Corporate governance pillars and business sustainability: does stakeholder engagement matter?

Date

2021-02-22

Advisors

Journal Title

Journal ISSN

ISSN

1741-3591

Volume Title

Publisher

Springer

Type

Article

Peer reviewed

Yes

Abstract

This study extends the existing work on corporate governance and business sustainability by exploring corporate governance pillars comprising board functions, structure, strategy, compensation and shareholder rights utilizing data from listed S&P 500 firms. Using panel fixed effects and two-step GMM, we discovered that environmental, social and financial sustainability dimensions of the business sustainability are impacted positively by board functions and board structure. Our findings further reveal that low stakeholder engagement adversely impacts companies’ bottom-line performance. The results are robust to outliers, model specifications, statistical estimations and alternative measures of performance. Most importantly, the inferences from the moderating result suggest stakeholder engagement as a strategic approach to improve performance. The study is relevant for business sustainability practitioners and policy makers in advancing principles of corporate governance to promote enhanced performance.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.

Keywords

corporate governance, board functions, board structure, stakeholder engagement, business sustainability

Citation

Konadu, R., Ahinful, G.S. and Owusu-Agyei, S. (2021) Corporate governance pillars and business sustainability: does stakeholder engagement matter?. International Journal of Disclosure and Governance, 18, pp. 269-289

Rights

Research Institute

Centre for Research in Accountability, Governance and Sustainability (CRAGS)