Revealing the Effects of Corporate Governance on Green Investment and Innovation: Do Law and Policy Matter?

Yuan, Long; Sohail, Muhammad Tayyab

doi:10.3389/fpsyg.2022.961122

Cited by 6 publications

(2 citation statements)

References 82 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to the perspective of agency theory, corporate governance is a mean to enhance green innovation performance (Lai & Sohail, 2022;Amore & Bennedsen, 2016). Green innovation implementation could reduce agency conflicts and transform corporate development through the values of compliance with regulations (Zhang, Liu & Li, 2022).…”

Section: The Mediation Effect Of Firm Performance On Independent Boar...mentioning

confidence: 99%

The mediation effect of firm performance on the association between Two-tier Independent Boards and Green Innovation Practices: evidence from Indonesia

Mahsina,

Soewarno

2024

View full text Add to dashboard Cite

Purpose: This research examines the role of firm performance in the effect of a two-tier independent board on green innovation practices.Design/methodology/approach: This study employs a simple mediation model-4 using the Hayes Process approach to OLS regression with the R package. The dataset uses a total 518 public companies listed on the Indonesia Stock Exchange for 2017 to 2019, having 1,554 firm-year observations. Findings: The study revealed, based on the two-tier system, the role of a composite independent board on firm performance and green innovation is positive and significant. However, individual results for both independent commissaries and directors in terms of firm performance and green innovation practices are not significant. This result implies that a composite of independent boards is essential to reduce and mitigate the failure of corporate governance.Research limitations/implications: This research only applied a sample of companies from one country which adopted two-tier system. Future research might apply as a comparative analysis of those countries group with two-tier system versus countries group with one-tier system.Practical implications: First, companies need to enhance the knowledge and expertise of both independent directors and independent commissaries to improve their roles. Second, it is important to provide support for the campaign and incentives for green innovation practices. Third, insight drawn from this study leads to the latest regulation from the Financial Services Authority (as the representative of the Indonesian government), whereby independent directors are no longer mandatory for publicly listed companies starting in December 2021 and must be evaluated because the composite independent board is an effective tool to execute green projects and to accelerate the SDG agenda in 2030.Social Implications: The social implication of this study is companies’ awareness to produce more eco-based products, which are expected by stakeholders, can be actualized. Also, public perception shows companies with green products have better performance.Originality/value: This research is the first study examining the mediating role of firm performance on the effect of a two-tier independent board on green innovation practices. Second, this study introduces the latest methodology for the simple mediation model using a Hayes-based approach in the field of accounting with an open-source software R package.

show abstract

Section: The Mediation Effect Of Firm Performance On Independent Boar...mentioning

confidence: 99%

The mediation effect of firm performance on the association between Two-tier Independent Boards and Green Innovation Practices: evidence from Indonesia

Mahsina,

Soewarno

2024

View full text Add to dashboard Cite

show abstract

“…Similarly, in some studies; the impact of CG on GI as a direct effect is investigated Sohail, 2022 andKarim et al, 2021). GI used as an independent variable to calculate the impact of CG and sustainable development of SME's, particularly on the food and beverage companies (Jayathilake, 2019;Le & Ferasso, 2022).…”

Section: Introductionmentioning

confidence: 99%

Exploring the Corporate Governance and Financial Performance: Nexus Through Green Investment in the Automobile Sector of Pakistan

Sajida Gul,

Mahboob Ullah,

Shahid Rasheed

2024

IJMRES

View full text Add to dashboard Cite

Based on the legitimacy theory, The main aim of this study intends to evaluate the impact of corporate governance (CG) on firm performance (FP) with the mediating role of green investment (GI) by deploying automobile sector listed on PSX from 2011 to 2021. Because automobile sector has a significant impact on Pakistan GDP and also the growing importance of sustainable practices. This study used balanced panel data with diagnostic tests, descriptive, correlation analysis, GLS model and mediation analysis via STATA. Preacher and Hayes (2013) model were used to check the mediating effect. The results found that there has a significant positive impact of managerial Ownership (MO) and audit committees (AC) on firm performance (FP), with board size (BS) showing a negative and statistically insignificant effect. The overall framework implies a significant and positive relationship between CG and FP, while GI did not show the mediating effect. This current study emphasizes that the companies should incorporate green investment strategy into CG frameworks to meet financial success and sustainable environment. This provides a remarkable insight for policymakers to improve governmental rules, stimulate stakeholder input, enforce transparent disclosure standards, and promotion of GI in order to establish a sustainable corporate environment. These actions are recognized as crucial tactics for creating a corporate structure that balances environmental responsibility with economic development.

show abstract

Executive's environmental background and sustainable development: Evidence from substantial green innovation

Luo,

Zhang

2024

Sustainable Development

View full text Add to dashboard Cite

Executive as decision makers influence the corporate sustainable development, especially their environmental experiences will be internalized in corporate management to promote the development of corporate substantive green innovation. This article empirically explores the impact of executive's environmental background on corporate substantive green innovation based on the data of Chinese A‐share listed companies from 2011 to 2019, and finds that executive's environmental background is conducive to promoting corporate substantive green innovation, which is achieved by obtaining government environmental subsidies and attracting green investors. And further research has revealed that executive's environmental background has a more significant impact on corporate substantive green innovation with higher level of environmental regulations, quality of corporate governance and environmental awareness of executives. The findings of this article not only provides a new perspective for companies to choose a green development path and enhance substantive green innovation, but also provides empirical evidence for companies to promote green transformation and introduce executive with environmental background.

show abstract

Revealing the Effects of Corporate Governance on Green Investment and Innovation: Do Law and Policy Matter?

Cited by 6 publications

References 82 publications

The mediation effect of firm performance on the association between Two-tier Independent Boards and Green Innovation Practices: evidence from Indonesia

The mediation effect of firm performance on the association between Two-tier Independent Boards and Green Innovation Practices: evidence from Indonesia

Exploring the Corporate Governance and Financial Performance: Nexus Through Green Investment in the Automobile Sector of Pakistan

Executive's environmental background and sustainable development: Evidence from substantial green innovation

Contact Info

Product

Resources

About