Influence of country governance factors and national culture on corporate sustainability practice: An inter-country Study

Influence of country governance factors and national culture on corporate sustainability practice: An inter-country Study

Author by Dr. Grace Ogundajo

Journal/Publisher: Cogent Business & Management

Volume/Edition: 2130149

Language: English

Pages: 1 - 23

Abstract

A growing number of studies have investigated organisational-level and
sectorial-level determinants of corporate sustainability practice (hereinafter
referred to as CSP) such as Board attributes, audit committee meetings, share- 10
holders’ activism, ownership structure and sustainability-linked compensation, and
industry-type. However, most studies have been conducted at country-level, as
there have been calls to conduct investigation using intercountry evidence; therefore,
studies that focus on country-level governance factors affecting CSP are
scarce. Against this backdrop, the current study investigates country-level govern- 15
ance factors (i.e., Voice and Accountability; Political Stability and Absence of
Violence/Terrorism; Government Effectiveness; Regulatory Quality; Rule of Law; and
Control of Corruption) and national culture dimensions proposed by Hofstede (i.e.,
Power distance; Individualism; Masculinity; Uncertainty avoidance; Long-term
orientation; and Indulgence) affecting CSP in an international context of 204 oil and 20
gas firms cutting across 36 countries over a 10-year period (2011–2020). Result
from the analysis using multivariate regression, generali©sed linear models regression
and discriminant analysis reveals that the country-level governance factor
strongly promoting CSP is the rule of law, whilst four of the national culture factor
positively influence on CSP except power distance and masculinity. This current


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