Abstract
At present, climate and other environmental problems are arising because of the development of the industrial sector at a large level. The industrial sector is supposed to be a major cause of climate change problems that lead to global warming. Therefore, corporate social responsibility (CSR) with the help of corporate governance is an imperative approach to control these social problems. Consequently, in the context of the organizational and management theory, agency theory, and the stakeholder theory, this study focuses on important factors of internal corporate governance such as chief executive officer (CEO) power, the board size, independence, ownership concentration, managerial ownership, and audit quality for improving the profitability of firms. Moreover, this study considers corporate social responsibility as a controlling and moderating factor for firm performance and internal corporate governance. We employed ordinary least square (OLS) for endogeneity testing, fixed effect (FE), generalized method of moments (GMM), and feasible generalized least square (FGLS) on data of Pakistani firms for the period of 2010–2019. The results of this study demonstrate the following outcomes: firstly, all internal corporate governance factors are positively linked with firm performance; secondly, corporate social responsibility (CSR) is the most valuable tool for improving profitability. Importantly, this study suggests that all internal corporate governance factors are positively linked with firm performance because of the interactive role of corporate social responsibility (CSR). This study practically contributes to the literature by suggesting the imperative role of corporate social responsibility (CSR) for internal corporate governance, which may help to reduce climate and social problems.
Highlights
Introduction published maps and institutional affilAt present, the world is suffering severe environmental glitches and the problem getting worse over time; institutions and governments are working to minimize or remove these environmental problems [1]
Afterwards, this study conducted an endogeneity test because panel data has been used to probe the connection between internal corporate governance and firm performance with the moderating role of corporate social responsibility (CSR)
The object of this study is to evaluate the relationship between internal corporate governance and firm performance
Summary
Introduction published maps and institutional affilAt present, the world is suffering severe environmental glitches and the problem getting worse over time; institutions and governments are working to minimize or remove these environmental problems [1]. Previous researchers reported that the industrial sector is highly responsible for these environmental and social problems, especially the firms of developing economies [2]. Corporate social responsibility (CSR) is measured as a major tool to motivate insider corporate governance for social actions [3]. CSR practices normally engaged firm-level governance to participate in social and environmental activities [4]. The internal corporate governance (ICG) is an imperative body to control and monitor corporate social practices. Profit maximization is a major motive of every business or firm. Corporate governance adopts various techniques to increase the firm profit. The majority of studies revealed that inside corporate governance is highly important for firm profitability and other actions [5,6]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Environmental Research and Public Health
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
