Document Type : Research Paper

Authors

• Mohsen Khotanlou ¹
• Mahdi Kazemioloum ²
• Yasaman Moradi Behjat ³

¹ Assistant Prof., Department of Accounting, Faculty of Economics and Social Science, Bu-Ali Sina University, Hamedan, Iran.

² Assistant Prof, Department of Accounting, Faculty of Economic and Social Science, Bu-Ali Sina University, Hamedan, Iran.

³ Master of Accounting, Department of Accounting, Alvand Institute of Higher Education, Hamedan, Iran.

Abstract

In recent years, non-financial disclosure has become increasingly important for stakeholders in making informed decisions. Non-financial disclosures by companies, such as Environmental, Social, and Governance (ESG) information disclosure, can be influenced by the characteristics of directors and other corporate governance mechanisms. Accordingly, the purpose of this research is to investigate the impact of board gender diversity on ESG disclosure, with the moderating role of audit committee characteristics. In this research, data from 78 companies listed on the Tehran Stock Exchange during the period 2013 to 2024 (858 firm-years) were collected, and the research hypotheses were tested using pooled data and multiple regression. The research findings show that gender diversity on the board of directors has a positive and significant impact on ESG disclosure; in other words, with an increase in the presence of women on the board, the ESG disclosure index also increases. The research findings also indicated that the independence and financial expertise of the audit committee moderates the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members do not have a moderating effect on this relationship. This study provides valuable insights for managers and investors to assess the role of gender diversity on the board of directors and audit committees in ESG disclosure, and to assist them in making better decisions. Furthermore, legislators and policymakers can revise corporate governance mechanisms to promote greater inclusion of women not only on company boards but also in sub-committees to better protect the rights of stakeholders.In recent years, non-financial disclosure has become increasingly important for stakeholders in making informed decisions. Non-financial disclosures by companies, such as Environmental, Social, and Governance (ESG) information disclosure, can be influenced by the characteristics of directors and other corporate governance mechanisms. Accordingly, the purpose of this research is to investigate the impact of board gender diversity on ESG disclosure, with the moderating role of audit committee characteristics. In this research, data from 78 companies listed on the Tehran Stock Exchange during the period 2013 to 2024 (858 firm-years) were collected, and the research hypotheses were tested using pooled data and multiple regression. The research findings show that gender diversity on the board of directors has a positive and significant impact on ESG disclosure; in other words, with an increase in the presence of women on the board, the ESG disclosure index also increases. The research findings also indicated that the independence and financial expertise of the audit committee moderates the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members do not have a moderating effect on this relationship. This study provides valuable insights for managers and investors to assess the role of gender diversity on the board of directors and audit committees in ESG disclosure, and to assist them in making better decisions. Furthermore, legislators and policymakers can revise corporate governance mechanisms to promote greater inclusion of women not only on company boards but also in sub-committees to better protect the rights of stakeholders.In recent years, non-financial disclosure has become increasingly important for stakeholders in making informed decisions. Non-financial disclosures by companies, such as Environmental, Social, and Governance (ESG) information disclosure, can be influenced by the characteristics of directors and other corporate governance mechanisms. Accordingly, the purpose of this research is to investigate the impact of board gender diversity on ESG disclosure, with the moderating role of audit committee characteristics. In this research, data from 78 companies listed on the Tehran Stock Exchange during the period 2013 to 2024 (858 firm-years) were collected, and the research hypotheses were tested using pooled data and multiple regression. The research findings show that gender diversity on the board of directors has a positive and significant impact on ESG disclosure; in other words, with an increase in the presence of women on the board, the ESG disclosure index also increases. The research findings also indicated that the independence and financial expertise of the audit committee moderates the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members do not have a moderating effect on this relationship. This study provides valuable insights for managers and investors to assess the role of gender diversity on the board of directors and audit committees in ESG disclosure, and to assist them in making better decisions. Furthermore, legislators and policymakers can revise corporate governance mechanisms to promote greater inclusion of women not only on company boards but also in sub-committees to better protect the rights of stakeholders.

Keywords

• Environmental
• Social
• and Governance Disclosure
• Board Gender Diversity
• Audit Committee

Main Subjects

• Accounting and various aspects of finance