Environmental performance and corporate governance: What we learn from Japan

Abstract

This study aims to acknowledge how environmental performance, corporate governance, competitive advantage, and financial performance-linked each other in Japan. The data used are data from chemical, pharmaceutical, and machinery sub-sector companies listed on the Japan Exchange Group 2013 - 2018. This research was explanatory research using a quantitative approach and implemented Partial least Square (PLS). This study found that the board of directors and firm performance have no significant effect on the company's environmental performance, while corporate control and ownership structure provide a different result. Then, environmental performance and ownership structure have been proven to bring a significant contribution to the company's competitive advantage. Reflecting on Japan, this study suggests several recommendations to the Indonesian Ministry of Environment and Forestry to develop environmental conservation schemes and concepts implemented by public companies in Indonesia and the Indonesian Ministry of Finance to develop applicable environmental accounting concepts for public companies in Indonesia.

Impact of Internal Corporate Governance Mechanisms on the Financial and Environmental Performance of Banks in Uae During the Covid-19 Pandemic

“…The connection between various forms of corporate governance and environmental performance has been a subject of numerous studies (Miroshnychenko et al, 2019;Adinehzadeh et al, 2018;Cong & Freedman, 2011;Lu & Wang, 2021;Rubino & Napoli, 2020;Walls et al, 2012;Endo, 2020;Budiharjo, 2019;Budiharjo, 2020;Glass et al, 2016;Damayanti et al, 2021;Jaffar et al, 2028;Wang et al, 2023;Safitri, 2021;Salo, 2008). Walls et al (2012) explored the link between corporate governance practices and environmental performance.…”

Profitability, Firm Value, Income Smoothing: The Moderating Role of Firm Growth

“…In agency theory, managers must obtain good company performance to maximize shareholder wealth (Jensen & Meckling, 1976). The company's good operating performance can be seen from the high level of profitability (Damayanti & Firmansyah, 2021). The profit generated by the company is a measure of the company's operating performance.…”

“…Income smoothing aims to stabilize the manager's performance in one period (Firmansyah & Herawaty, 2019). Company performance includes operating and market performance (Damayanti & Firmansyah, 2021). Stable earnings show that the company has a low risk .…”