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Effect of board characteristics on the sustainability performance of selected JSE listed companies in South AfricaNakeng, Macheleng Vanessa January 2019 (has links)
Thesis (M.COM. (Accounting)) -- University of Limpopo, 2019 / This study examines the effect of board characteristics on environmental and social
sustainability performance. Companies‟ sustainability performance is affected by
many factors such as board composition of companies, lack of knowledge, policies
and resources of companies, competition from other companies and market trends.
The King IV Code of Corporate Governance recommends that the governing body
should comprise a balance of diversity being race and gender and independence.
Moreover, the Code states that the board of directors of companies should have a
balance of both independent members and non-independent members who should
act in the best interest of the companies. The study used a quantitative approach, and
secondary data from Johannesburg Stock Exchange (JSE), Socially Responsible
Index (SRI) listed banking and retail companies for 11 years from 2007-2017. The
study tests the relationship between board characteristics (the number of females on
board of directors); firm size (market capitalisation); board independence; and
environmental (energy usage) and social (skills development expenditure)
sustainability of JSE SRI listed firms. Results show that there is a negative and
insignificant relationship between females on board and energy usage. A positive and
a significant relationship between energy usage and board independence a positive
and an insignificant relationship between firm size (market capitalisation) and energy
usage. There is also a positive but an insignificant relationship between skills
development expenditure and female board members and a positive and significant
relationship between skills development expenditure and board independence and a
positive and an insignificant relationship between skills development and firm size
(market capitalisation). The study suggests that for companies improve their
sustainable business practices; they should consider increasing the number of
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females on their board since they have a positive influence on sustainability
performance. / Risk and Vulnerability Science Centre of the University of Limpopo
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