Does board composition affect sustainable performance in mining industry? Evidence from India
Rahul Govind Pramani, Sandeep Goel, Rupamanjari Sinha RayPurpose
Although an extensive body of research treats corporate governance (CG) and sustainable performance (SP) separately, less attention has been paid to the assessment of SP practices and its interactions with CG in the mining industry.
Design/methodology/approach
Drawing on a sample of mining companies listed on India's National Stock Exchange's top 200 listed companies over a period of 11 years, this study first builds a SP index through content analysis of sustainability reports providing detailed descriptive analysis of SP. This is followed by panel data regression analysis through the GMM method to examine how CG mechanisms affect SP.
Findings
SP in the mining industry has increased over time, although the information on the indicators remains inconsistent. Empirical analysis further suggests that board characteristics such as size and diversity do not lead to enhanced SP.
Practical implications
The findings help identify the importance of certain CG attributes in India and other major emerging economies, where similar studies can be undertaken to determine the role of CG in enhancing responsible production of sensitive sectors such as mining.
Social implications
This study highlights inconsistent sustainability reporting, which can undermine transparency and accountability. It emphasizes the need for independent and diverse boards to drive sustainable development in this sector.
Originality/value
The SP index developed in this study provides important insights into the mining industry's sustainability reporting and contributes to the performance measurement and management literature by offering a replicable, sector-specific tool to evaluate and examine SP and its association with CG attributes.