Board Composition and Greenwashing: Does Managerial Ownership Matter?

Authors

  • Putri Ramadhani Universitas Sebelas Maret, Surakarta, Indonesia
  • Rahmawati Rahmawati Universitas Sebelas Maret, Surakarta, Indonesia
  • Junaid M. Shaikh University Technology Brunei, Bandar Seri Begawan, Brunei
  • Sri Murni Universitas Sebelas Maret, Surakarta, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i3.980

Keywords:

Board Size, Gender Diversity, Greenwashing, Managerial Ownership, Two-Tier Context

Abstract

Awareness of environmental issues has become a focus for all parties. United Nations has focused on sustainability, and Indonesia has joined in supporting efforts to address it. This has led the Indonesian government to issue regulations requiring companies to participate in sustainability initiatives and report on them. Many have submitted sustainability reports, yet numerous companies still receive low ratings from the Ministry of Environment regarding their concrete actions on sustainability. This may indicate greenwashing. To address this issue, effective corporate governance is necessary, particularly through board size and board gender diversity. The objective of this study is to analyze the influence of board size and board diversity on greenwashing, with managerial ownership serving as a moderator. The research method used in this study is quantitative research. The research subjects are companies listed on the Indonesia Stock Exchange that employ a two-tier board structure, dividing the board into the board of directors and the board of commissioners. The results of this study indicate that neither the size of the board of directors nor that of the board of commissioners influences greenwashing. Gender diversity among board directors and commissioners reduces greenwashing. Managerial ownership only strengthens the influence of board diversity on greenwashing.

References

Akermi, A., & Amar, A. Ben. (2025). Managerial Ownership , Audit Quality , and Carbon Performance : Does Good Governance Make a Difference ? International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-07-2025-0724

Annisa Putri, A. (2024). Laporan Berkelanjutan Bukti Komitmen ESG Perusahaan. https://katadata.co.id/infografik/66cc213dd3613/laporan-berkelanjutan-bukti-komitmen-esg-perusahaan

Areneke, G., Adegbite, E., Tunyi, A., & Hussain, T. (2023). Female directorship and ethical corporate governance disclosure practices in highly patriarchal contexts. Journal of Business Research, 164(May), 114028. https://doi.org/10.1016/j.jbusres.2023.114028

Arifah, S., Probohudono, A. N., , Rahmawati, Honggowati, S., & Setiorini, K. R. S. (2023). Performance In Soe Two Tiers Board System Based On The Implication From Good Corporate Governance And Tunneling Or Propping Through Related. Journal of Namibian Studies, 33, 991–1015. https://doi.org/0.59670/jns.v33i.548

Astami, E., Pramono, A. J., Rusmin, R., Cahaya, F. R., & Soobaroyen, T. (2024). Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context. Journal of International Accounting, Auditing and Taxation, 56(June), 100638. https://doi.org/10.1016/j.intaccaudtax.2024.100638

Report on The Observance of Standards and Codes (ROSC) Republic of Indonesia, 1 (2005). https://doi.org/http://documents.worldbank.org/curated/en/688641468041689906

Cersosimo, C., & Colasanti, N. (2025). Board Size and Financial Performance as a Driver for Social Innovation : Evidence from Italian Local State ‑ Owned Enterprises. 1–19. https://doi.org/https://doi.org/10.3390/ admsci15070247

Committee, I. (2024). Indonesia RE International Conference (IIC) 2024 Accelerating Tranformation in Insurance Industry. https://www.indonesiare.co.id/uploads/2025/09/14a9188bf0462e77b71319eec80da76a_8df9a1a9ae79f33d92bd1b356204032e.pdf?utm_source=chatgpt.com

Dah, M. A., Elgammal, W., Kchouri, B., & Marrouche, A. (2025). International Review of Financial Analysis Do female CEOs lead more ethical firms ? ESG and corporate impact. International Review of Financial Analysis, 105(May), 104408. https://doi.org/10.1016/j.irfa.2025.104408

Donaldson, T., & Preston, L. E. E. E. (1995). The Stakeholder Theory of the Corporation : Concepts , Evidence , and Implications. 20(1), 65–91.

Ferrón Vílchez, V., Valero-Gil, J., & Perales, I. S. (2020). How does greenwashing influence managers ’ decision ‐ making ? An experimental approach under stakeholder view. Corporate Social Responsibility and Environmental Managemen, 28(2), 860–880. https://doi.org/10.1002/csr.2095

Francis, Trisnawati, E., & Sriwati. (2025). Influence of Managerial Ownership , Board Independence , and Leverage on Financial Performance in the Financial Sector. E-Jurnal Akuntansi, 35(2), 398–415. https://doi.org/10.24843/EJA.2025.v35.i02.p07

Freeman, R. E. (1984). Stategic Management: A Stakeholder Approach. Pitman Publishing Inc.

Ghazalat, A. (2025). Board Characteristics , Board Committees And Voluntary Disclosure As A Catalyst Of Investment Opportunities. Discover Sustainability, 6(640). https://doi.org/https://doi.org/10.1007/s43621-025-01434-z

Ghitti, M., Gianfrate, G., & Palma, L. (2024). The agency of greenwashing. In Journal of Management and Governance (Vol. 28, Issue 3). Springer US. https://doi.org/10.1007/s10997-023-09683-8

Houssam, N., Ibrahiem, D. M., Sucharita, S., El-Aasar, K. M., Esily, R. R., & Sethi, N. (2023). Assessing the role of green economy on sustainable development in developing countries. Heliyon, 9(6), e17306. https://doi.org/10.1016/j.heliyon.2023.e17306

Indy, L. A., Uzliawati, L., & Mulyasari, W. (2022). The Effect of Managerial Ownership and Institutional Ownership on Sustainability Reporting and Their Impact on Earning Management. Journal of Applied Business, Taxation and Economics Research, 1(3), 243–256. https://doi.org/10.54408/jabter.v1i3.48

Issa, A., Yousef, H., Bakry, A., Hanaysha, J. R., & Sahyouni, A. (2021). Does the board diversity impact bank performance in the MENA countries? A multilevel study. Corporate Governance (Bingley), 21(5), 865–891. https://doi.org/10.1108/CG-06-2020-0222

Jamil, N. N., & Wahyuni, E. T. (2025). Greenwashing and board effectiveness : Moderating role of CSR committee from Malaysia evidence. 9(5), 1508–1521. https://doi.org/10.55214/25768484.v9i5.7187

Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X

Kementerian Investasi dan Hilirisaasi. (2022). Indonesia Sustainable Investment Guideline. Badan Koordinasi Penanaman Modal.

Liu, M., Wang, Y., & Yin, Z. (2026). How does government open data suppress corporate ESG Greenwashing ? Evidence from the dual mechanisms of financing constraints and external monitoring. International Review of Economics and Finance, 108(December 2025), 105185. https://doi.org/10.1016/j.iref.2026.105185

Liu, Y. (2023). Managerial ownership and the effectiveness of internal control. Finance Research Letters, 58(PA), 104339. https://doi.org/10.1016/j.frl.2023.104339

Ma, Y., & Ahmad, M. I. (2024). Do board characteristics impact greenwashing? Moderating role of CSR committee. Heliyon, 10(20), e38743. https://doi.org/10.1016/j.heliyon.2024.e38743

Nashirudin, M., & Rosadi, S. (2025). Do Board Characteristics and Innovation Impact Bank Performance? Evidence from Conventional and Islamic Banks in Indonesia. Journal of King Abdulaziz University, Islamic Economics, 38(1), 27–48. https://doi.org/10.4197/Islec.38-1.2

Nepal, R., Deng, Y., Dong, K., & Goutte, S. (2025). Does executive gender diversity culture inhibit corporate greenwashing behavior? The effect of informal institutions. International Review of Financial Analysis, 97(December 2024). https://doi.org/10.1016/j.irfa.2024.103888

Ongsakul, V., Jiraporn, P., Chintrakarn, P., & Chatjuthamard, P. (2025). Climate change exposure , oil price uncertainty , and managerial ownership : Insights from textual analysis. Energy and Climate Change, 6(March), 100187. https://doi.org/10.1016/j.egycc.2025.100187

Otoritas Jasa Keuangan. (2017). POJK No. 51 /POJK.03/2017 tentang penerapan keuangan berkelanjutan bagi lembaga jasa keuangan, emiten, dan perusahaan publik. 1–15.

Pemerintah Indonesia. (2021). Peraturan Menteri Lingkungan Hidup dan Kehutanan Republik Indonesia Nomor 1 Tahun 2021 tentang Program Penilaian Peringkat Kinerja Perusahaan dalam Pengelolaan Lingkungan Hidup. 1–312.

Pemerintah Indonesia. (2024). Keputusan Menteri Lingkungan Hidup dan Kehutanan Republik Indonesia Nomor 546 Tahun 2024.

Poiriazi, E., Zournatzidou, G., & Konteos, G. (2025). Do Board Characteristics Matter with Greenwashing? An Investigation in the Financial Sector with the Integration of Entropy Weight and TOPSIS Multicriteria Decision-Making Methods. Risks, 13(4). https://doi.org/10.3390/risks13040064

Quoc Trung, N. K. (2022). Board of directors characteristics affect commercial banks’ performance–evidence in Vietnam. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2060164

Satrio, A. B. (2026). Innovation and Green Development Gender diversity , governance innovation , and sustainable corporate practices : Evidence from the two-tier board system. Innovation and Green Development, 5(1), 100331. https://doi.org/10.1016/j.igd.2026.100331

Sensharma, S., Sinha, M., & Sharma, D. (2022). Do Indian Firms Engage in Greenwashing? Aabfj, 16(5), 67–88. https://doi.org/https://doi.org/10.14453/aabfj.v16i5.06

Syahni, D. (2021). Operasi PT Antam Cemari Pesisir Halmahera Timur. Mongbay. https://mongabay.co.id/2021/05/04/tambang-antam-cemari-pesisir-halmahera-timur/

Thendean, C. A., & Meita, I. (2019). Pengaruh Ukuran Dewan Komisaris dan Ukuran Dewan Direksi terhadap Nilai Perusahaan dengan Kepemilikan Institusional sebagai Variabel Moderasi. Jurnal Ekonomi, Manajemen, Akuntansi, 21(2), 152–162. https://doi.org/10.34209/equ.v21i2.641

Treepongkaruna, S., Kyaw, K., & Jiraporn, P. (2024). ESG Controversies and Corporate Governance : Evidence from Board Size. Business Strategy and The Environment, 33(January), 4218–4232. https://doi.org/10.1002/bse.3697

United Nations. (2023). 2030 Agenda and Indigenous Peoples. https://social.desa.un.org/issues/indigenous-peoples/2030-agenda-and-indigenous-peoples/2030-agenda-and-indigenous-peoples

Wei, M., Wang, Y., & Giamporcaro, S. (2024). The impact of ownership structure on environmental information disclosure: Evidence from China. Journal of Environmental Management, 352(July 2023). https://doi.org/10.1016/j.jenvman.2024.120100

Wibowo, S. A. (2025). Penggunaan EViews dalam Pengujian Data Panel untuk Penelitian Akuntansi : Pendekatan Konseptual dan Aplikatif. Jurnal Riviu Akuntansi Dan Bisnis Indonesia, 9(1). https://doi.org/10.18196/rabin.v9i1.26898

Xu, X., Lu, X., & Meng, F. (2026). Digital Regulation and Environmental Performance : Evidence from Smart Environmental Monitoring Platforms in China. March, 1–18. https://doi.org/10.1177/21582440251409073

Yang, Z., Thu, T., Nguyen, H., Nguyen, H. N., Thuy, T., Nguyen, N., & Cao, T. T. (2020). Greenwashing Behaviours : Causes , Taxonomy And Consequences Based On A Systematic. Journal of Business Economics and Management, 21(5), 1486–1507. https://doi.org/https://doi.org/10.3846/jbem.2020.13225

Yanto, H., Hajawiyah, A., Baroroh, N., & Arham, A. F. Bin. (2024). Disclosures in integrated reporting in Indonesia: Do corporate governance and ownership structures matter? International Journal of Management and Sustainability, 13(4), 949–962. https://doi.org/10.18488/11.v13i4.3958

Yu, E. P. yi, Luu, B. Van, & Chen, C. H. (2020). Greenwashing in environmental, social and governance disclosures. Research in International Business and Finance, 52(January), 101192. https://doi.org/10.1016/j.ribaf.2020.101192

Zahid, R. M. A., Maqsood, U. S., Irshad, S., & Khan, M. K. (2025). The role of women on board in combatting greenwashing: A new perspective on environmental performance. Business Ethics, the Environment and Responsibility, 34(1), 121–136. https://doi.org/10.1111/beer.12607

Zhong, S., Su, B., He, J., & Ng, T. S. (2025). Moving towards a net-zero emissions economy in Indonesia. Science of the Total Environment, 1001(March), 180542. https://doi.org/10.1016/j.scitotenv.2025.180542

Zhu, N., Nii, E., Aryee, T., Osei, A., Wiredu, I., Zakari, A., & Yayra, S. (2024). Addressing Environment , Social and Governance ( ESG ) Investment in China : Does Board Composition and Financing Decision Matter ? Heliyon, 10(10), e30783. https://doi.org/10.1016/j.heliyon.2024.e30783

Downloads

Published

2026-08-24

How to Cite

Ramadhani, P., Rahmawati, R., Shaikh, J. M., & Murni, S. (2026). Board Composition and Greenwashing: Does Managerial Ownership Matter?. Greenation International Journal of Economics and Accounting, 4(3), 840–853. https://doi.org/10.38035/gijea.v4i3.980

Issue

Vol. 4 No. 3 (2026): Greenation International Journal of Economics and Accounting (July - August 2026)

Section

Articles

License

Copyright (c) 2026 Putri Ramadhani, Rahmawati Rahmawati, Junaid M. Shaikh, Sri Murni

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright :

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. Copyright in each article belongs to the author.
  2. The author acknowledges that the GIJEA has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
  3. Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJEA.