Board Characteristics and Sustainable Development Goal Disclosure in Pakistan

Abstract Description: This paper draws on agency, resource dependency and stakeholder theory to examine the relationship between characteristics of the board of directors and the likelihood and extent of Sustainable Development Goal (SDG) disclosure in Pakistan. Using hand-collected data from the annual reports, sustainability reports and websites of a sample of companies included in the Karachi Stock Exchange (KSE) 100 index, this study reveals that less than 50 percent of the sample firms disclose information on the SDGs, which is remarkable given the initiatives taken by the Pakistani government and stock exchange to achieve SDG disclosure. The findings from a double-hurdle regression analysis reveal that the presence of at least one foreign director on the board is positively associated with both the likelihood and extent of SDG disclosure. The likelihood of SDG disclosure is further positively associated with the frequency of board meetings and firm profitability. Additionally, the extent of SDG disclosure is positively associated with firm size and membership of an environmentally sensitive industry. Interestingly, board size and board independence are negatively related with the extent of SDG disclosure. This study is the first to explore the relationship between board attributes and SDG disclosure in Pakistan and the results are informative for both firms and policymakers in pursuit of sustainable development.