This paper examines the effect of EDQ on firm financial performance and the moderating role of board structure. Based on the agency, legitimacy and resource dependence theories, this study contends that good environmental disclosure can improve internal performance of firms, for which an efficient board structure provides evidence. Quality of environmental disclosure is evaluated based on content analysis of index using a panel data representing industrial firms that are listed in the Amman Stock Exchange from 2020–2024. The financial performance is further evaluated through three supplementary instruments, including market-based performance (Tobin’s Q), operating performance (ROA), and profitability-based performance (ROE). Board structure is measured as a second-order factor using an index made up of board education, gender diversity, and size. The hypotheses of the study are tested using panel regression based on fixed effects. The findings show that the environmental disclosure quality influences significantly and positively on operational (ROA) and profitability-based (ROE) financial performance, but environmentally friendly companies do not achieve a significant influence in terms of market-based performance (Tobin’s Q). The broad structure moderates the relationship between environmental disclosure and both ROA and ROE in a positive way which is not applicable to market-based performance.  These results contribute to the literature of environmental accounting and corporate governance by demonstrating that the financial benefits of environmental disclosure are accomplished firstly through internal efficiency and profitability rather than instantaneous market evaluation especially in the context of emerging markets. There are implications for managers offered by study as well as for policy makers and board of directors who pursue to enforce the performance of firms by enhancing environmental disclosure and the practices of effective governance.