Original scientific paper
https://doi.org/10.1080/1331677X.2022.2080745
The impact of the quality of corporate governance on sustainable development: an analysis based on development level
Monica Violeta Achim
Viorela Ligia Văidean
Andrada Ioana Sabau (Popa)
Ioana Lavinia Safta
Abstract
Sustainable development has gained the attention of researchers
worldwide and is becoming an important topic, especially in relation
to corporate governance principles. This study investigates
the influence of corporate governance on sustainable development
in a sample of 185 countries over 2005–2020 using a panel
linear regression model. Separate analyses are also conducted on
subsamples of high- and low-income countries. Our findings highlight
the positive influence of corporate governance, as measured
by board efficacy, the strength of audits and reports, and digitalisation,
on sustainable development, as measured by the Human
Development Index, Human Capital Index, and Environmental
Performance Index. Moreover, we find a higher positive and marginal
effect of the influence of corporate governance on sustainable
development for low-income countries than for high-income
countries. The robustness checks performed using variables
related to the happiness index, women in top management positions,
and technology adoption verify our results. Our findings are
important for managers and policymakers to consolidate sustainable
development through the incentive brought about by highquality
corporate governance.
Keywords
Corporate governance; sustainable development; corporate social responsibility
Hrčak ID:
303762
URI
Publication date:
31.3.2023.
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