BOD characteristics and their impact on the link between ESG disclosure and integrated reporting disclosure quality: a study of Egyptian non‑fnancial frms

Abstract

This study examines the impact of environmental, social, and governance (ESG) disclosure on integrated reporting disclosure quality (IRDQ) and the moderating role of board of directors (BOD) characteristics. Prior research on ESG dis‑ closure and IRDQ has been limited, especially in emerging economies like Egypt. Furthermore, the infuence of BOD attributes has been underexplored. This study aims to address these gaps. A sample of 34 Egyptian non-fnancial com‑ panies under ESG disclosure mandates from 2015 to 2021 is analyzed using regression analysis. The results show a sig‑ nifcant positive association between ESG disclosure and IRDQ. Furthermore, BOD gender diversity and size are found to positively moderate the ESG–IRDQ relationship. These fndings highlight that appointing more women on boards and increasing board size can improve IRDQ when frms engage in ESG disclosure. However, the small sample size of ESG-mandated companies and inherent limitations in constructing disclosure indices constrain the generalizability of results. Overall, this study provides timely empirical evidence on ESG adoption within the unique Egyptian context and its infuence on integrated reporting (IR). It contributes to literature by identifying specifc BOD characteristics that enhance IRDQ. The results ofer practical insights into how companies, regulators, and stakeholders can leverage board diversity and size as well as ESG disclosure to improve IRDQ.