty of Business and Management, UCSI University, Kuala Lumpur, Malaysia
Faculty of Business and Law, Taylor's University, Subang Jaya, Malaysia
Search for more papers by this authorMehmet Bağış
Department of International Trade and Finance, Faculty of Applied Sciences, Sakarya University of Applied Sciences, Sakarya, Turkey
Search for more papers by this authorMaria José Sousa
Department of Political Science and Public Policy, Instituto Universitário de Lisboa, Lisbon, Portugal
Search for more papers by this authorKazi Masuma Khatun
School of Social Sciences, The University of Waikato, Hamilton, Waikato, New Zealand
Search for more papers by this authorCorresponding Author
Bablu Kumar Dhar
Department of Business Administration, Mahidol University International College, Mahidol University, Thailand
Department of Business, Daffodil International University, Dhaka, Bangladesh
Correspondence
Bablu Kumar Dhar, Department of Business Administration, Mahidol University International College, Mahidol University, Thailand.
Email: [email protected]
Search for more papers by this authorMosharrof Hosen
Faculty of Business and Management, UCSI University, Kuala Lumpur, Malaysia
Faculty of Business and Law, Taylor's University, Subang Jaya, Malaysia
Search for more papers by this authorMehmet Bağış
Department of International Trade and Finance, Faculty of Applied Sciences, Sakarya University of Applied Sciences, Sakarya, Turkey
Search for more papers by this authorMaria José Sousa
Department of Political Science and Public Policy, Instituto Universitário de Lisboa, Lisbon, Portugal
Search for more papers by this authorKazi Masuma Khatun
School of Social Sciences, The University of Waikato, Hamilton, Waikato, New Zealand
Search for more papers by this authorAbstract
This study investigates the strategic role of carbon disclosure in shaping firm performance and board heterogeneity among heavily polluting companies in Bangladesh from 2013 to 2023. Using empirical data from 150 companies listed on the Dhaka Stock Exchange, the research examines the impact of board diversity—specifically gender, tenure, and educational heterogeneity—on carbon disclosure practices. The findings reveal that board gender and tenure heterogeneity negatively affect carbon disclosure, whereas educational heterogeneity has a positive impact. Additionally, firm performance shows a negative effect on carbon disclosure but does not significantly moderate the influence of board heterogeneity. These results underscore the importance of board diversity in enhancing carbon disclosure practices, thereby contributing to improved environmental management and firm performance in heavily polluting industries in Bangladesh. This research, grounded in legitimacy theory, stakeholder theory, and corporate governance literature, provides valuable insights for academics, practitioners, and policymakers focused on business strategies for environmental sustainability.
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