Board monitoring effectiveness and corporate sustainability performance: do legal system and CEO non-duality matter?

Springer Science and Business Media LLC - Tập 17 - Trang 1243-1267 - 2022
Siew Peng Lee1
1Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Cheras, Kajang, Malaysia

Tóm tắt

Using a cross-sectional dataset comprising 749 firms from 13 countries in Asia Pacific markets, this study examines the effect of board monitoring effectiveness (BME) on corporate sustainability performance (CSP). This study also investigates how BME and the country’s legal system, and BME and CEO non-duality leadership interact to influence CSP. The results reveal that BME positively affects CSP, suggesting that strengthening board monitoring effectiveness will lead to a greater drive towards firms’ sustainable business conduct. This study also finds that firms from countries with civil law system and firms practicing CEO non-duality leadership would enhance the impact of BME on CSP. Additionally, the effect of BME on CSP is more pronounced among non-duality firms operating in countries with civil law regime. The findings are consistent and robust to two different measures of CSP.

Tài liệu tham khảo

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