The International Firm Characteristics of Sustainable Performance

Thumbnail Image
Issue Date
Journal Title
Journal ISSN
Volume Title
Sustainability is an important concept currently in society which encompasses social, economic and environmental aspects. Incorporating sustainability in business practices is important for society in order to reduce environmental pollution and to decrease social problems caused by firms. The focus of this research is on international firms because they directly and indirectly contribute to 20% of the pollution (Concalves, 2020) and cause social problems in countries they are active in. This research focusses on the environmental and social side of sustainability, and not the economic side. This research identifies relevant determinants of sustainable performance to contribute to the theoretical knowledge of sustainable performance and to give policy implications to increase sustainable performance. Six important determinants of sustainable performance are derived from the literature to see whether they apply to a sample of international firms. This sample consists of firms within the STOXX 600 Europe. A fixed effects regression model indicates that Innovative Capacity and Share of Female Directors has a positive significant effect on Sustainable Performance. Policy makers or CEO’s can use these findings, for example to create policy that increases innovation or the presence of female directors in the board which then in turn also increases sustainable firm performance.
Faculteit der Managementwetenschappen