Environmental performance and firm performance in Europe: The moderating role of board governance

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 analys...

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Detalles Bibliográficos
Autores: Dohrmann, Marcel, Martinez-Blasco, Monica, Moring, Andreas, Cuadros, Jordi
Tipo de recurso: artículo
Fecha de publicación:2024
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:20.500.14342/4654
Acceso en línea:http://hdl.handle.net/20.500.14342/4654
https://doi.org/10.1002/csr.2898
Access Level:acceso abierto
Palabra clave:board governance
environmental performance
Europe
firm performance
504
Descripción
Sumario: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.