CORPORATE GOVERNANCE, CORPORATE ENVIRONMENT, SOCIAL RESPONSIBILITY, AND CORPORATE VALUE: A SEQUENTIAL MEDIATION MODEL VALIDATION BASED ON SHENZHEN ENTERPRISES
DOI:
https://doi.org/10.18623/rvd.v23.5890Keywords:
Corporate Governance, Corporate Environment, Social Responsibility, Corporate ValueAbstract
This study aimed to examine the influence of corporate governance and corporate environment on corporate value and explain the sequential mediating mechanism of social responsibility underlying this effect. 585 enterprise senior and middle managers personnel covering different industries and regions in Shenzhen participated in the study. Data was collected through an online survey questionnaire. Participants completed a survey to assess corporate governance, corporate environment, social responsibility, and corporate value. PLS-SEM was used to analyze the data to test the conceptual framework. Results showed corporate governance and corporate environment positively predicted social responsibility and corporate value in enterprises in Shenzhen. Additionally, social responsibility positively affected corporate value. Further analyses confirmed the sequential mediating role of social responsibility. The findings empirically validate corporate governance and corporate environment's role to influence corporate value both directly and indirectly through implementing social responsibility initiatives in enterprises. Practical and theoretical implications are discussed.
References
Aguilera, R. V., Aragón-Correa, J. A., Marano, V., & Tashman, P. A. (2021). The corporate governance of environmental sustainability: A review and proposal for more integrated research. Academy of Management Annals, 15(2), 445–480. https://doi.org/10.5465/annals.2018.0043
Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. Accounting, Organizations and Society, 29(5–6), 447–471.
Asyik, N. F. (2024). Good corporate governance or corporate social responsibility: Which affects the firm value and performance. Cogent Business & Management, 11(1), 2378540. https://doi.org/10.1080/23311886.2024.2378540
Brown, L. D., & Caylor, M. L. (2009). Corporate governance and firm operating performance. Review of Quantitative Finance and Accounting, 32(2), 129–144.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48.
Chen, W. (2024). Environmental, social, and governance performance and corporate value: Evidence from China. Green Finance, 6(1), 1–25. https://doi.org/10.3934/GF.2024001
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In Modern Methods for Business Research (pp. 295–336).
Chung, K. H., & Pruitt, S. W. (1994). A simple approximation of Tobin's Q. Financial Management, 23(3), 70–74.
Cohen, J. (2013). Statistical power analysis for the behavioral sciences (3rd ed.). Routledge.
Deephouse, D. L., & Carter, S. M. (2005). An examination of differences between organizational legitimacy and organizational reputation. Journal of Management Studies, 42(2), 329–360.
Delmas, M. A., & Toffel, M. W. (2004). Stakeholders and environmental management practices: An institutional framework. Business Strategy and the Environment, 13(4), 209–222. https://doi.org/10.1002/bse.409
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.
Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. New Society Publishers.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325. https://doi.org/10.1086/467037
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & De Colle, S. (2010). Stakeholder theory: The state of the art. Cambridge University Press.
Gompers, P. A., Ishii, J. L., & Metrick, A. (2003). Corporate governance and equity prices. The Quarterly Journal of Economics, 118(1), 107–155. https://doi.org/10.1162/003355303321466703
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage Publications.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(2), 2–24.
Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business Ethics Quarterly, 23(1), 97–124. https://doi.org/10.5840/beq20132314
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014. https://doi.org/10.5465/amr.1995.9512280033
Jensen, M. C. (2001). Value maximization, stakeholder theory, and the corporate objective function. Journal of Applied Corporate Finance, 14(3), 8–21. https://doi.org/10.1111/j.1745-6622.2001.tb00434.x
Jensen, M. C., & Murphy, K. J. (1990). Performance pay and top-management incentives. Journal of Political Economy, 98(2), 225–264. https://doi.org/10.1086/261677
Jo, H., & Harjoto, M. A. (2011). Corporate governance and firm value: The impact of corporate social responsibility. Journal of Business Ethics, 103(3), 351–383.
Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.
Kaplan, R. S., & Norton, D. P. (2005). The balanced scorecard: Measures that drive performance. Harvard Business Review, 83(7–8), 71–79.
Khandwalla, P. N. (1977). The design of organizations. Harcourt Brace Jovanovich.
Li, M., Wei, X., Wang, S., & Liu, X. (2023). Star CEOs and ESG performance in China: An integrated institutional and upper echelons perspective. Business Ethics, Environment & Responsibility, 32(3), 879–895. https://doi.org/10.1111/beer.12579
Maignan, I., & Ferrell, O. C. (2000). Measuring corporate citizenship in two countries: The case of the United States and France. Journal of Business Ethics, 23(3), 283–297.
Miller, D., & Friesen, P. H. (1982). Innovation in conservative and entrepreneurial firms: Two models of strategic momentum. Strategic Management Journal, 3(1), 1–25.
Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience. Academy of Management Review, 22(4), 853–886.
Rappaport, A. (1986). Creating shareholder value: The new standard for business performance. Free Press.
Ringle, C. M., Wende, S., & Becker, J. M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH.
Russo, M. V., & Fouts, P. A. (1997). A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal, 40(3), 534–559. https://doi.org/10.2307/257052
Scott, W. R. (2014). Institutions and organizations: Ideas, interests, and identities (4th ed.). Sage Publications.
Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737–783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work? Indiana Business Review, 86(1), 4–8.
Turker, D. (2009). Measuring corporate social responsibility: A scale development study. Journal of Business Ethics, 85(4), 411–427.
Wang, N., Zhang, Y., Chen, Z., & Lin, L. (2022). Environmental, social, governance disclosure and corporate sustainable growth: Evidence from China. Frontiers in Environmental Science, 10, 1015764. https://doi.org/10.3389/fenvs.2022.1015764
Zhang, L. S., & Zhou, P. (2024). The impact of ESG performance on the financial performance of Chinese listed companies. Frontiers in Environmental Science, 12, 1507151. https://doi.org/10.3389/fenvs.2025.1507151
Zhang, Y., Wang, W., & Zhang, Y. (2024). Does ESG performance affect the enterprise value of heavily polluting listed companies? Sustainability, 16(7), 2826. https://doi.org/10.3390/su16072826
Zhu, Q., Sarkis, J., & Lai, K. H. (2008). Green supply chain management implications for "closing the loop". Transportation Research Part E: Logistics and Transportation Review, 44(1), 1–18. https://doi.org/10.1016/j.tre.2006.06.003
Downloads
Published
How to Cite
Issue
Section
License
I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.
I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.
Licença Creative Commons Attribution 3.0
