Board Attributes and Sustainability Performance: Evidence on Temporal Dynamics of Board Effectiveness

ABSTRACT

This study examines how board effectiveness influences corporate sustainability by accounting for the temporal dynamics through which board attributes affect sustainability outcomes. Analyzing a balanced panel of 1091 listed firms from the world's five largest economies over the period 2016–2024, the study employs fixed effects regressions to estimate the contemporaneous ( t ) and lagged effects ( t  + 1, t  + 2). Results reveal a differentiated temporal pattern: board gender diversity and sustainability committees yield contemporaneous, persistent positive impacts, while the influence of board size emerges only over longer time horizons. Conversely, board independence remains consistently insignificant. Theoretically, the study extends the predominantly static treatment of governance theories by demonstrating that different governance mechanisms operate through distinct temporal pathways, with general board structural attributes requiring gestation periods before their impact materializes. Practically, we recommend that regulators should shift toward mandates that structurally embed sustainability expertise and functional committee oversight within board processes. Managerially, firms must utilize sustainability committees as strategic conduits to bridge the information gap for independent directors. By incorporating a temporal lens, the research reconciles mixed prior evidence and offers a novel framework for evaluating the long‐term efficacy of corporate governance in driving sustainability.