Corporate Governance and Firm Performance: Emphasis on Environmental Sustainability Performance: Evidence from Saudi Arabia

This study explores the connection between the characteristics of the board of directors and firm performance. Additionally, it examines whether environmental sustainability performance impacts the relationship between these characteristics and firm performance. This research utilized a sample composed of 917 firm-year observations, which were obtained from firms listed in Saudi Arabia during the years 2015 and 2021, using data gathered via annual reports of the companies listed in the Saudi market; Environmental, Social, and Governance standards were gathered from the Bloomberg database. More specifically, data on business performance are gathered from the data stream. This research employs ordinary least squares regression to investigate the immediate connections between the traits of the board of directors and the company's performance. In addition, the outcomes utilize Feasible Generalized Least Squares regression as an additional evaluation method. This study finds a substantial connection between board size, board independence, board meetings, environmental sustainability performance, and firm performance. Moreover, this study found that environmental sustainability performance does not affect the relationship between corporate governance and firm performance