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Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 51, No. 6, pp.1791-1815
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2022
Received 26 Aug 2022 Revised 23 Oct 2022 Accepted 09 Nov 2022
DOI: https://doi.org/10.17287/kmr.2022.51.6.1791

기업지배구조와 ESG/통합보고서의 중요성 공시 품질: CEO 파워와 이사회 특성의 상호작용

Keun-Hyo Yook ; Mi-Hwa Choi
(First Author) Professor of Division of Business Administration at Busan University of Foreign Studies yook@bufs.ac.kr
(Corresponding Author) Associate professor of Division of Business Administration at Busan University of Foreign Studies choimh@bufs.ac.kr
The Influence of Corporate Governance toward Materiality Disclosure in ESG/Integrated Reporting: Interaction of CEO Power and Board Characteristics


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper empirically examines the effect of corporate governance on MDQ(materiality disclosure quality), especially the interaction effect between CEO power and characteristics of the board of directors. The results of this study are as follows: DUALITY (CEO and chairperson are the same person) negatively affect the MDQ but CEO tenure did not significantly affect the MDQ. Board Size has a significant positive relationship with the MDQ, whereas Board Independence had no significant effect on the MDQ. The activities of the audit committee have a no significant association with the MDQ. We find that MDQ tends to increase when non-DUALITY are combined with large size of the board of directors. Next this study confirmed that the relationship between governance and MDQ varies depending on the report type. The contribution of the study is, first of all, that we are the first to show that the interplay between powerful CEOs(non-DUALITY) and the size of their boards, also the results could be beneficial for a number of users of non-financial information, such as regulators, investors, auditors and NPO/NGOs to make better decisions.

Keywords:

Corporate Governance, Materiality Disclosure Quality, ESG/integrated reporting, CEO power, Board Characteristics

Acknowledgments

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea(NRF-2021S1A5A2A01067418)

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∙ The author Keun-Hyo Yook is currently a professor of Division of Business Administration, Busan University of Foreign Studies. He received master’s degree from Pusan ​​National University and master’s degree in economics from PuKyong National University, and Ph.D. in business administration from Dong-A University. He has served as a visiting professor at Kobe University, Yokohama National University, Osaka Prefectural University in Japan, and Akron University, USA. The author’s main research areas are target costing, strategic management accounting, environmental accounting, and ESG management.

∙ The author Mi-Hwa Choi is currently an associate professor of Division of Business Administration, Busan University of Foreign Studies. She received her Ph. D. in business administration from Busan National University. She served as a visiting professor at the Akron University, USA. The author’s main research areas are ESG management, CSR, valuation, accounting education, and Edutech.