Measuring the impact of corporate governance on non-financial reporting in the top HEIs worldwide

Mahalaxmi Adhikariparajuli, Mehul Chhatbar, Abeer Hassan

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Abstract

Purpose – This study aims to measure the relationship between corporate governance and non-financial reporting (NFR) in higher education institutions (HEIs). Board effectiveness, student engagement, audit quality, Vice-Chancellor (VC) pay, and VC gender are targeted for analysis.Design/methodology/approach – This study is based on content analysis. We used the EU NFR Directive (2014/95/EU) to measure NFR. This includes environmental, corporate social responsibility, human rights, corporate board effectiveness, and corruption and bribery. Cross-sectional data was collected form 89 HEIs worldwide across 15 different countries over three years. Content analysis, the weighted scoring method and panel data analysis are employed to obtain the results.Findings – Through a neo-institutional theoretical lens, this study provides a broader understanding of NFR content disclosure practices within HEIs. Our findings reveal that the audit quality, VC pay and VC gender are significantly and positively associated with NFR content disclosure. However, board effectiveness has a significant negative impact on NFR content disclosure. More interestingly, the findings reveal that student engagement has an insignificant association with NFR content disclosure and there significant difference on the level of NFR content disclosure across universities situated in the different geographical region such as the USA, Australia, the UK and EU, Asia and Canada. The findings have important implications for regulators and policymakers. The evidence appears to be robust when controlling for possible endogeneities.

Originality/value – The study contributes to the literature on corporate non-financial disclosure as it provides new insights of corporate governance mechanism and NFR disclosure within HEIs.
Original languageEnglish
JournalMeditari Accountancy Research
Early online date12 May 2022
DOIs
Publication statusE-pub ahead of print - 12 May 2022

Keywords

  • Non-financial reporting
  • Higher education institutions
  • Neo-institutional theory
  • Panel data
  • Corporate governance

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