Tawiah, Vincent and Matemane, Reon and Oyewo, Babajide and Lemma, Tesfaye T (2023) Saving the environment with indigenous directors: Evidence from Africa. Business Strategy and the Environment, 33 (3). pp. 2445-2461. DOI https://doi.org/10.1002/bse.3603
Tawiah, Vincent and Matemane, Reon and Oyewo, Babajide and Lemma, Tesfaye T (2023) Saving the environment with indigenous directors: Evidence from Africa. Business Strategy and the Environment, 33 (3). pp. 2445-2461. DOI https://doi.org/10.1002/bse.3603
Tawiah, Vincent and Matemane, Reon and Oyewo, Babajide and Lemma, Tesfaye T (2023) Saving the environment with indigenous directors: Evidence from Africa. Business Strategy and the Environment, 33 (3). pp. 2445-2461. DOI https://doi.org/10.1002/bse.3603
Abstract
We build on and extend the literature on corporate governance and sustainability by examining whether indigenous directors (IDs, hereinafter) shape corporate environmental performance (CEP, hereinafter). Drawing insights from image motivation, resource dependence, and critical mass theories, we develop models that link IDs with CEP. Analyzing 1,372 firm‐year observations extracted from firms listed on the Johannesburg Securities Exchange (JSE, hereinafter), for the period spanning from 2015 to 2021, we provide robust evidence that IDs are positively associated with a firm's environmental performance and the association is driven primarily by non‐executive and female IDs. In additional analyses, we demonstrate that a token appointment of IDs to a firm's board would not have an impact on CEP, while the appointment of a “critical mass” of IDs promotes CEP. We also find that a higher percentage of IDs on a firm's board increases corporate financial performance (CFP, hereinafter) and reinforces the positive impact of CEP on CFP. Our findings suggest that appointing a higher proportion of IDs to a firm's board promotes both the financial as well as the environmental performance of the firm. Thus, companies could exploit the virtues of especially non‐executive and female IDs to promote corporate environmental sustainability.</jats:p>
Item Type: | Article |
---|---|
Uncontrolled Keywords: | board diversity; environmental performance; environmental sustainability; indigenous directors; racial representation |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 23 Jan 2024 14:11 |
Last Modified: | 13 Mar 2024 13:56 |
URI: | http://repository.essex.ac.uk/id/eprint/36924 |
Available files
Filename: Saving the environment with indigenous directors-plaintext 09152023 (1).pdf
Embargo Date: 7 November 2025