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Title Effects of Corporate Governance on Corporate Environmental Performance: International Evidence.

Author(s) Muhammad Adnan Qureshi

Abstract Corporate environmental performance (CEP) has arisen as a critical component of modern corporate governance, showing an organization's commitment to sustainable practices and impact on the larger ecological setting. This study examines the multidimensional nature of CEP, including its determinants, ramifications, and theoretical frameworks for measurement and development. Using agency theory and stakeholder theory as foundations, the study investigates the duties and responsibilities of corporate boards, the interactions between management and shareholders, and the broader public expectations that influence company activity. Within the corporate governance and its factors our empirical analysis examines the effects of corporate environmental performance in global perspectives. We follow the Global Reporting Initiative (GRI) guidelines (G5) and extract the data from Thomson Reuters EIKON and Bloomberg of the period of 2000 to 2022. We will evaluate the Corporate Environmental performance of 75 countries, including 7875 firms. We will construct the panel for the data for estimations of model. Furthermore, we will try to examine which factor of corporate governance have the most significant impact on corporate environmental performance and then suggest the policy for the management and policy maker according to Agency and Stakeholder theory. It will be comprehensive research and results will help to take initiative for the green and clean environment by year of 2030 which is the Agenda of United Nation 2015 in Sustainable Development Goals (SGD). The fixed effect methodology is a fundamental methodological approach used in this study to compensate for unobserved heterogeneity by accounting for time-invariant characteristics across enterprises. This method allows for a more precise evaluation of the impact of numerous governance variables on CEP, offering substantial insights into the determinants of environmental performance. The study also emphasizes the importance of consistent reporting formats in improving CEP. The Global Reporting Initiative (GRI) guidelines, known for their comprehensive approach to sustainability reporting, serve as a reference point in this regard. However, the changing nature of environmental concerns and stakeholder expectations needs the ongoing development of these standards. Building on the current GRI framework, the study suggests improvements to better capture the intricacies of modern environmental performance measurements. Key recommendations include more specific indicators of resource efficiency, pollution management, and climate change mitigation. Furthermore, the revised approach promotes greater transparency and comparability, allowing stakeholders to make more informed assessments of corporate environmental consequences. By combining these enhancements, the new GRI framework hopes to promote more effective and accountable environmental stewardship in the corporate sector. In conclusion, this research conducts a comprehensive analysis of CEP via the perspectives of corporate governance, agency theory, and stakeholder theory, using the fixed effect technique to assure methodological rigor. The rejection of the hypothesized effects of board size and CEO duality on CEP emphasizes the necessity for a more comprehensive evaluation of governance variables. Furthermore, the proposed changes to the GRI rules aim to encourage more rigorous and open environmental reporting, aligning corporate practices with the growing demand for sustainability and accountability. Keywords: Corporate Governance, Board size, CEO duality, Corporate Environmental Performance, Agency theory, Stakeholder theory, Sustainability reporting, GRI framework

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2025-02-27

Subject Finance

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