Corporate Governance and the Environment: What Type of Governance Creates Greener Companies?
Version of Record online: 17 MAR 2011
© 2011 The Authors. Journal of Management Studies © 2011 Blackwell Publishing Ltd and Society for the Advancement of Management Studies
Journal of Management Studies
Volume 49, Issue 3, pages 492–514, May 2012
How to Cite
Kock, C. J., Santaló, J. and Diestre, L. (2012), Corporate Governance and the Environment: What Type of Governance Creates Greener Companies?. Journal of Management Studies, 49: 492–514. doi: 10.1111/j.1467-6486.2010.00993.x
- Issue online: 9 APR 2012
- Version of Record online: 17 MAR 2011
- Accepted manuscript online: 10 DEC 2010 04:30AM EST
- agency theory;
- corporate environmental performance;
- corporate governance;
- environmental stakeholders
We build on a stakeholder–agency theoretical perspective to explore the impact of particular corporate governance mechanisms on firm environmental performance. Our empirical evidence shows that several important corporate governance mechanisms such as the board of directors, managerial incentives, the market for corporate control, and the legal and regulatory system determine firms' environmental performance levels. These results suggest that these different governance mechanisms resolve, to some extent, the existing divergence of interests between stakeholders and managers with respect to environmental activities.