Artikel

Relationship between corporate sustainability, corporate governance and financial performance

This study aims to investigate three crucial questions. First, whether the corporate governance and corporate sustainability leads to improved firm financial performance or not? Second, whether the sound corporate governance practices improve firm sustainable performance or not? Third, whether the corporate sustainability mediates the relationship between corporate governance and firm performance or not? We used the sample 425 firms listed on Australian Securities Exchange (ASX). Using structural equation modeling approach, we find that corporate governance is positively linkedto corporate sustainability performance, and corporate sustainability performance leads to improved financial performance. We also find that corporate sustainability performancemediates the link between corporate governance and financial performance. These findings are important for two aspects. The first is for firms' management, the regulators, policymakersin promoting corporate governance and corporate sustainability practices. Second, our study provides empirical support to current policy debate that investing in good governanceand better sustainability practicesis vital for long-term value creation.

Language
Englisch

Bibliographic citation
Journal: Pakistan Journal of Commerce and Social Sciences (PJCSS) ; ISSN: 2309-8619 ; Volume: 13 ; Year: 2019 ; Issue: 4 ; Pages: 915-933 ; Lahore: Johar Education Society, Pakistan (JESPK)

Classification
Wirtschaft
Subject
sustainability performance
financial performance
corporate governance
ASX
Australia

Event
Geistige Schöpfung
(who)
Munir, Asma
Khan, Farman Ullah
Usman, Muhammad
Khuram, Sobia
Event
Veröffentlichung
(who)
Johar Education Society, Pakistan (JESPK)
(where)
Lahore
(when)
2019

Handle
Last update
20.09.2024, 8:21 AM CEST

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Munir, Asma
  • Khan, Farman Ullah
  • Usman, Muhammad
  • Khuram, Sobia
  • Johar Education Society, Pakistan (JESPK)

Time of origin

  • 2019

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