THE IMPACT OF THE BOARD OF DIRECTORS AS ONE OF THE ENVIRONMENTAL GOVERNANCE MECHANISMS ON THE FINANCIAL PERFORMANCE OF THE CEMENT EGYPTIAN COMPANIES

Document Type : Review Article

Authors

1 Post Grad. Student, Faculty of Environmental Studies and Research, Ain Shams University

2 faculty of commerce,Ain shams university, Cairo, Egypt

3 Higher Institute for Cooperative and Managerial Studies

Abstract

This study aims to shed light on corporate governance in general and environmental governance in particular, and the mechanisms of applying environmental governance, especially the board of directors as one of these mechanisms, and the extent of the impact of the size and independence of the board of directors, as well as the number of board meetings, on the financial performance, which was measured using the economic added value index, in industrial companies, especially the Egyptian cement companies, and this study relied on the statistical analysis of the data to test the validity of the hypotheses. The study reached a number of results, the most important of which is the commitment of Egyptian cement companies to apply the standards and mechanisms of governance, and that there is a positive impact of environmental governance mechanisms and financial performance in industrial companies. the size of the board of directors affects improving financial performance, as well as and the rate of board meetings also affects improving financial performance. While the independence of the board of directors had less impact on improving the level of financial performance in companies. The study recommended the necessity of effective application of governance in industrial companies, and work to spread the culture of governance, as well as educating industrial companies about the importance of governance, and the need to pay attention to the size of the board of directors and the qualifications of board members, as well as allowing investors and stockholders to contact the board directly.
Key words: Environmental Governance, financial performance, Economic value added

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Journal of Environmental Science
Volume 52, Issue 2 - Serial Number 2
Part 3: Environmental Economics, Law and Management:
February 2023
Pages 23-47

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