Do corporate governance mechanisms curb the anti-environmental behavior of firms worldwide? An illustration through waste management. (15th May 2022)

• Record Type: Journal Article
• Authors: Shahab, Yasir; Gull, Ammar Ali; Rind, Asad Ali; Alias Sarang, Aitzaz Ahsan; Ahsan, Tanveer
• Is Part Of: Journal of environmental management. Volume 310(2022)
• Publication Date: 2022-05-15
• Subjects: Corporate governance mechanism -- Waste management -- Waste production and recycling -- Unethical business practices; Environmental policy -- Periodicals; Environmental management -- Periodicals; Environment -- Periodicals; Ecology -- Periodicals; 363.705
• DOI: 10.1016/j.jenvman.2022.114707
• Languages: English
• ISSNs: 0301-4797

Abstract

Abstract: Driven by the current surge in environmental and climate issues and the pressure of the government and regulatory bodies on corporations to diminish their carbon trails, this study uniquely examines the impact of distinct corporate governance mechanisms on the level of waste produced on a global sample of firms during 2002-2019. Our findings show that corporate governance mechanisms are important predictors of the level of waste produced by firms worldwide. In particular, the board size, board independence, and sustainability committees are linked to a higher level of waste produced. Conversely, the board gender diversity reduces the waste produced, and CEO duality is not associated with the level of waste produced. Our results are robust to alternate proxies of main variables, potential endogeneity concerns (using propensity score matching, two-stage least squares, and generalized system method of moments technique), and additional analyses. Further analysis shows that larger and gender-diverse boards improve the firm's waste recycling behavior, whereas board independence and the presence of a sustainability committee are negatively related to waste recycling. The study has vital insinuations in developing efficient, ethical regulations and guidelines for corporate boards specifically from the perspective of waste management, environmental protection, and restoration. Highlights: Examines the corporate governance mechanisms-waste management practices nexus. Uses an international sample of listed firms from 43 countries between 2002 and 2019. Corporate governance mechanisms influence the level of waste produced and recycled.