Corporate governance, law, culture, environmental performance and CSR disclosure: A global perspective☆

Do institutional contingencies matter for green investment?-An institution based view of Chinese listed companies

Current research in the field of environmental management has placed significant emphasis on understanding the reasons behind varying organizational responses to environmental responsibilities. Governance scholars emphasize the central role of institutional factors in shaping environmental responsibilities, primarily due to the substantial influence exerted by regulatory institutions. Drawing on institutional theory, we investigate how sub-national institutional factors impact a firm's green investment intensity and explore their moderating influence on the relationship between green investment and a firm's financial performance. Using a database of Chinese listed companies from 2012 to 2019, this study employs fixed effect model as a baseline regression. Our analysis demonstrates that sub-national institutions, such as state-owned enterprises (SOEs), regional development, and cross-listing, have significant and positive impact on corporate green investment. Our study further provide an evidence that green investment significantly improve firms' financial performance. Moreover, the positive effect of green investment on financial performance is stronger in SOEs and in firms of developed regions as compared to their counterparts, and weaker in cross listed firms than those of non-cross listed peers. Our study suggest that subnational institutions play an imperative role in improving environmental quality and financial performance by promoting corporate green investment. To make sure that our findings remain robust to endogeneity, we applied generalized method of moments (GMM) and propensity score matching (PSM) method. Our findings further provide implications for emerging economies with similar shareholding patterns and unbalanced regional development.

Microplastics in aquatic bodies: Assessing the role of governance mechanisms in industrial wastewater management

The purpose of this research is to examine the association between corporate governance mechanisms (board independence, board gender diversity, Chief Executive Officer (CEO) duality, and environmental, social and governance (ESG) linked compensation) and wastewater recycling as a strategy for managing the flow of microplastics into the aquatic environment. The study analysed an international sample of top companies on the Forbes 500 list over a 15-year period during the millennium development goals (MDGs) and sustainable development goals (SDGs) eras. Multiple regression analysis with fixed effect OLS, two-stage least squares regression, propensity score matching, and logistic regression were applied in the data analysis. The results show that, at the aggregate level, board gender diversity is positively associated with wastewater recycling, whilst CEO duality has a significant negative impact. When disaggregated into industries, board gender diversity is positively associated with wastewater recycling in high-polluting and low-polluting industries. In relation to the MDGs/SDGs eras, the impact of board gender diversity is more significant in the MDGs era than in the SDGs era. At the geographical region level, CEO duality has a significant negative impact on wastewater management in the America and Asia Pacific regions, whilst the effect of CEO duality is significantly positive in the Western Europe region. We also find that a minimum of two female directors is required to improve wastewater management practice. The study concludes that whilst board gender diversity is a notable driver of wastewater management, CEO duality diminishes the commitment of multinational entities (MNEs) to addressing wastewater management issues. Our result is robust to (i) alternative measures of wastewater management, (ii) alternate sample composition, (iii) alternate method of data analysis, and (iv) endogeneity checks. The study contributes to the limited literature on waste management and the circular economy, particularly governance mechanisms' role in wastewater management in an international context.

Environmental disclosure practices in mixed ownership models: A study of Chinese private enterprises

Environmental information disclosure is critical avenue for stakeholders to gauge the fulfillment of corporate environmental responsibilities, as well as a key path for companies to gain social reputation and achieve sustainable development. To achieve both economic and social sustainability and improve the environmental information disclosure by private firms, this study delves into the impact mechanism and realization path of mixed ownership reform on environmental information disclosure among Chinese private enterprises listed between 2010 and 2020. Utilizing a panel fixed effect model, we scrutinize the interplay between state capital involvement and the disclosure of environmental information by private enterprises. Our findings reveal that state capital involvement may encourage private enterprises to disclose environmental information through resource allocation and governance improvements. The higher the shareholding ratio of state-owned participating shareholders, the more it helps private firms to disclose environmental information. State-owned shareholders play a pivotal role in the appointment of supervisors, directors, and executives, effectively improving corporate governance mechanisms and positively moderates how private companies with state-owned capital participate in disclosing environmental information. Moreover, the magnitude of media coverage and the public opinion pressure faced by private enterprises further amplify the influence of state-owned capital involvement on environmental information disclosure. Additionally, our research reveals that corporate profitability partially interplays with the effects of state-owned capital disclosure of environmental information by private companies. According to the research results, we recommend that the government proactively promote mixed ownership reform with private enterprises as the main participants, fully leveraging the resource advantages and influence of state-owned capital. At the same time, it is imperative to strengthen the governance effect of internal state-owned shareholders and external public opinion supervision in private enterprises. Enhancing profitability is also identified as a key driver for private enterprises to engage in more robust environmental information disclosure practices.

Study on the influence of Chinese traditional culture on corporate environmental responsibility

In accordance with the theory of informal institutions, culture exerts a crucial influence on the enactment of corporate social responsibility. Based on the two core variables of Chinese traditional culture and corporate environmental responsibility, we designed a panel data model to investigate the impact of Chinese traditional culture on corporate environmental responsibility and its heterogeneity. The findings indicate the following: 1) Chinese traditional culture can promote the performance of corporate environmental responsibility. 2) Chinese traditional culture has a heterogeneous influence on the environmental responsibility of enterprises that depends on the ownership difference of enterprises; that is, the influence of traditional culture on the environmental responsibility of state-owned enterprises is stronger than that of non-state-owned enterprises. 3) Chinese traditional culture has a heterogeneous influence on the environmental responsibility of enterprises according to the difference in industrial pollution levels; that is, traditional culture has a positive correlation with the environmental responsibility of enterprises in heavily polluting industries and a negative correlation with non-heavily polluting industries. 4) Chinese traditional culture has a heterogeneous influence on corporate environmental responsibility according to geographical differences; that is to say, traditional culture promotes the development of corporate environmental responsibility in the central and western regions, and vice versa in the eastern regions.

Corporate governance and carbon emissions performance: International evidence on curvilinear relationships

This study investigates the impact of corporate governance mechanisms (namely board meeting, board independence, board gender diversity, CEO duality, ESG-based compensation and ESG committee) on carbon emissions performance of multinational entities (MNEs). The study analysed international sample of 336 top MNEs operating in 42 non-financial industries from 32 countries over a 15-year period. Result shows that board gender diversity, CEO duality, and ESG committee are negatively associated with carbon emissions rate, whilst board independence and ESG-based compensation have significant positive impact. Whereas board gender diversity and CEO duality have significant negative impact on carbon emissions rate in carbon-intensive industries, the impact of board meeting, board independence and ESG-based compensation is significant and positive. In the non-carbon-intensive industries, board meeting, board gender diversity and CEO duality have significant negative impact on carbon emissions rate, whilst the impact of ESG-based compensation is positive. Further, there is a negative association between the millennium development goals (MDGs)/sustainable development goals (SDGs) era dichotomy and carbon emissions rate, implying that the United Nations agenda for sustainable development significantly affected carbon emissions performance of MNEs, with the SDGs era generally witnessing better carbon emissions management in comparison to the MDGs era in spite of the higher emissions level in the SDGs era. The study contributes to knowledge in several ways. First, it adds to the limited literature on the determinants of carbon emissions reduction within an international context. Second, the study addresses mixed result reported in prior studies. Third, the study adds to knowledge on the governance factors affecting carbon emissions performance in the MDGs and SDGs periods, thus providing evidence on progress MNEs are making towards addressing climate change challenges through carbon emissions management.

Mapping the environmental, social and governance literature: a bibliometric and content analysis

Purpose

This study aimed to quantify and map academic literature of ESG from a bibliometric perspective and to provide a comprehensive review of the recent literature published in the high-rated journal articles.

Design/methodology/approach

The study analyzed 867 and 388 documents from Scopus and Web of Science (WoS) data respectively using bibliometric analysis. Biblioshiny and VOSviewer software was used for performance analysis and science mapping respectively. Further, manual content analysis of the 190 research articles published in the last five years was conducted.

Findings

The results demonstrate that ESG is an emerging domain in the field of sustainable finance as the number of publications and total citations are showing an upward trend. The top two journals in terms of productivity are the Journal of Sustainable Finance and Investment and Business Strategy and the Environment. The highest number of publications are from the United States and George Serafeim is the most influential author in the ESG domain. Further, the result of cluster analysis of bibliographic coupling reveals four intellectual themes, (1) ESG investing; (2) ESG disclosures and Integrated Reporting; (3) ESG performance and firm value and (4) Corporate Governance and ESG performance. The content analysis of the 190 high-quality journal articles presents the current 11 areas of research in ESG. The impact of ESG on firm value and ESG investment are the prominent themes, and the effect of ESG on the cost of capital and ESG audit and assurance are the emerging themes in this domain.

Research limitations/implications

The keyword search is solely focusing on the theme of the study. Further, other keywords such as Corporate Social Responsibility and Corporate sustainability taken along with ESG may provide distinct results.

Practical implications

The study advances the understanding of the ESG domain by developing new possibilities to discover key research areas.

Originality/value

The present work provides a comprehensive and detailed bibliometric and content analysis of ESG literature. This study delineates the thorough literature review of journal articles published in the recent five years in high-rated journals.

Corporate governance mechanisms and corporate social responsibility disclosure: evidence from an emerging market

Purpose

This study aims to examine the relationship between corporate governance mechanisms, namely, board independence, board size and gender diversity, and the extent of corporate social responsibility (CSR) disclosure for companies listed on the Saudi stock exchange.

Design/methodology/approach

Data has been extracted from the annual reports of a sample of 67 companies listed on the Saudi Stock Exchange during the period 2014–2019. Three panel data techniques have been used to investigate the association between governance variables and the extent of CSR disclosures after statistically controlling the effects of the size, leverage and profitability of the companies.

Findings

The results of this study indicate that board independence and board size have positive and significant associations with the extent of CSR disclosures. However, the study finds that the percentage of female representation on the board has a positive effect on the extent of CSR disclosure, but that this effect is not statistically significant.

Research limitations/implications

The results of this study are limited to the context in which the study was conducted, which is the Saudi stock exchange during the period 2014–2019, and then the generalization of the results may be limited to listed companies operating in a similar social and economic context. Also, the data sources in this study were limited to the annual reports of companies only.

Practical implications

The results of this study provide some indications for policymakers in Saudi Arabia to take what is necessary to promote corporate governance mechanisms and, therefore, enhance CSR practices.

Originality/value

This study contributes to the literature on CSR by providing empirical evidence on the impact of corporate governance mechanisms on the extent of CSR disclosure from one of the developing countries, which is Saudi Arabia.

Corporate Social Responsibility (CSR) Implementation: A Review and a Research Agenda Towards an Integrative Framework

In spite of accruing concerted scholarly and managerial interest since the 1950s in corporate social responsibility (CSR), its implementation is still a growing topic as most of it remains academically unexplored. As CSR continues to establish a stronger foothold in organizational strategies, understanding its implementation is needed for both academia and industry. In an attempt to respond to this need, we carry out a systematic review of 122 empirical studies on CSR implementation to provide a status quo of the literature and inform future scholars. We develop a research agenda in the form of an integrated framework of CSR implementation that pronounces its multi-dimensional and multi-level nature and provides a snapshot of the current literature status of CSR implementation. Future research avenues relating to multi-level studies, theoretically supported research models, developing economy settings, and more are recommended. Practitioners can also benefit through utilizing the holistic framework to attain a bird's eye view and proactively formulate and implement CSR strategies that can be facilitated by collaborations with CSR scholars and experts.

SUPPLEMENTARY INFORMATION

The online version contains supplementary material available at 10.1007/s10551-022-05047-8.

Corporate Competing Culture and Environmental Investment

Using Chinese listed companies as research setting, this paper constructs a measure of corporate competing culture through textual analysis on firms' management discussion and analysis (MD&A) disclosures, and examines the impact of corporate competing culture on environmental investment. The results show that competing culture has a significant and positive impact on firms' environmental investment, and the results remain robust to a battery of robustness tests. Moreover, the mediating analysis indicates that competing culture promotes corporate environmental investment through enhancing firms' internal control quality. Furthermore, the heterogeneity results show that the positive impact of corporate competing culture on environmental investment is more pronounced in firms with larger size, stronger corporate governance, in high-polluting industry, and located in less developed regions. Our findings shed light on the importance of corporate competing culture and provide practical implications for corporate sustainable development.

Improving the Environmental Footprint through Employees: A Case of Female Leaders from the Perspective of CSR

Environmental quality strongly depends on human behavior patterns. Many environmental challenges are rooted in human actions, and thus, it is believed that these problems can be reduced through the promotion of pro-environmental behaviors (PB). Owing to this reality, the current study aims to reduce the environmental footprint of a hospital by promoting its employees' environment-specific behavior via corporate social responsibility (CSR) and ethical leadership (EL). More importantly, the study also considered the role of female leaders in the proposed relationship. The current study collected the data from the respondents employed in different hospitals of a developing economy through a questionnaire (paper-pencil method). A total of 489 valid responses were collected, which were analyzed by employing the structural equation modeling (SEM) technique. As per the current study's findings, there is a positive relationship between CSR, while EL mediates between CSR and PB. Likewise, the moderating role of female leaders in the proposed relationship was more significant than that of male leaders. More specifically, the study's findings have considerable theoretical and practical implications, as it opens paths for researchers to further investigate the applicability of different dimensions of CSR and the role of gender in environmental sustainability. It provides insight to policymakers on how to restructure their CSR preferences, priorities on the environment, and gender differences.

Does financial performance moderate the relationship between board attributes and corporate social responsibility in French firms?

Purpose

The purpose of this paper is to study how board attributes impact corporate social responsibility (CSR). In particular, this paper aims to empirically examine the impact of financial performance on the relationship between board attributes and CSR. Board attributes such as board size, board independence, female board representation and CEO-chair duality are included.

Design/methodology/approach

This study uses panel data set of 200 French companies listed during 2007–2018 period. The direct and moderating effects were tested by using multiple regression technique.

Findings

The results indicate that significant direct relationships exist among board attributes and CSR. Board independence and female board representation are positively linked with CSR. However, board size and CEO duality are negatively associated with CSR. Findings show, also, that corporate financial performance accentuates significantly the effect of board size, board independence and CEO-duality on CSR, but does not moderate the relationship between female board representation and CSR.

Practical implications

The findings may be of interest to different stakeholders and policy-makers and regulatory bodies interested in enhancing CG initiatives to strengthen corporate social responsibility because it suggests thinking about implementing a broadly accepted framework of good CG practices to meet the demand for greater transparency and accountability. As an extension to this research, further study can examine the impact of ownership structure and audit quality on CSR issues.

Originality/value

This study extends the dynamic relationship between CG mechanisms and CSR by offering new evidence on how corporate financial moderates this relationship.