The impact of cultural factors on shareholder governance and environmental sustainability: an international context

Abstract

PurposeThis paper aims to examine the effect of the shareholder governance on environmental sustainability by the moderating effect of some cultural factors.Design/methodology/approachThe authors have studied the extent of sustainability by continent. On the other hand, the authors have conducted three empirical models that deal with the effect of shareholder governance on environmental sustainability and also with the moderating effect of cultural factors.FindingsUsing a sample of 140 countries during the year 2018, the authors find a notable and positive effect of the shareholder governance on environmental sustainability. Regarding the role of cultural factors, the authors found that the factor gender parity is more important than other factors.Practical implicationsThe findings have policy implications for governments aiming to combat environmental sustainability and shareholder governance.Originality/valueThis research has approached cultural factors in a different context, which is an eastern country, which are completely different from those of western countries. On the other hand, the subject of sustainability is not sufficiently threated in this country (Saudi Arabia).