The impact of environmental, social, and governance, board diversity and firm size on the sustainable development goals of registered firm in China

Abstract

Recently, sustainability practices have become a global requirement to attain the high-performance goals of the organizations and capture the focus of regulators and recent researchers. Therefore, the present article aim is to investigate the board diversity (percentage of women directors, percentage of non-executive directors and board member nationality) and firm size (logarithm of total assets) on the sustainability practices (expenditures on environmental sustainability) of the top ten registered firms in China. The researchers have adopted the secondary source of data collection and extracted the data from the financial statements of the adopted firms from 2005 to 2019. Additionally, the researchers used a fixed-effect model (FEM) and a robust standard error model to investigate the relationship between the two concepts. There were positive correlations between firm size (logarithmic total assets) and board diversity (percentage of women directors, percentage of non-executive directors, and board member nationality) and China's top ten registered firms' sustainability practises (expenditures on environmental sustainability). This research provides help to the policymakers while formulating strategies and policies related to the adoption of sustainability practices.