The Antecedents of Corporate Sustainability Performance: A Study on Generic and Sustainability-Related Corporate Governance Mechanisms

Marco Minciullo (), Maria Cristina Zaccone and Matteo Pedrini
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Marco Minciullo: ALTIS-Graduate School Business & Society, Università Cattolica del Sacro Cuore, Largo Gemelli 1, 20123 Milan, Italy
Maria Cristina Zaccone: ALTIS-Graduate School Business & Society, Università Cattolica del Sacro Cuore, Largo Gemelli 1, 20123 Milan, Italy
Matteo Pedrini: ALTIS-Graduate School Business & Society, Università Cattolica del Sacro Cuore, Largo Gemelli 1, 20123 Milan, Italy

Sustainability, 2022, vol. 14, issue 15, 1-19

Abstract: This study aims to investigate the antecedents of corporate sustainability performance, focusing on corporate governance mechanisms. The growing diffusion of sustainability-related corporate governance regulation raises a legitimate question about the effectiveness of these mechanisms in fostering sustainability performance. While extant research has separately taken into consideration different mechanisms related to corporate governance and sustainability, in this study, we investigate the combined effect of generic governance mechanisms, such as board size and board independence, and sustainability-related governance mechanisms, such as the presence of a sustainability committee and sustainability targets in executives’ compensation schemes, on corporate sustainability performance. Based on a dataset of 185 companies listed in the most important European markets, our results indicate that both generic and sustainability-related governance mechanisms enhance corporate sustainability performance. More specifically, the presence of independent directors and the inclusion of quantitative sustainability targets in executives’ compensation schemes contribute to corporate sustainability performance.

Keywords: generic governance mechanisms; sustainability-related governance mechanisms; corporate sustainability performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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