Impact of corporate governance mechanisms on digitalization disclosure: the moderating effect of CEO duality

This paper investigates the impact of Corporate Governance mechanisms (gender board diversity, independent board directors, and the presence of a CSR/Sustainability Committee) on the level of digitalization disclosure, including whether CEO duality moderates this relationship. An international sample of 323 listed and unlisted non-financial companies, collected by the Integrated Reporting Example Database for the period 2017-2022, was analysed. The findings show a positive relationship between the board's gender diversity, board independence, the presence of the CSR/Sustainability Committee, and the level of digitalization disclosure. Additionally, the results suggest that CEO duality plays a complex moderating role in the relationship between governance variables and digitalization disclosure. While it limits the effectiveness of gender diversity and the presence of a CSR/sustainability committee on the board, it appears to have a non-significant effect on independent directors. This study significantly advances our theoretical knowledge of the complex relationship between Corporate Governance and digitalization, filling a gap in existing literature. This research provides practical insights by informing companies on how to improve their governance and digitalization plans. Better governance and the right application of digital technologies will enable corporate leaders to improve transparency, accountability, and effectiveness.