Governance for a Greener Future: An Environmental Sustainability Analysis of Pakistani Firms

Abstract

This research study aims to explore the association between country-level governance and the environmental sustainability of Pakistani enterprises from 2014 to 2023. The World Governance Indicator (WGI), World Bank's Development Indicator and annual reports are the data sources. This research contributes to literature by employing governance elements at the country level instead of the firm level. In this investigation, the panel data were analyzed using GMM. The results imply that features of country governance promote the environmental sustainability of enterprises operating in Pakistan. The outcomes of this research study have broad consequences for enterprises, possible local and global shareholders, governments, and management. The present study's findings revealed that governance elements at the national level boost Pakistani enterprises' environmental performance. This knowledge is also important for the global and local potential that stands to profit from the governance elements.