Strategic climate change disclosures across temporal, directional, and thematic dimensions: Board dynamics and role...

Strategic climate change disclosure (SCCD) refers to climate-related reporting that communicates how firms prepare for, respond to, and strategically position themselves around climate risks and long-term sustainability goals. This study examines how board characteristics shape SCCD across three dimensions- thematic (operational vs. strategic focus), directional (direct vs. indirect impacts), and temporal (short-vs. long-term orientation). This multidimensional structure offers a more precise alternative to conventional aggregate disclosure measures. Using panel data from environmentally sensitive firms in high-impact sectors listed on the Dhaka Stock Exchange (2014-2022), SCCD is measured using a GRI-based index. To strengthen causal inference, we address endogeneity through fixed effects, lagged models, entropy balancing, moderation analysis, and two-stage least squares models. Findings reveal consistent patterns across the three SCCD dimensions. Board size, foreign directors, and audit committees enhance SCCD by strengthening strategic orientation and broadening direct and indirect reporting. Independent directors influence strategic and indirect disclosures, reflecting their monitoring function. In contrast, gender diversity and board meeting frequency are negatively associated with SCCD outcomes aligned with tokenistic appointments and compliance-driven oversight in emerging-market settings. However, both relationships become positive when institutional ownership is higher, indicating that ownership structures can amplify governance effectiveness. Overall, the study advances a novel multidimensional SCCD framework and provides robust evidence on how governance mechanisms and ownership dynamics jointly shape the depth, direction, and strategic focus of climate reporting. The findings offer practical guidance for regulators, investors, and boards seeking to enhance climate disclosure and support long-term environmental objectives.