Modeling board governance, environmental expertise, and social engagement effects on firm environmental performance: Panel data evidence

Daehyun Kim1; Michael J. Marin2; Gordon D. Richardson1; Steven E. Salterio3; Albert Tsang4

2023-08-01

10.1016/j.jcae.2023.100364

JOURNAL OF CONTEMPORARY ACCOUNTING & ECONOMICS   影响因子和分区

1815-5669

Prior research establishes that board governance quality measures positively impact firm environmental performance. In this study, we propose an empirical model using structural equation modeling (SEM) to explore additional enhancements to board governance, namely board environmental expertise (BEE) and board social engagement (BSE) and show that they incrementally improve firm environmental performance (EN). Our proposed latent construct measure, BEE, goes beyond traditionally dichotomous measures used in the literature. BEE has a total effect on firm environmental performance that is over two thirds the size of effects arising from traditional governance quality measures (GOV). The second enhancement of our model is the focus on BSE, a novel construct to the CSR lit-erature. In addition to possessing environmental knowledge enabling expertise, we demonstrate that a board with a deeper commitment to society will further improve firm environmental performance. Using SEM, we find that the indirect effects of GOV, BEE, and BSE on EN represent a substantial portion of the total effects on EN. Hence, ignoring these indirect effects would result in substantial understatement of the effects of improvements to governance on environmental performance.& COPY; 2023 Elsevier Ltd. All rights reserved.

Board environmental expertise Board social engagement Firm environmental Performance Structural equation modeling

SSCI

英语

其他

Business & Economics

Business, Finance ; Economics

WOS:001023518500001

ELSEVIER SCI LTD

Web of Science

1.Rotman School of Management, University of Toronto, Toronto, ON, Canada
2.Institute for Management & Innovation, University of Toronto Mississauga, Mississauga, ON, Canada
3.Smith School of Business, Queen’s University, Kingston, ON, Canada
4.SUSTech Business School, Southern University of Science and Technology, Shenzhen, China

Daehyun Kim,Michael J. Marin,Gordon D. Richardson,et al. Modeling board governance, environmental expertise, and social engagement effects on firm environmental performance: Panel data evidence[J]. JOURNAL OF CONTEMPORARY ACCOUNTING & ECONOMICS,2023,19(2).

Daehyun Kim,Michael J. Marin,Gordon D. Richardson,Steven E. Salterio,&Albert Tsang.(2023).Modeling board governance, environmental expertise, and social engagement effects on firm environmental performance: Panel data evidence.JOURNAL OF CONTEMPORARY ACCOUNTING & ECONOMICS,19(2).

Daehyun Kim,et al."Modeling board governance, environmental expertise, and social engagement effects on firm environmental performance: Panel data evidence".JOURNAL OF CONTEMPORARY ACCOUNTING & ECONOMICS 19.2(2023).