Analysis of corporate governance and corporate sustainability performance in China

Wenzhou-Kean University, College of Business and Public Management, Wenzhou, China

^* corresponding author: yuliji@kean.edu

Abstract

This study examines the relationship between corporate governance (CG) and corporate sustainability performance (CSP) in Chinese A-share listed corporations from 2016 to 2022. Using regression analysis, it explores how board attributes, executive incentives, and equity structure influence economic, environmental, and social sustainability performance. The findings show that while board attributes positively impact economic sustainability, their effects on environmental and social sustainability are mixed. Executive incentives strongly correlate with all sustainability dimensions, emphasizing the importance of aligning compensation structures with sustainability goals. Concentrated ownership positively affects economic performance but may hinder environmental sustainability. However, it marginally contributes to social sustainability. This research sheds light on the interplay between CG and CSP in China, offering insights for policymakers and corporate leaders aiming to enhance sustainability practices.