The Impact of Corporate Governance Mechanisms on Sustainable Development with its Social Responsibility Dimension in the Arab Gulf Cooperation Council Counties 10.35781/1637-000-113-004

Abstract

The study aimed to examine the impact of board of directors' characteristics as a corporate governance mechanism, represented by board size, board independence, board expertise, number of board meetings, and gender diversity on the implementation of the social dimension of sustainable development in companies listed on the stock markets of Gulf Cooperation Council (GCC) countries. To achieve this purpose, a quantitative research approach was adopted and estimated to interpret information collected from the Refinitive database. The data was collected from 366 companies listed in the GCC stock market of the Gulf Cooperation Council countries for the period from 20213 to 2022, consisting of 3660 firm-year observations. Panel data analysis with ordinary Least Square Regression was conducted to estimate the results. The results show that board independence is a significant positive determinant of the implementation of the social dimension in GCC companies. In the same context, the results show that board diversity and expertise significantly and positively influence the level of the social dimension in the majority of the GCC companies. However, there is a variation in the effect of board size and diligence on the level of the social dimension in the GCC companies. Finally, the results reveal that sustainability committees significantly and positively influence the level of the social dimension implementation in the GCC companies except in the case of Bahrain and Qatar. The study provides a novel contribution to the body of literature. The study provides insights into the effect of board characteristics on the social dimension implementation, highlighting a critical aspect of sustainable development that needs attention from company boards and policymakers.