Board Networks and Corporate Transparency: How Independent Director Centrality Drives ESG Disclosure Quality

ABSTRACT This study explores how independent director network centrality influences ESG disclosure quality and how this relationship is shaped by market competition and media attention. Based on a panel dataset of S&P 500 firms for the period 2015–2023, our results highlight that independent director network centrality is positively associated with ESG disclosure quality. This effect is significantly strengthened in more competitive industries and among firms receiving greater media attention. Heterogeneity analyses further reveal that the network effect is more pronounced in non‐family firms, larger firms, ESG‐sensitive industries, and highly regulated sectors. Our findings highlight the interconnectedness of board governance attributes, suggesting that a more comprehensive understanding of ESG disclosure outcomes may require examining director characteristics in conjunction with broader governance contexts. These findings will help nomination committees, institutional investors, and regulators refine governance recommendations and assist firms in developing effective strategies regarding board composition, director network positioning, and ESG oversight capacity.