The Link between Board Structure, Audit, and Performance for Corporate Sustainability

Ovidiu-Constantin Bunget, Dorel Mateș, Alin-Constantin Dumitrescu, Oana Bogdan and Valentin Burcă
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Ovidiu-Constantin Bunget: Faculty of Economics and Business Administration, West University of Timișoara, 300115 Timișoara, Romania
Dorel Mateș: Faculty of Economics and Business Administration, West University of Timișoara, 300115 Timișoara, Romania
Alin-Constantin Dumitrescu: Faculty of Economics and Business Administration, West University of Timișoara, 300115 Timișoara, Romania
Oana Bogdan: Faculty of Economics and Business Administration, West University of Timișoara, 300115 Timișoara, Romania
Valentin Burcă: Faculty of Economics and Business Administration, West University of Timișoara, 300115 Timișoara, Romania

Sustainability, 2020, vol. 12, issue 20, 1-27

Abstract: The economic and social transformations, the bankruptcies recorded, and the financial crisis affecting all economies have increased the interest for the corporate governance concept. Our intention in this paper was to study the impact of corporate governance attributes on performance given the information published by the entities listed on five stock exchanges from Europe, namely the main market from Bucharest Stock Exchange (BSE) in Romania, the Athens Stock Exchange(ATHEX) main market in Greece, Financial Times Stock Exchange 100 Index (FTSE 100) from Great Britain, Spanish Stock Exchange 35 Index (IBEX 35) from Spain, and Warsaw Stock Exchange 20 Index (WIG 20) from Poland, between 2016–2018. Through mathematical modeling and multiple linear regression, we aimed to determine the extent to which corporate governance characteristics, firm characteristics, industry and stock market fixed effects, and random effects influence the performance of 226 entities included in our sample. The empirical findings revealed that CEO duality, the number of non-executive directors and women on board, audit committee, and audit opinion influenced performance measured by the Return on Assets (ROA) and Return on Equity (ROE) indicators. The ideas highlighted and the results obtained in this research contribute to the literature that analyzes the extent to which an effective governance determines the increase in performance, needed for a sustainable development.

Keywords: corporate governance; audit; performance; sustainability; management board (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:20:p:8408-:d:426978

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