Can board environmental orientation improve U.S. firms' carbon performance? The mediating role of carbon strategy

Tantawy Moussa, Amir Allam, Said Elbanna, Ahmed Bani‐Mustafa

Research output: Contribution to journalArticlepeer-review

Abstract

Overwhelming evidence from prior research suggests a positive association between corporate board characteristics and carbon performance; however, very little is known about the mechanisms linking the two variables. This study attempts to fill this gap by developing and empirically testing a conceptual model that highlights the role of carbon strategy in the relationship between board environmental orientation (BEO) and carbon performance. We argue that BEO can directly and indirectly influence carbon performance through carbon strategy. Using structural equation modelling to analyse data consisting of 2,301 U.S. firm-year observations over the 2005–2015 period, we find that the greater the BEO is, the better its carbon performance (i.e., lower greenhouse gas emissions). The results also provide evidence of the mediating effect of carbon strategy on the relationship between BEO and carbon performance. Splitting the sample into high and low carbon-intensive industries shows a partial mediation effect in high carbon-intensive industries and a full mediation effect in low carbon-intensive industries. The findings of the study and its implications for scholars, policymakers, managers, investors, and environmentalists are discussed.
Original languageEnglish
Pages (from-to)72-86
JournalBusiness Strategy and the Environment
Volume29
Issue number1
Early online date20 Jun 2019
DOIs
Publication statusPublished - Jan 2020

Fingerprint

Dive into the research topics of 'Can board environmental orientation improve U.S. firms' carbon performance? The mediating role of carbon strategy'. Together they form a unique fingerprint.

Cite this