Impact of Corporate Governance Attributes on Environmental Sustainability

Reporting: A Study on Textile Sector of Bangladesh.

Course Name: Advance Business Research

Course Code: BUS-05123

SUBMITTED BY
Md. Ohiduzzaman Anik
Registration No: 2018731028(M1)
Session: 2022-23
Master’s of Business Administration
1st Year,1st Semester
Department of Business Administration
Shahjalal University of Science and Technology, Sylhet-3114
 Research Objectives

The main objective of the research is to investigate the impact of Corporate Governance attributes on the
Environmental Sustainability Reporting of DSE-listed textile companies in Bangladesh.

The specific objectives of the research are:

 To examine how Corporate Governance practice impacts material sustainability reporting.

 To investigate how Corporate Governance practice impacts energy sustainability reporting.
 To know how Corporate Governance practice impacts emissions sustainability reporting.
 Literature Review &Research Hypothesis Development
Here researcher has decided to present a review of the literature on the following aspects:
1. Theoretical literature review
Agency Theory (Jensen and Meckling,1976)
Stakeholder Theory( Dr.F.Edward Freeman,1984)
Resource Dependency Theory(Jeffrey Pfeffer & Salancik, 1978)
2. Empirical literature review

H1: There is a significant relationship between Corporate Governance and Material Sustainability Reporting.

H2: There is a significant relationship between Corporate Governance and Energy Sustainability Reporting.

H3: There is a significant relationship between Corporate Governance and Emissions Sustainability Reporting.

H4: There is a significant relationship between Corporate Governance and Environmental Sustainability
Reporting.
 Methodology of the research
Data Source
 Thirty active and listed textile companies out of 58 working populations are chosen
based on data availability for the period (2017-18) to (2021-22).
 The sample companies audited yearly financial statements as the source of secondary data.
Research Techniques and Tools
Logistic Regression Model
Statistical Tool STATA
Research model
The model especially took the form:
Material it =β0+β1CG+β2C-SIZE+ β3ROE+ β4ROA+ β5DPR+ β6ROIC+ β7TQ+ β8D2E+ β9DR+Uit
Energy it =β0+β1CG+β2C-SIZE+ β3ROE+ β4ROA+ β5DPR+ β6ROIC+ β7TQ+ β8D2E+ β9DR+Uit
Emissions it =β0+β1CG+β2C-SIZE+ β3ROE+ β4ROA+ β5DPR+ β6ROIC+ β7TQ+ β8D2E+β9DR+Uit
Environmental Sustainability Reporting it =β0+β1CG+β2C-SIZE+ β3ROE+ β4ROA+ β5DPR+ β6ROIC+
β7TQ+ β8D2E+ β9DR+Uit
 Hypotheses Results Tool

H1: There is a significant relationship between Corporate Governance and Material Accepted Regression
Sustainability Reporting.

H2: There is a significant relationship between Corporate Governance and Energy Accepted Regression
Sustainability Reporting.

H3: There is a significant relationship between Corporate Governance and Rejected Regression
Emissions Sustainability Reporting.

H4: There is a significant relationship between Corporate Governance and Accepted Regression
Environmental Sustainability Reporting.
 Key Findings

1. According to a logistic regression model, corporate governance has a substantial and favorable influence
on environmental sustainability reporting at a 5% significant level.

2. At the 1% significance level, corporate governance also significantly and favourably affects material
sustainability reporting.

3. At a 1% significant level, corporate governance also significantly and favorably influences energy
sustainability reporting.

4. The most exciting finding in my research is that there is no apparent relationship between corporate
governance and carbon sustainability reporting.
 Contribution of the Study

 The result of the current study can contribute to future research on corporate governance, especially in
firms' environmental sustainability reporting.
 Practically, for top managers of textile companies: as a guide for assessing the impact of C.G. issues on
sustainability reporting decisions made by top-level managers of textile companies.
 In general, the outcomes of this study will provide an understanding of the C.G. factors that affect the
ESR of the textile industry in DSE.
 This study contributes to the literature by illuminating the significant connections between some corporate
governance measures and environmental sustainability reporting choices of listed textile firms in DSE.
Thank you so much