Board governance and ESG performance in Tokyo stock exchange-listed automobile companies: An empirical analysis

IF 5.5 Q1 MANAGEMENT

Asia Pacific Management Review Pub Date : 2024-12-01 DOI:10.1016/j.apmrv.2024.11.001

Richard Arhinful, Leviticus Mensah, Jerry Seth Owusu-Sarfo

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Abstract

The study investigated the impact of board characteristics on the ESG (Environmental, Social, and Governance) performance of automobile companies listed on the Tokyo Stock Exchange. It aimed to discern how corporate governance affects these firms, focusing on both medium and larger-sized companies. The central research question was: How do board characteristics impact the ESG performance of automobile companies? Data from Thomson Reuters Eikon for 32 automobile companies, spanning 2005 to 2021, were analyzed, with the companies categorized into medium (15) and larger-sized (17) classifications. The study employed random and fixed effect models and utilized Hausman specification tests to validate the consistency and efficiency of the fixed effect model against the random effect model. To address endogeneity, a two-step robust GMM methodology was applied. Results revealed intriguing findings: board gender diversity and meetings had a negative and insignificant impact on ESG performance, while non-executive directors had a detrimental and significant effect. Conversely, board size, educational background, CEO dual roles, and independent board members positively and significantly influenced ESG performance in these automobile companies. Given the significant impact identified, it is recommended to reconsider the composition of non-executive directors. A more balanced approach could mitigate the observed detrimental effect on ESG performance.

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来源期刊

Asia Pacific Management Review MANAGEMENT-

CiteScore

8.00

自引率

4.50%

发文量

期刊介绍： Asia Pacific Management Review (APMR), peer-reviewed and published quarterly, pursues to publish original and high quality research articles and notes that contribute to build empirical and theoretical understanding for concerning strategy and management aspects in business and activities. Meanwhile, we also seek to publish short communications and opinions addressing issues of current concern to managers in regards to within and between the Asia-Pacific region. The covered domains but not limited to, such as accounting, finance, marketing, decision analysis and operation management, human resource management, information management, international business management, logistic and supply chain management, quantitative and research methods, strategic and business management, and tourism management, are suitable for publication in the APMR.