Internationalization and multinational corporations' environmental performance : the role of corporate governance

Xuhui Peng; Jingduan Li; Huan Zhang; Dilupa Nakandala

Internationalization and multinational corporations' environmental performance : the role of corporate governance

Xuhui Peng, Jingduan Li, Huan Zhang, Dilupa Nakandala

Western Sydney University

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

3 Citations (Scopus)

Abstract

Owing to critical climate change issues, the environmental responsibility of multinational corporations (MNCs) has recently attracted considerable attention from academia. However, few studies have examined how corporate governance (CG) affects MNCs’ environmental strategies during internationalization. Therefore, informed by the Institutional and stakeholder theories, this study focuses on Fortune Global 500 MNCs and theoretically discusses and empirically tests the relationship between internationalization and MNCs’ environmental performance and the moderating effects of CG on this relationship. The results indicate that there is a positive impact of internationalization on MNCs’ environmental performance and a positive moderating effect of board independence. Moreover, additional analyses show the joint moderating effects of CG on this relationship. Our results emphasize the importance of MNCs’ environmental responsibility that focuses on global stakeholders’ demands, how board independence strengthens board attention to stakeholders’ concerns, and why the joint effects of CG enhance environmental performance. Finally, suggestions for promoting MNCs’ environmental responsibility by strengthening CG regulations targeting policymakers and MNCs are provided.

Original language	English
Article number	094057
Number of pages	15
Journal	Environmental Research Letters
Volume	18
Issue number	9
Publication status	Published - 1 Sept 2023

Bibliographical note

Publisher Copyright:
© 2023 The Author(s). Published by IOP Publishing Ltd.

Open Access - Access Right Statement

Original content from this work may be used under the terms of the Creative Commons Attribution 4.0 license (https://creativecommons.org/licenses/by/4.0/). Any further distribution of this work must maintain attribution to the author(s) and the title of the work, journal citation and DOI.

Keywords

internationalization
legitimacy
corporate governance
multinational corporations
environmental performance

UN SDGs

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

Cite this

@article{85122448d97846a28aae7ae6e63ba914,

title = "Internationalization and multinational corporations' environmental performance : the role of corporate governance",

abstract = "Owing to critical climate change issues, the environmental responsibility of multinational corporations (MNCs) has recently attracted considerable attention from academia. However, few studies have examined how corporate governance (CG) affects MNCs{\textquoteright} environmental strategies during internationalization. Therefore, informed by the Institutional and stakeholder theories, this study focuses on Fortune Global 500 MNCs and theoretically discusses and empirically tests the relationship between internationalization and MNCs{\textquoteright} environmental performance and the moderating effects of CG on this relationship. The results indicate that there is a positive impact of internationalization on MNCs{\textquoteright} environmental performance and a positive moderating effect of board independence. Moreover, additional analyses show the joint moderating effects of CG on this relationship. Our results emphasize the importance of MNCs{\textquoteright} environmental responsibility that focuses on global stakeholders{\textquoteright} demands, how board independence strengthens board attention to stakeholders{\textquoteright} concerns, and why the joint effects of CG enhance environmental performance. Finally, suggestions for promoting MNCs{\textquoteright} environmental responsibility by strengthening CG regulations targeting policymakers and MNCs are provided.",

keywords = "internationalization, legitimacy, corporate governance, multinational corporations, environmental performance",

author = "Xuhui Peng and Jingduan Li and Huan Zhang and Dilupa Nakandala",

note = "Publisher Copyright: {\textcopyright} 2023 The Author(s). Published by IOP Publishing Ltd.",

year = "2023",

month = sep,

day = "1",

language = "English",

volume = "18",

journal = "Environmental Research Letters",

issn = "1748-9326",

publisher = "Institute of Physics Publishing",

number = "9",

}

TY - JOUR

T1 - Internationalization and multinational corporations' environmental performance : the role of corporate governance

AU - Peng, Xuhui

AU - Li, Jingduan

AU - Zhang, Huan

AU - Nakandala, Dilupa

PY - 2023/9/1

Y1 - 2023/9/1

N2 - Owing to critical climate change issues, the environmental responsibility of multinational corporations (MNCs) has recently attracted considerable attention from academia. However, few studies have examined how corporate governance (CG) affects MNCs’ environmental strategies during internationalization. Therefore, informed by the Institutional and stakeholder theories, this study focuses on Fortune Global 500 MNCs and theoretically discusses and empirically tests the relationship between internationalization and MNCs’ environmental performance and the moderating effects of CG on this relationship. The results indicate that there is a positive impact of internationalization on MNCs’ environmental performance and a positive moderating effect of board independence. Moreover, additional analyses show the joint moderating effects of CG on this relationship. Our results emphasize the importance of MNCs’ environmental responsibility that focuses on global stakeholders’ demands, how board independence strengthens board attention to stakeholders’ concerns, and why the joint effects of CG enhance environmental performance. Finally, suggestions for promoting MNCs’ environmental responsibility by strengthening CG regulations targeting policymakers and MNCs are provided.

AB - Owing to critical climate change issues, the environmental responsibility of multinational corporations (MNCs) has recently attracted considerable attention from academia. However, few studies have examined how corporate governance (CG) affects MNCs’ environmental strategies during internationalization. Therefore, informed by the Institutional and stakeholder theories, this study focuses on Fortune Global 500 MNCs and theoretically discusses and empirically tests the relationship between internationalization and MNCs’ environmental performance and the moderating effects of CG on this relationship. The results indicate that there is a positive impact of internationalization on MNCs’ environmental performance and a positive moderating effect of board independence. Moreover, additional analyses show the joint moderating effects of CG on this relationship. Our results emphasize the importance of MNCs’ environmental responsibility that focuses on global stakeholders’ demands, how board independence strengthens board attention to stakeholders’ concerns, and why the joint effects of CG enhance environmental performance. Finally, suggestions for promoting MNCs’ environmental responsibility by strengthening CG regulations targeting policymakers and MNCs are provided.

KW - internationalization

KW - legitimacy

KW - corporate governance

KW - multinational corporations

KW - environmental performance

UR - https://hdl.handle.net/1959.7/uws:75165

UR - http://www.scopus.com/inward/record.url?scp=85181874585&partnerID=8YFLogxK

M3 - Article

SN - 1748-9326

VL - 18

JO - Environmental Research Letters

JF - Environmental Research Letters

IS - 9

M1 - 094057

ER -

Internationalization and multinational corporations' environmental performance : the role of corporate governance

Abstract

Bibliographical note

Open Access - Access Right Statement

Keywords

UN SDGs

Other files and links

Fingerprint

Cite this