ESG Performance in Relationship With the Board of Directors, Sustainability Incentives, and CSR

ESG Performance in Relationship With the Board of Directors, Sustainability Incentives, and CSR

Ali Ahmadi, Tijani Amara
Copyright: © 2024 |Pages: 7
DOI: 10.4018/979-8-3693-1388-6.ch012
OnDemand:
(Individual Chapters)
Available
$37.50
Current Special Offers
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

This chapter seeks to address the ESG performance gap in the literature by examining the impact of board size, board independence, women on the board, incentive compensation in terms of sustainability, and CSR committee on the ESG performance. Using one of the largest datasets to date, consisting of an unbalanced dataset of 313 constant year observations from MENA region, spanning an eleven-year period (2007-2017), these results are several. First, the results indicate that board size is positively correlated with ESG performance. Also, the authors show that board independence and the percentage of women in the board are positively correlated with ESG performance.
Chapter Preview
Top

2. Hypotheses Development

The variables most frequently used in the literature to describe the effect of board size, gender diversity, board independence, sustainability incentive compensation and performance of the CSR committee on ESG performance and we develop below our hypotheses for each of these characteristics of corporate governance (Harjoto & Wang, 2020), (Merendino & Melville, 2019), (Ng et al., 2020), (Peng, 2020), (Qa’dan & Suwaidan, 2019).

hypothesis 1. the size of the plaque favorably affects ESG performance.

hypothesis 2. the independence of the board positively affects the performance of the ESG. hypothesis 3. a high level of gender diversity positively affects ESG performance. executive compensation and carbon performance

hypothesis 4: ceteris paribus, large companies adopt sustainable ESG remuneration incentives, which are more important for process-oriented ESG performance.

hypothesis 5. the establishment of a CSR sustainability committee has a positive impact on ESG performance.

Complete Chapter List

Search this Book:
Reset