Abstract
Climate change has become one of the biggest issue across the globe as most countries have been bearing the consequences of this phenomenon on a global scale. Countries have been drafting environmental regulations to help mitigate the environmental pollution caused by climate change. Therefore, the implications of environmental policies in various sectors of the economy are dependent on state regulations. The main objective of this study is to investigate the impact of corporate governance on environmental performance. Furthermore, this study examines the impact of institutional regulations on the relationship of corporate governance and firms’ environmental performance. The data was collected from the top 120 manufacturing companies that are based in Pakistan, India, China and Bangladesh. The binary logit regression methodology was employed in this study. The results indicate that the attributes of corporate governance have a positive and significant impact on green performance. In addition, the results were also positive and significant on the moderating role of institutional regulation for corporate governance and firm performance. Hence, based on the empirical findings, this study recommends strict environmental institutional regulations to further enhance environmental performance. Keywords:Green performance, corporate governance, environment, institutional policies
Highlights
Environmental protection has been a key agenda in many countries around the world to mitigate the effects of climate change
This paper have concluded that environmental performance is becoming a prime agenda for all governments across the globe
Governments have introduced several policies to cope with the challenges of climate change and environmental pollution
Summary
Environmental protection has been a key agenda in many countries around the world to mitigate the effects of climate change. These long - term fluctuations in climate are due to mass pollution, emissions of carbon dioxide and harmful gasses, and other direct or indirect human activities. To reduce the effects of climate change, countries have designed and implemented several eco-friendly policies, such as the Kyoto Protocol, carbon taxes, Paris Agreement and schemes of emission trading. Tricker (2009) stated that the changes in institutional policies have reshaped the landscape for business competition and included these environmental issues in the strategic goals of corporations. To reduce the effects of climate change, countries have designed and implemented several eco-friendly policies, such as the Kyoto Protocol, carbon taxes, Paris Agreement and schemes of emission trading. Tricker (2009) stated that the changes in institutional policies have reshaped the landscape for business competition and included these environmental issues in the strategic goals of corporations. Ortiz-de-Mandojana, AguileraCaracuel and Aragón-Correa (2010) suggested that bold and creative reforms in governing bodies, and corporate governance structures and practices are needed to meet current environmental challenges
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