Enhancing ESG Performance through Corporate Governance: Insights from Emerging Markets

Authors

  • Md. Abdul Kaium Masud Department of Accounting and Law, School of Business Studies, Institute of Business Administration, Karachi -75270, Pakistan; & Department of Business Administration, Noakhali Science and Technology University, Noakhali-3814, Bangladesh
  • Juichiro Sahara Department of Sustainability Management, Inha University, Incheon 22212, Republic of Korea
  • Monjura Maola Department of Business Administration, Noakhali Science and Technology University, Noakhali-3814, Bangladesh
  • Mahfuzur Rahman Department of Finance and Economics, College of Business Administration, University of Sharjah, 27272, Sharjah, UAE

DOI:

https://doi.org/10.32479/ijeep.17717

Keywords:

Environmental, Social, and Governance, Corporate Governance, Energy Industry, Energy, Board Diversity

Abstract

This study examines the impact of corporate governance on Environmental, Social, and Governance (ESG) performance, specifically within the energy sectors of leading firms in Bangladesh and India. As these regions are highly vulnerable to environmental challenges, understanding the role of governance in ESG performance becomes crucial for sustainable energy economics. Using data from the top 50 listed firms across these countries between 2019 and 2021, the research employs content analysis to evaluate ESG disclosure across 26 dimensions, focusing on aspects relevant to energy consumption and management. Findings reveal that corporate governance factors, including board size, presence of independent directors, and female directors, significantly enhance ESG performance. However, the audit committee shows no significant impact. This study emphasizes the importance of robust corporate governance structures in advancing ESG practices in emerging energy markets, offering critical insights for policymakers and corporate managers aiming to improve transparency, accountability, and sustainability in energy-driven economies. The results underscore the need for a comprehensive, region-specific ESG framework to foster sustainable corporate governance across South Asia, particularly within the energy sector.

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Published

2024-12-22

How to Cite

Masud, M. A. K., Sahara, J., Maola, M., & Rahman, M. (2024). Enhancing ESG Performance through Corporate Governance: Insights from Emerging Markets. International Journal of Energy Economics and Policy, 15(1), 47–58. https://doi.org/10.32479/ijeep.17717

Issue

Vol. 15 No. 1 (2025)

Section

Articles

License

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