Executive compensation, environmental performance, and sustainable banking: The moderating effect of governance mechanisms

Author(s):  
Douglas A. Adu ◽  
Basil Al‐Najjar ◽  
Thitima Sitthipongpanich
Author(s):  
Yang Wang ◽  
Yijun Chen ◽  
Qi Xu ◽  
Wenqing Wu

ISO14001 certification is of great significance to the company's environmental performance. Through the empirical analysis of environmental certification and performance of Listed Companies in China, this chapter draws some valuable conclusions. The initial ISO14001 certification will worsen the environmental performance of the enterprises. The equity nature of the enterprise has a moderating effect on the ISO14001 certification's influence on enterprise environmental performance. The separation rate of the above-mentioned two positions has a moderating effect on the ISO14001 certification's influence on enterprise environmental performance. Based on the above conclusions, this chapter puts forward some reasonable policy suggestions.


2018 ◽  
Vol 23 (3) ◽  
pp. 153-170 ◽  
Author(s):  
Wenbin Ni ◽  
Hongyi Sun

PurposeLiterature proposes that implementing supplier assessment and supplier collaboration simultaneously may lead to better sustainable performance. The purpose of this paper is to empirically examine the proposition by considering the contingent effects of two contextual factors, the environmental dynamism and the stakeholder pressure on sustainability.Design/methodology/approachFour configurations of governance mechanisms are identified according to the different levels of implementing supplier assessment and supplier collaboration. The performances of the four configurations are compared against the levels of environmental dynamism and stakeholder pressure. The empirical data from the sixth round of International Manufacturing Strategy Survey (IMSS) are used.FindingsThis paper found that the governance configuration with the highest level of implementing both governance mechanisms leads to the best performance. The synergistic effect that supplier assessment and collaboration complement each other to achieve better performance is verified. However, the synergistic effect holds robust only when the environmental dynamism and stakeholder pressure are high. The synergistic effect vanishes in the social and environmental performance when the environmental dynamism is low. The effect also vanishes in the environmental performance when the stakeholder pressure is low. No synergistic effect was found in business performance.Originality/valueThis paper reveals the complementarity between supplier assessment and supplier collaboration when they are implemented at a reasonably high level. It also reveals the importance of the fit of governance mechanisms under different external contexts. The results contribute to reconciling the disputes about the effectiveness of governing supplier relationship to achieve the sustainability along a supply chain.


2008 ◽  
Vol 5 (4) ◽  
pp. 135-148
Author(s):  
Ruey-Dang Chang ◽  
Yeun-Wen Chang ◽  
Ching-Ping Chang ◽  
Fiona Hu

This study uses investment opportunity set (IOS) as an environmental factor, and investigates its moderating effect on the relationships between corporate governance mechanisms (including internal and external corporate governance mechanisms) and firm performance. The empirical results using regression analysis show: (1) The IOS does not have a moderating effect on audit quality and firm performance. (2) The negative relationship between institutional investor ownership and firm performance is stronger for firms with higher investment opportunities. (3) When CEO is the chairman of the board, high growth firms can lead to better firm performance. (4) The relationship between the IOS and pledged shares ratio of directors and supervisors has positive influence on firm performance


2021 ◽  
Vol 14 (8) ◽  
pp. 354
Author(s):  
Matteo Rossi ◽  
Jamel Chouaibi ◽  
Salim Chouaibi ◽  
Wafa Jilani ◽  
Yamina Chouaibi

This study aims to examine the potential effect that corporate social responsibility practices (CSR) have on financial performance in ESG firms, using the moderating role of board characteristics. To test the moderating effect of the board characteristics in the relationship between CSR practices and financial performance, we applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries in analyzing data of 225 listed companies between 2015 and 2019. The results show that board characteristics partially moderate the relationship between CSR practices and financial performance in European ESG firms. In addition, this study indicates that CSR practices affect the firm’s financial performance positively. The study findings appended a new dimension to governance research that could provide policymakers and regulators with a valuable source of information to strengthen governance mechanisms for better financial performance. Previous studies mostly investigate the direct effect of corporate governance on financial performance. A few studies examine the moderating effect of CSR practice. This paper contributes by investigating the moderating effect of governance mechanisms in the ESG context.


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