How board diversity shapes corporate disclosure under varying institutional quality: The case of an emerging economy.

This study examines how board diversity influences corporate disclosure quality in an emerging transitional economy, with a particular focus on the moderating role of institutional quality. Using panel data from 152 non-financial listed firms in Vietnam over the period 2014–2023, we employ a random-effects logistic regression model to analyze the effects of relation-oriented, task-oriented, and overall board diversity on corporate governance, financial risk, and environmental, social, and governance (ESG) disclosure. The results reveal that board diversity is negatively associated with disclosure quality, particularly in corporate governance and ESG dimensions, suggesting that diversity may hinder coordination and decision-making in weak institutional environments. However, institutional quality, measured by the Provincial Competitiveness Index (PCI), significantly mitigates these negative effects and enables diverse boards to contribute positively to disclosure practices. These findings highlight the context-dependent nature of board diversity and underscore the importance of institutional conditions in shaping governance outcomes (Klapper & Love, 2004; Labkir et al., 2026). The study contributes to the literature by providing new evidence from Vietnam and offers policy implications for improving board effectiveness and disclosure transparency in emerging markets.