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Enhancing Environmental Quality through Board Dynamics: The Role of Environmental Regulations in Advancing Circular Economy in the SSA Region

Author

Listed:
  • Prince Brefo Boakye

    (SDD – University of Business and Integrated Development Studies)

  • John Yaw Akparep

    (SDD – University of Business and Integrated Development Studies)

  • Andrews Salakpi

    (SDD – University of Business and Integrated Development Studies)

Abstract

As the transition to a circular economy (CE) becomes essential for achieving global sustainability goals, understanding the role of corporate governance in driving CE performance is increasingly critical. This study investigates the impact of board dynamics on CE performance in firms across Sub-Saharan Africa (SSA), with a particular focus on the moderating role of environmental regulations. Using a quantitative research approach, panel data from 214 listed manufacturing firms in SSA covering the period 2010 to 2022 were analyzed. To address issues of endogeneity, autocorrelation, and heteroscedasticity, the Generalized Method of Moments (GMM) estimator was employed for robust analysis. The findings reveal that board dynamics specifically gender diversity, educational background, and age diversity positively and significantly influence CE performance, while board independence exhibits an insignificant relationship. Furthermore, environmental regulations play a significant moderating role, strengthening the impact of board dynamics on CE adoption. A heterogeneous analysis highlights regional variations, with stronger effects observed in West and Eastern Africa compared to Central Africa. These findings highlight the importance of fostering inclusive, diverse, and skilled boards while implementing robust regulatory frameworks to accelerate CE performance. The study offers theoretical insights, practical implications, and policy recommendations to strengthen governance structures and promote sustainability efforts in emerging economies.

Suggested Citation

  • Prince Brefo Boakye & John Yaw Akparep & Andrews Salakpi, 2025. "Enhancing Environmental Quality through Board Dynamics: The Role of Environmental Regulations in Advancing Circular Economy in the SSA Region," Circular Economy and Sustainability, Springer, vol. 5(3), pages 1757-1783, June.
    • Handle: RePEc:spr:circec:v:5:y:2025:i:3:d:10.1007_s43615-025-00519-1
    DOI: 10.1007/s43615-025-00519-1
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