Influence of board mechanisms on sustainability performance for listed firms in Sub-Saharan Africa

This study aims to examine the effects of board mechanisms (board size, board independence, board gender, board educational background, board tenure, foreign directors on board, board leadership-CEO duality, board sub-committees, frequency of board meetings and CEO power) on the sustainability performance (SP) of listed Sub-Saharan Africa (SSA) firms during 2010-2019. The study employed a two-step system generalized method of moments (GMM) estimation technique to test the hypothesised relationships among the variables. The results indicate that a positive and significant relationship exists between board tenure and environmental and economic SP. Board size and frequency of board meetings are positively linked with environmental and social SP. Additionally, the number of board sub-committees is positively correlated with social and economic SP. However, the board of directors' educational background is negatively associated with both social and economic SP. Diversely, board independence, educational background, and frequency of board meetings displayed a positive connection with the combined SP. These results suggest that board mechanisms have a significant influence on sustainability performance. Our findings offer useful insights for companies, regulatory bodies, and varied stakeholder groups in SSA countries to promote the connection between board mechanisms and SP beyond the present frontiers because it suggests thinking around specific board mechanisms that meet the demand for greater accountability for sustainability performance.