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Corporate Governance and the Environment: What Type of Governance Creates Greener Companies?
Author(s) -
Kock Carl J.,
Santaló Juan,
Diestre Luis
Publication year - 2012
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.2010.00993.x
Subject(s) - corporate governance , business , stakeholder , incentive , accounting , agency (philosophy) , divergence (linguistics) , control (management) , principal–agent problem , perspective (graphical) , empirical evidence , market for corporate control , industrial organization , economics , finance , market economy , shareholder , management , philosophy , linguistics , epistemology , artificial intelligence , computer science
We build on a stakeholder–agency theoretical perspective to explore the impact of particular corporate governance mechanisms on firm environmental performance. Our empirical evidence shows that several important corporate governance mechanisms such as the board of directors, managerial incentives, the market for corporate control, and the legal and regulatory system determine firms' environmental performance levels. These results suggest that these different governance mechanisms resolve, to some extent, the existing divergence of interests between stakeholders and managers with respect to environmental activities.