Editorial

Emerging markets are increasingly adopting global corporate governance standards, but challenges remain in implementation due to cultural and regulatory differences. A report published by the International Finance Corporation (IFC) on corporate governance in emerging markets emphasises the need for stronger regulatory frameworks and enforcement mechanisms to improve governance practices. The digital transformation of businesses is reshaping corporate governance, with a focus on cybersecurity, data privacy and the ethical use of artificial intelligence (AI). The impact of digital transformation on corporate governance calls for updated governance frameworks to address the risks and opportunities posed by digital technologies. It is also found that there is a shift towards stakeholder capitalism, where companies are expected to balance the interests of shareholders with those of other stakeholders, including employees, customers and the community.

The present volume highlights governance and its impact on sustainable development, environmental performance and gender diversity. The article titled Configurations of Corporate Governance Mechanisms and Sustainable Development reviews how corporate governance mechanisms (e.g., board composition, executive compensation, ownership structures) influence sustainable development outcomes. It emphasises the need for participatory governance and community engagement to achieve meaningful sustainability, followed by a study on the role of board gender diversity (BGD) in moderating the relationship between environmental performance and firm value. While BGD positively impacts environmental performance, it does not significantly affect firm value. As ethics play a dominant role in governing corporate behaviour, the article titled Does Ethical Leadership Foster Employee Green Behaviour? The Mediating Role of Psychological Ownership investigates how ethical leadership and green human resource management (GHRM) influence employee green behaviour through psychological ownership. The study finds that ethical leadership and GHRM significantly impact employee green behaviour. The article titled Aligning Corporate Governance with Sustainable Development Goals highlights the importance of aligning corporate governance with the Sustainable Development Goals (SDGs). It finds that improved corporate governance is linked to better environmental performance and human development. Diversity is an important aspect of governance, and the next article titled Mapping of Women’s Representation in Corporate Governance provides a bibliometric review of the literature on women’s representation in corporate governance. It finds a positive correlation between gender diversity and corporate performance, with increasing attention to gender equity in corporate leadership. The article on The Impact of Corporate Governance Monitoring Mechanisms on Tax Avoidance examines how corporate governance mechanisms affect tax avoidance in Malaysian firms. It finds that corporate social responsibility (CSR) has a weak negative impact on tax avoidance, while foreign ownership has positive impact.

The present volume highlights sustainability and governance, gender diversity, ethical leadership and tax avoidance.