1. Do Female Members on Board Lead to a Sustainable Integrated ‎Report?‎

2. Introduction
Financial Crisis
Reform actions to enhance the quality of ‎corporate governance
Action
Change their business reporting which does not only addressed to shareholders, but also market labour, ‎business parties, and society. ‎
Benefit
Helps to overcome the shortcomings of ‎conventional ‎approaches to disclosure, by extending the ‎concept financial disclosure to the sustainability and eco-system.
The adoption of governance practices may provide new chance for sustainable report disclosure.
Question
While (El-Chaarani, 2014) argue that disclosure and corporate governance practices are known of being the most ‎significant mechanisms that reduce the hiding and manipulating information related to the firm’s financial ‎and non-financial situation ‎.Terjesen et al. (2009) argue that the effect of gender diversity on boards lead to effective governance. From that two fact our question is arise:
Do Female Members on Board Lead to a Sustainable Integrated ‎Report?‎
Amina Mohamed Buallay

3. Introduction GAP Research Objective Contribution Implication
The current theories and studies pretend to be inefficient so far in determining how board diversity affect the sustainable ‎reporting’s taking into consideration different environments, cultures and regions.
Research Objective
This study investigates empirically the capability of gender diversity to support the sustainable ‎integrated reporting disclosure (Environmental, Social and Governance practices).
Contribution
This study improve our understanding of corporate governance in ‎practice as a basis for scout about how sustainable reports are disclosed.
Implication
The results of this study can used to present a successful model for firms to enhance and ‎concentrate on the role of gender diversity in enhancing the sustainability disclosure.
The is study may bring legitimacy to the International ‎Integrated Reporting Council and Governance Code‎
Amina Mohamed Buallay

4. Literature review: Significance of Board Diversity
Negative side of Gender Diversity
Positive side of Gender Diversity
Farrell and Hersch (2005): stricter monitors and this will decrease the agency problems
Anderson et al. (2011): efficient controlling for stakeholders and managers
Jia and Zhang (2013): better resistance to corporate risks
Gul et al. (2011): enhance communication
O’Reilly et al. (1989) and Lang (1986): cause communication problems.
Amina Mohamed Buallay

5. Literature review: Gender Diversity and Disclosure
Bear et al. (2010): strength the firm’s CSR rating.
Eagly et al. (2003) and Eagly and Johnson (1990): facilitate more informed decisions
Rudman and Glick (2001): more sensitive to corporate social responsibility and environmental issues
Frias-Aceituno et al. (2013): positive association between board gender diversity and reporting.
Pfeffer and Salancik (1978) positive effect between board gender diversity in the boardroom and the likelihood of voluntary disclosure.
Prado and Garcia (2010): no significant influence of gender diversity on the disclosure.
Ali et al. (2014): non-linear relationship between voluntary disclosure and gender diversity.
Positive
Negative
Amina Mohamed Buallay

6. Literature review: Theories linked Governance and Sustainable Reporting
Resource Dependency theory suggests that those responsible for recruiting directors seek particular characteristics in new appointees to complement the existing board and to provide connections to new resources to secure the future of the firm (Pfeffer and Salancik, 1978).
Resource Dependency Theory
Stakeholder Agent theory combines the Agency theory and stakeholder theory. The theory states that sustainability information is expected to reduce information asymmetries and agency cost that emerges between the stakeholders and companies (Shankmann, 1999).
Stakeholder Agent Theory
Amina Mohamed Buallay

7. Hypothesis Development
In line with the previous empirical studies and the theories supporting both gender diversity and sustainable integrated report disclosure
we conclude that gender diversity can lower the conflict of interest and may lead to a more sustainable strategy
H1: Female Members in the Board of Directors Increase ESG Disclosure
Amina Mohamed Buallay

8. Study Model Dependent Variables Independent Variables
Total Asset
Governance
GDP
Unemployment
Financial leverage
Independent Variables
Dependent Variables
Female board between 1 to 20%‎
Female board between 21 to 50%‎
Female board more than 50%‎
Sustainable Disclosure
Gender Diversity
Control Variables: Bank specific
Environmental disclosure
Corporate social disclosure
Governance disclosure
Control Variables: Macroeconomic
Amina Mohamed Buallay

9. Methodology ‎7951‎ Observations ‎2116‎ Listed banks
Pooled Data
10 Years ( )
‎2116‎
Listed banks
‎7951‎
Observations
Methodology
Top 100 Oil Producer Countries
Amina Mohamed Buallay

10. Data and Model Validity
Normality
Shapiro–Wilk/ Kolmogorov–Smirnov
Collinearity
VIF test
Autocorrelation
Durbin Watson test
Heteroscedasticity
Breusch-Pagan test
Stationarity
ADF/ Phillips–Perron
Amina Mohamed Buallay

11. Matt Rosenberg's Official Eight Regional Groupings of the World‎
Descriptive Results
Cross-Country Results
Matt Rosenberg's Official Eight Regional Groupings of the World‎
Governance Disclosure
Social Disclosure
Environmental Disclosure
Female Board
13.6%
1. Central America
2. Australia
3. Europe
Female Board
1. Australia
2. Europe
3.South America
ESG
Amina Mohamed Buallay

12. Advanced Descriptive Results
Female member is between 21 to 50%, the ESG mean is higher.
The ESG and gender diversity mean is better in banks that are located in countries ranking (26 to 75) in oil production.
The ESG and gender diversity mean is better in non OPEC countries.
The ESG and gender diversity mean is better in low financial leverage banks and high asset size.
Amina Mohamed Buallay

13. Empirical Results
Female board is a granger cause of corporate governance disclosure
The correlation coefficients of board diversity indicates significant positive associations at 1% level with all ESG indicators.
The results reveal that Environmental, Social and Governance models have high statistical significance and high explanatory power
Causality
Test
Correlation
Test F-
Test
Amina Mohamed Buallay

14. Regression Results Environmental Disclosure
Female board between 21 to 50% (+)
Social Disclosure
Governance Disclosure
Female board between 1 to 20% (+)
ESG Score
Regression Results
In line with the Resource Dependence Theory, appointing female directors may enhance company’s ESG as female directors may bring diverse viewpoints , knowledge and experience to the board, thus enhancing the sustainable disclosure.
Moreover, the Stakeholder- Agent theory claims that more diversity in board will enhance the ability to disclose more information about the company, preventing it from disclosing self-serving information which negatively affect the performance of the company.
Amina Mohamed Buallay

15. Conclusion
Recommendation
As noted from the results the board gender diversity is weak; therefore, we recommend the banks to pay more attention to board gender diversity as a contributor toward efficient sustainable disclosure.
Future Research
As ‎corporate governance is an interdisciplinary field, ‎we suggest that future research has to undertake in the sustainable ‎performance nexus with governance practices such as (board independency, board size .. etc) which is supporting the field of governance and sustainability.
Limitation
The absence of literature offered the sustainable ‎reporting has associated with gender diversity. ‎
The study use one sector (Financial sector) and ignored others.
Amina Mohamed Buallay