Board of directors' characteristics, internal control mechanisms and corporate sustainability performance: a theoretical framework

Fakir, A.N.M. Asaduzzaman; Jusoh, Ruzita; Rahin, Nurliana Md

doi:10.1504/wremsd.2019.104869

Cited by 1 publication

(2 citation statements)

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“…It is argued that these inconsistent results are due to not considering some other variable that can mediate this relationship. It is widely accepted that the board of directors rarely has a direct influence on its performance (COSO, 2004;Fakir, Jusoh, & Rahin, 2019), and, consistent with the assumption, this study also finds support for the mediation role of ERM use. This means the board can influence sustainability performance by ensuring greater use of ERM in a firm.…”

Section: Discussionsupporting

confidence: 87%

“…Today's business is more complex; the demand for good governance is also growing, hence corporate governance is extremely relevant to the sustainability of the firm. In effect, there are very few studies that focus on corporate governance, in general, and board of directors, in particular, in relation to CSP (Fakir et al, 2019). In connection with the increasing demand for sustainability incorporation and the good governance of companies, this study examines the relationship between these two contrasting but objectively aligned disciplines of corporate sustainability and board gender diversity.…”

Section: Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Board Gender Diversity and Corporate Sustainability Performance: Mediating Role of Enterprise Risk Management

Fakir¹,

Jusoh²

2020

JAFEB

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The objective of this paper is to explore how board gender diversity affects corporate sustainability performance. Therefore, this paper examines the direct association between board gender diversity with corporate sustainability performance and the mediation effect of enterprise risk management (ERM) on this association. The study employed a cross-sectional survey method. Data were collected from annual reports, websites, and through the questionnaires that were distributed to Chief Financial Officers (CFOs) of all the listed companies of Dhaka Stock Exchange, Bangladesh. The partial least square technique of Structural Equation Modelling (SEM) approach was employed for data analysis. The result did not find support for the direct association between board gender diversity and sustainability performance in Bangladesh context. This implies that contextual factors, such as, male-dominant board, appointment of female directors based on family ties, lack of education and expertise etc. may discount gender diversity direct influence on sustainability performance. However, the study finds strong support for the mediating role of ERM use within the corporate structure. Further analysis of indirect effect suggests that ERM use mediates the relationship of board gender diversity and sustainability performance in full. This implies that in the Bangladesh context effective use of ERM is highly recommended.

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Section: Discussionsupporting

confidence: 87%

Section: Resultsmentioning

confidence: 99%