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Exploring the antecedents and consequences of corporate environment performance for sustainable development

Abstract
Corporations are significant contributors to climate change, and increasing public awareness has led scholars to investigate Corporate Environmental Performance (CEP) and its relationship with sustainability. The empirical research on CEP remains limited, particularly regarding the antecedents (such as Board Composition Index) and consequences (such as Corporate Financial Performance) of CEP with impacts of several moderating factors (such as stakeholders, social media sentiment, corporate reputation, and national culture). This study aims to fill the gaps in extant literature by employing a multi-country dataset and rigorous econometric analysis to examine the objective of this thesis – exploring the antecedents and consequences of CEP. Corporate Environmental Performance, Board Composition Index and Corporate Financial Performance (CFP) are the key variables that define the main hypothetical relationships explored in this thesis. CEP refers to corporate efforts to mitigate environmental risks, optimise resource utilisation, and reduce emissions. Board Composition Index refers to a composite of attributes of a corporate board, and Corporate Financial Performance refers to the measurement of a company's financial health and its ability to generate profits. In addition, this thesis investigates the moderating impact of several factors, such as community and regulatory stakeholders, on the relationship between BCI and CEP; the moderating impact of culture, management control strategies (MCS), Corporate Reputation and Social Media Sentiment on the relationship between CEP and CFP. The research is structured into three key parts, representing three articles that align with the key focus of the thesis. The first article investigates the antecedents of CEP, focusing on the composition of the board of directors and stakeholders' interests in CEP. Stakeholder theory is the primary framework used in this article. The second article explores the consequences of CEP by analysing social media sentiment and corporate reputation. Drawing on the Resource-Based view, the article illustrates how firms can achieve a competitive advantage through enhanced CEP in dynamic environments. In addition, Attribution Theory is employed to explain public perceptions of corporate sustainability efforts and their influence on social media sentiment, which in turn affects environmental performance. Article three examines the roles of national culture and proactive management control strategies in shaping CEP outcomes. All the articles in the thesis use panel datasets employing different regression techniques to test the proposed models. The thesis provides both theoretical and practical contributions. The research contributes to extant literature by offering valuable theoretical and practical insights that would interest academics and practitioners. Through a comprehensive methodological approach, including developing a Board Composition Index (BCI) and examining the joint impacts of stakeholders, the study provides new insights into how these variables influence CEP. Moreover, exploring the joint effect of social media sentiment and corporate reputation brings new understandings of how firms’ environmental performance influences financial performance. Additionally, exploring cultural influences and environmental management strategies deepens the knowledge of their role in the CEP-CFP relationship, offering practical guidance for managers in multinational corporations.
Type
Thesis
Series
Citation
Date
2024-10-29
Publisher
The University of Waikato
Rights
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