Nexus between institutional quality and corporate sustainable performance: European evidence

ABM Fazle Rahi; Mohammad Ashraful Ferdous Chowdhury; Jeaneth Johansson; Marita Blomkvist

doi:10.1016/j.jclepro.2022.135188

Nexus between institutional quality and corporate sustainable performance: European evidence

ABM Fazle Rahi^*
, Mohammad Ashraful Ferdous Chowdhury
, Jeaneth Johansson
, Marita Blomkvist

^*Corresponding author for this work

Interdisciplinary Research Center for Finance and Digital Economy

Research output: Contribution to journal › Article › peer-review

56 Scopus citations

Abstract

By analysing 796 companies' data from 21 European countries, this research uncovered the nexus between institutional quality (IQ) and corporate sustainable performance (CSP). The relationship was theoretically examined with the lens of institutional theory and then empirically tested. The findings show that IQ has a positive and significant impact in safeguarding CSP, and firms’ characteristics play an essential preamble in this regard. We additionally found the heterogeneous impact of IQ on CSP. To come to a conclusion, we have applied random effect, two-step system GMM and quantile regression models. Our findings are consistent and empirically robust; therefore, the study disseminates key messages to policymakers and practitioners about the role of IQ in safeguarding CSP.

Original language	English
Article number	135188
Journal	Journal of Cleaner Production
Volume	382
DOIs	https://doi.org/10.1016/j.jclepro.2022.135188
State	Published - 1 Jan 2023

Bibliographical note

Publisher Copyright:
© 2022 The Authors

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure
SDG 12 Responsible Consumption and Production

Keywords

Corporate sustainability
ESG
Europe
Institutional quality
Performance
Sustainability

ASJC Scopus subject areas

Renewable Energy, Sustainability and the Environment
General Environmental Science
Strategy and Management
Industrial and Manufacturing Engineering

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10.1016/j.jclepro.2022.135188

Cite this

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title = "Nexus between institutional quality and corporate sustainable performance: European evidence",

abstract = "By analysing 796 companies' data from 21 European countries, this research uncovered the nexus between institutional quality (IQ) and corporate sustainable performance (CSP). The relationship was theoretically examined with the lens of institutional theory and then empirically tested. The findings show that IQ has a positive and significant impact in safeguarding CSP, and firms{\textquoteright} characteristics play an essential preamble in this regard. We additionally found the heterogeneous impact of IQ on CSP. To come to a conclusion, we have applied random effect, two-step system GMM and quantile regression models. Our findings are consistent and empirically robust; therefore, the study disseminates key messages to policymakers and practitioners about the role of IQ in safeguarding CSP.",

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doi = "10.1016/j.jclepro.2022.135188",

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T1 - Nexus between institutional quality and corporate sustainable performance

T2 - European evidence

AU - Rahi, ABM Fazle

AU - Chowdhury, Mohammad Ashraful Ferdous

AU - Johansson, Jeaneth

AU - Blomkvist, Marita

PY - 2023/1/1

Y1 - 2023/1/1

N2 - By analysing 796 companies' data from 21 European countries, this research uncovered the nexus between institutional quality (IQ) and corporate sustainable performance (CSP). The relationship was theoretically examined with the lens of institutional theory and then empirically tested. The findings show that IQ has a positive and significant impact in safeguarding CSP, and firms’ characteristics play an essential preamble in this regard. We additionally found the heterogeneous impact of IQ on CSP. To come to a conclusion, we have applied random effect, two-step system GMM and quantile regression models. Our findings are consistent and empirically robust; therefore, the study disseminates key messages to policymakers and practitioners about the role of IQ in safeguarding CSP.

AB - By analysing 796 companies' data from 21 European countries, this research uncovered the nexus between institutional quality (IQ) and corporate sustainable performance (CSP). The relationship was theoretically examined with the lens of institutional theory and then empirically tested. The findings show that IQ has a positive and significant impact in safeguarding CSP, and firms’ characteristics play an essential preamble in this regard. We additionally found the heterogeneous impact of IQ on CSP. To come to a conclusion, we have applied random effect, two-step system GMM and quantile regression models. Our findings are consistent and empirically robust; therefore, the study disseminates key messages to policymakers and practitioners about the role of IQ in safeguarding CSP.

KW - Corporate sustainability

KW - ESG

KW - Europe

KW - Institutional quality

KW - Performance

KW - Sustainability

UR - https://www.scopus.com/pages/publications/85143531510

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DO - 10.1016/j.jclepro.2022.135188

M3 - Article

AN - SCOPUS:85143531510

SN - 0959-6526

VL - 382

JO - Journal of Cleaner Production

JF - Journal of Cleaner Production

M1 - 135188

ER -

Nexus between institutional quality and corporate sustainable performance: European evidence

Abstract

Bibliographical note

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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