The impact of corporate governance mechanisms on sustainability performance

Sabetkooshkinian, Majid

doi:10.22034/necsbm.2024.467362.1067

The impact of corporate governance mechanisms on sustainability performance

Document Type : Original Article

Author

Majid Sabetkooshkinian

Ph.D candidate, Gorgan branch, Islamic Azad University, Gorgan, Iran

10.22034/necsbm.2024.467362.1067

Abstract

Corporate governance is defined as a key element when companies' performance is growing, leading to increased investor confidence. On the other hand, corporate sustainability refers to an organization's ability to persistently continue its operations and their impacts on environmental, social, and human capital. Such companies enhance their performance and activities over time by managing economic, social, and environmental dimensions. Therefore, the present study investigates the relationship between corporate governance mechanisms and corporate sustainability performance. For this purpose, financial data from 63 companies listed on the Tehran Stock Exchange from 2015 to 2021 were used. In this research, multivariate regression was employed, and corporate sustainability performance data were collected using content analysis based on board reports. Within the framework of separate hypotheses, the effect of each corporate governance indicator on corporate sustainability performance was measured. The results indicate a relationship between institutional ownership and corporate sustainability performance. Additionally, the findings show a relationship between audit quality and corporate sustainability performance. Finally, the results demonstrate a relationship between the expertise of the audit committee and corporate performance.

Keywords

Corporate governance

corporate sustainability

institutional ownership

audit quality

independence of the board of directors

independence of the audit committee

expertise of the audit committee

Subjects

Accounting

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