The effect of ownership structures and governance characteristics on the company's sustainability report

Subject Areas :

Hamed Yadegari far ¹ ( Department of Accounting, Isfahan (Khorasgan) Branch, Isfahan, Iran )
Masood Fooladi ² ( Assistant Professor, Department of Accounting, Shahin Shahr Branch, Islamic Azad University, Shahin Shahr, Isfahan, Iran )

Received: 2023-11-01 Accepted : 2023-12-20 Published : 2023-12-21

Keywords: Corporate sustainability report, governance characteristics, ownership structures.,

Abstract :

Purpose: Managers can strategically use the disclosure of corporate social responsibility and sustainability to hide their opportunistic behavior. Based on this, it is necessary to implement a monitoring mechanism to improve the social responsibility disclosure situation. Therefore, the purpose of this research is to investigate the impact of ownership structures and governance characteristics on the company's sustainability report. Methodology: In order to test the hypotheses, a sample consist of 169 companies listed on the Tehran Stock Exchange during the years 2015 to 2021 was selected and a panel data multiple regression model was used. Findings: Findings of this study show that there is no positive relationship between the board size, the number of board meetings and the company's sustainability report. There is no positive and significant relationship between the ratio of independent members of the board of directors and the company's sustainability report. Also, there is no significant relationship between government ownership and the company's sustainability report. There is no positive relationship between the size of audit firm and the company's sustainability report. Originality: Findings of this study may help investors and other users of accounting information to better understand the effect of board of directors on the long-term sustainability of companies and is important in their decision-making. Methodology: In order to test the hypotheses, a sample consist of 169 companies listed on the Tehran Stock Exchange during the years 2015 to 2021 was selected and a panel data multiple regression model was used. Findings: Findings of this study show that there is no positive relationship between the board size, the number of board meetings and the company's sustainability report. There is no positive and significant relationship between the ratio of independent members of the board of directors and the company's sustainability report. Also, there is no significant relationship between government ownership and the company's sustainability report. There is no positive relationship between the size of audit firm and the company's sustainability report. Originality: Findings of this study may help investors and other users of accounting information to better understand the effect of board of directors on the long-term sustainability of companies and is important in their decision-making.

References:

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