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A literature review on corporate governance and ESG research: Emerging trends and future directions

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  • Buchetti, Bruno
  • Arduino, Francesca Romana
  • Perdichizzi, Salvatore

Abstract

Extant research emphasizes that corporate governance (CG) significantly influences environmental, social, and governance (ESG) outcomes. This paper undertakes a content analysis and reviews 91 academic articles published in 41 journals over the past 14 years (2010-2023). We examine the role of CG in ESG outcomes by focusing on CG themes, ESG indicators, theories, countries, and empirical methodologies used to address endogeneity. The findings show that several factors collectively impact ESG outcomes positively. Such factors include female directors, institutional investors, independent directors, CEO characteristics, directors' compensation, and sustainability committees. Relatedly, the findings also suggest that family ownership may potentially exert a detrimental effect on ESG performance. Despite the burgeoning evidence on CG and ESG outcomes, we highlight several understudied areas, such as directors' ESG expertise in specific ESG-related sectors and CEO tenure. Furthermore, we call for more research focusing on non-financial firms, particularly in European countries. Given the current studies' reliance on archival methodologies, we encourage future research to adopt diverse approaches, such as qualitative and mixed research methods. Finally, we discuss several research avenues, identify gaps in the literature, and outline a future research agenda.

Suggested Citation

  • Buchetti, Bruno & Arduino, Francesca Romana & Perdichizzi, Salvatore, 2025. "A literature review on corporate governance and ESG research: Emerging trends and future directions," International Review of Financial Analysis, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:finana:v:97:y:2025:i:c:s1057521924006914
    DOI: 10.1016/j.irfa.2024.103759
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    More about this item

    Keywords

    Non-financial reporting; Corporate Governance; ESG metrics; Content analysis; Literature review;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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