MDF Theses and Dissertations (2024)

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Browsing MDF Theses and Dissertations (2024) by Author "Saka, N. A."

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    Impact of board diversity on Environmental, Social and Governance disclosure in listed companies in Kenya
    (Strathmore University, 2024) Saka, N. A.
    The study undertaken focused on companies listed on the Nairobi Securities Exchange, to determine the impact of board diversity on ESG disclosure between the years 2018- 2022. In the 21st century, there has been a notable surge in sustainability concerns among governments, multinational corporations, public and private companies, as well as their stakeholders. Board plays a pivotal role in facilitating efficient disclosures as they embody firm’s values and connect with stakeholders. Using the Code of Corporate Governance, 2015 as a guide for board diversity variables, those that were assessed are; board age diversity, board gender diversity, board independence and board capabilities & skills, and the controlled variables; firm size, firm age and firm leverage. The empirical literature on board diversity and ESG disclosures has explored board diversity variables like independence, age, gender, and skills, but few studies have specifically identified the most crucial among these variables and this study aimed to fill this gap. Objectives included assessing the impact of board diversity practices on ESG disclosures, compliance levels with policies and regulations, and stakeholder perceptions. The study was pegged on the agency and resource dependency theories. The study adopted the positivist philosophy. The population comprised 60 NSE-listed companies, a descriptive research design was employed, where quantitative data collected through content analysis and the use of a questionnaire. Secondary data underwent panel regression analysis, while primary data was subjected to descriptive analysis. The findings of the study were that board gender diversity and board independence had a significant negative relationship with ESG whereas board capabilities and skills had a significant positive relationship. The following industries had a positive and significant relationship with ESG: banking industry, commercial industry and the construction industry and finally the years 2021 and 2022 had a positive significant relationship with ESG. Study findings will assist in developing more efficient policies to promote the disclosure of ESG activities of firms listed on the NSE and the encouragement of creation of awareness on ESG matters to stakeholders. By adding to existing literature on board diversity and ESG disclosure, the study will contribute to advancing discussions around ways in which the board attributes can be managed for efficient and effective disclosure.