Abstract
In recent years, a growing number of empirical studies have started to thoroughly analyze the nexus between corporate governance (CG) and corporate environmental performance (CEP). This chapter provides the first survey of the literature on this issue. In doing so, we describe the different ways of how internal (ownership, board of directors, and management) and external CG (market for corporate control, institutional, and regulatory environments) can impact CEP and synthesize the most recent findings on the relation between the two constructs. We find that CG has proved to be key in determining CEP. Moreover, the effects of both internal and external CG mechanisms are important drivers of CEP. Taking these findings into account is crucial to understanding the nature and direction of the relationship between CG and CEP.
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