Determinants of corporate climate change disclosure : Is the mediating role of corporate strategic response to environmental governance and policy matter? Evidence from emerging market

We examine the determinants and the mediating role of corporate strategic response to environmental governance and policy (EGP) with the extent of corporate climate change disclosure (CCD) through the isomorphic pressures. We collect data from annual reports of Bangladeshi listed manufacturing corporations and we analyze data via partial least square-structural equation modeling (PLS-SEM). Our study findings indicate that board specialty in terms of independent directorship, board human capital reflected by education, and experience, as well as the corporate values include corporate convictions and commitments reflected by vision, mission, core objectives have significant and positive relationships with CCD. The EGP also mediates the abovementioned relationships. Furthermore, the EGP mediates the relationship between corporate attributes (total assets, ROA, ROE, leverage) and CCD. Our findings suggest that when corporations strategically response to environmental issues by putting in place environmental-related governance and policy, factors such as corporate attributes, board specialty, and corporate values play stronger role in promoting corporate climate change disclosure in developing economies like Bangladesh. Our results offer implications to policymakers, governmental units, professional bodies, social catalysts, and industry practitioners, on their important role in promoting sustainable development by encouraging corporations to manage their environmental issues strategically via corporate governance, strategic environmental management and climate change disclosure.

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