Environmental performance and firm performance in Europe
Other authors
Publication date
2024-07-01Alternative title
The moderating role of board governance
ISSN
1535-3966
Abstract
This research presents novel insights into the relationship between environmental performance and firm performance, focusing on the moderating role of board governance. Unlike the single-dimensional examination in previous studies, we examine five board variables collectively in our moderator analysis. Employing ordinary least squares regression and a series of robustness tests, we investigate 582 European listed firms across various industries from 2016 to 2021. Our findings reveal a positive influence of environmental performance on firm performance, measured by Tobin's Q and ROA. Furthermore, we find that board independence, gender diversity and audit committee independence moderate this relationship. To address potential endogeneity issues, we employ GMM modelling. This study significantly contributes to the environmental performance and firm performance literature by offering evidence on the moderating role of board mechanisms. Moreover, it offers valuable insights for policymakers and practitioners, highlighting the need to monitor corporate boards for improved environmental and financial outcomes.
Document Type
Article
Document version
Published version
Language
English
Subject (CDU)
504 - Threats to the environment
Keywords
board governance
environmental performance
Europe
firm performance
Pages
18 p.
Publisher
Wiley
Is part of
Corporate Social Responsibility and Environmental Management. 2024;31(6):5109-6525
This item appears in the following Collection(s)
Rights
© L'autor/a
Except where otherwise noted, this item's license is described as http://creativecommons.org/licenses/by-nc-nd/4.0/