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Managerial practices and firms' environmental performance: An international evidence

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  • Thang Ngoc Doan
  • Chi Thi Kim Vu

Abstract

This study investigates the impact of managerial practices on environmental performance using firm‐level data from Eastern European and Central Asian regions collected during the 2019–2020 period through the World Bank Enterprise Surveys. Utilizing principal component analysis, we evaluate managerial practices across four key dimensions: targets, monitoring, incentives, and operations. Concurrently, we assess environmental performance through indicators encompassing energy efficiency, energy intensity, and disclosure practices. Our empirical findings highlight a strong correlation between higher scores in managerial practices and improved environmental performance within firms. These positive effects are transferred through environmental targets and adoptions, with moderation observed based on firm size. Robustness is evident in our results across various measures of environmental performance and managerial practices, as well as when accounting for potential endogeneity issues. This research offers valuable insights with implications for both policy development and managerial decision‐making, fostering sustainability and responsible practices.

Suggested Citation

  • Thang Ngoc Doan & Chi Thi Kim Vu, 2024. "Managerial practices and firms' environmental performance: An international evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(6), pages 6083-6102, November.
    • Handle: RePEc:wly:corsem:v:31:y:2024:i:6:p:6083-6102
    DOI: 10.1002/csr.2910
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