Purpose This study aims to examine the direct and indirect effects of adopting the impact materiality (IM) principle on stock prices, with environmental performance (EP) and environmental decoupling (GAP) serving as simultaneous mediators. It further compares IM’s influence on each mediator and evaluates the relative strength of the two indirect pathways. Design/methodology/approach The analysis relies on data from the Refinitiv Eikon and Bloomberg databases, covering 487 companies from polluting sectors across 10 countries (2016–2024). Hypotheses are tested using structural equation modeling in R 4.5.1, complemented by dynamic panel analysis to address endogeneity concerns. Findings The results indicate that IM adoption increases GAP more than EP. Moreover, it exerts a positive direct effect on stock prices, partially mediated by both EP and GAP, with GAP emerging as the stronger mediator. In-depth analysis shows that EP improvements are limited to environmental innovation actions, whereas actual emissions rise. Alarmingly, 86.75% of IM’s influence on stock prices via reported emission reductions is driven by inflated and misleading disclosures. These findings suggest that the current implementation of the IM approach undermines its environmental objectives. Originality/value To the best of the authors’ knowledge, this is the first study to examine the simultaneous environmental effects of the IM principle on stock prices, offering novel evidence of its actual environmental influence. The findings reconcile and refine prior research and offer important implications for investors and Global Reporting Initiative and ESRS standard setters.
Purpose This paper aims to examine how artificial intelligence contributes to green innovation, addressing conflicting evidence about its benefits and risks. It highlights the organizational and governance conditions that shape the effectiveness of artificial intelligence in supporting sustainable innovation. Design/methodology/approach A systematic literature review and bibliometric analysis are used. The review organizes prior studies into three domains: robotics and automation, data handling and general artificial intelligence applications, while considering both supportive and critical perspectives. Bibliometric mapping identifies intellectual structures, thematic clusters, collaboration patterns and research gaps. A comprehensive artificial intelligence keyword framework ensures broad coverage and minimizes omissions. Findings The results indicate that artificial intelligence’s impact on green innovation depends strongly on organizational and contextual factors, including governance structures. Robotics and automation, data handling and general artificial intelligence applications each contribute differently to sustainability outcomes. The bibliometric analysis highlights central research networks, dominant themes and empirical gaps, providing a clear view of the field’s intellectual foundations. Practical implications Organizations can use these insights to strategically adopt artificial intelligence in ways that enhance environmental performance while mitigating governance and implementation risks. Originality/value This study integrates systematic literature review and bibliometric approaches to synthesize a fragmented literature, distinguishing between positive and critical perspectives on artificial intelligence in sustainability. It advances theoretical debates on artificial intelligence and green innovation and offers practical guidance for managers and policymakers aiming to leverage artificial intelligence for responsible value creation.
Purpose This study aims to examine how governance mechanisms and corporate strategy jointly influence corporate goodness in an emerging market characterized by concentrated ownership and mandatory corporate social responsibility regulations. Design/methodology/approach Using a panel of 397 listed firms from an emerging market (India) between 2010 and 2023, this study analyzes the impact of governance mechanisms (ownership, boards and management) and strategic investments on corporate goodness, specifically evaluating the complex interactions among these internal governance structures. Findings Advancing the governance-environment, social and governance (ESG) literature on principal-principal conflicts, the authors find promoter-dominated ownership negatively influences corporate goodness. However, strong board and management governance actively drives corporate goodness, interactively offsetting these negative ownership impacts. Furthermore, aligning with compliance-cost perspectives, corporate goodness acts primarily as a regulatory burden without complementary strategic investments. Practical implications This study reframes corporate goodness as a strategic resource, dynamically shaped by the interactions among internal governance mechanisms rather than mere regulatory compliance. It demonstrates that the interdependent relationship among ownership, boards and management serves as a vital substitute for weak investor oversight in emerging markets. Originality/value This study reframes ESG as a strategic resource shaped by internal governance rather than mere regulatory compliance, demonstrating that governance acts as a vital substitute for weak external enforcement in concentrated-ownership environments.
Purpose This study aims to investigate whether board gender diversity moderates the relationship between environmental, social and governance (ESG) performance and firm value in the French context, characterised by mandatory corporate social responsibility (CSR) reporting and gender equality legislation. Design/methodology/approach The authors apply a two-step dynamic system generalised method of moments (GMM) estimator to a sample of French non-financial companies listed on the SBF 120 index over the period 2011–2022. Findings The findings indicate that board gender diversity positively moderates the ESG performance–firm value relationship, highlighting the governance role of female directors in the specific French regulatory context. Research limitations/implications The findings are limited to the characteristics of the sample. Future research could extend this study by including firms from the financial sector and examining the ESG–firm performance relationship while considering other governance mechanisms, such as ownership structure. Practical implications The study highlights the relevance of board gender diversity as a corporate governance mechanism. For policymakers, it may be pertinent to give greater consideration to gender equality when developing the CSR regulatory framework. Originality/value This study contributes to the debate on the CSR performance–firm value relationship by providing additional evidence from the French regulatory setting on the important role of female directors in strengthening the effectiveness of ESG practices and thereby improving corporate performance.
Purpose The 2030 Agenda has increased attention toward the role of organizations in advancing sustainable development through the achievement of the sustainable development goals (SDGs). Within this context, the banking industry plays a crucial role given its ability to influence economic, social and environmental outcomes through financing and investment decisions. This study aims to examine the influence of board characteristics on banks’ SDG performance, addressing the limited evidence on the governance determinants of banks’ contribution to the SDGs. Design/methodology/approach Drawing on stakeholder-agency theory, this study investigates the effects of board size and board gender diversity on the SDG performance of 646 banks operating across 60 countries over the period 2018–2023. To address potential endogeneity concerns, the analysis uses a difference Generalized Method of Moments (GMM) estimator. Findings The results reveal that both board size and board gender diversity exert a positive and significant influence on banks’ SDG performance. The findings suggest that board composition represents an important governance mechanism through which banks can strengthen their contribution to sustainable development. Originality/value This study contributes to the literature by moving beyond SDG disclosure and examining the governance factors associated with banks’ SDG performance. Furthermore, it extends corporate governance research by identifying board size and board gender diversity as important determinants of SDG performance and provides additional support for stakeholder-agency theory in explaining how board characteristics facilitate the alignment of managerial decisions with broader stakeholder interests.
