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

Author

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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)

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.

Suggested Citation

  • Marco Minciullo & Maria Cristina Zaccone & Matteo Pedrini, 2022. "The Antecedents of Corporate Sustainability Performance: A Study on Generic and Sustainability-Related Corporate Governance Mechanisms," Sustainability, MDPI, vol. 14(15), pages 1-19, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9761-:d:883030
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    3. Ibrahim Khalifa Elmghaamez & Jacinta Nwachukwu & Collins G. Ntim, 2024. "ESG disclosure and financial performance of multinational enterprises: The moderating effect of board standing committees," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3593-3638, July.

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