Does the effectiveness of board and audit committees influence the environmental and sustainability performance: A Comparative study of developed and developing countries

Ali Thabit Yahya (), Sheena Rehman (), Najib H.S. Farhan () and Faozi A. Almaqtari ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 3, 164-174

Abstract: This study examines the impact of board and audit committee attributes on the sustainability and environmental performance of 3,752 firms from Europe and Asia. Using this panel dataset spanning from 2016 to 2021, the study applies fixed and random effects models. Findings revealed a substantial influence of board size, independence, expertise, and diversity on sustainability performance, with board diversity exhibiting the highest influence in cultivating environmental responsibility. In addition, the independence and expertise of the audit committee are positively significant in enhancing sustainability performance, upholding the prominence of governance oversight. These findings highlight the importance of corporate governance in strengthening their board and audit committee structures to foster sustainability performance and environmental initiatives. The study contributes to the existing literature by providing cross-country empirical evidence and offering insights for corporates, environmentalists, policymakers, investors, and shareholders on enhancing corporate governance standards to improve sustainability performance. The implications of this study highlight the importance of regulatory frameworks that promote diverse and knowledgeable boards and audit committees, thereby ensuring the sustainability of corporate initiatives and strategies.

Keywords: Audit committee attributes; Board characteristics; Environmental performance; Sustainability performance. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aac:ijirss:v:8:y:2025:i:3:p:164-174:id:6470

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