Abstract:

Sustainability has emerged as a central determinant of long-term corporate performance and market resilience, particularly in emerging economies where the pressures of globalisation and environmental change have intensified. This study investigates the relationship between sustainability practices and share performance among Malaysian listed companies, examining the mediating influence of board attributes on this relationship. Drawing on positivist philosophy and a deductive research approach, the study employs secondary data from 100 non-financial firms listed on Bursa Malaysia between 2017 and 2020, with analysis conducted using the autoregressive distributed lag (ARDL) modelling framework. The findings suggest that sustainability practices—particularly environmental and social initiatives exert a significant positive impact on share performance, while economic sustainability factors demonstrate more mixed effects. Furthermore, board attributes such as gender diversity, education, experience, and independence are found to play an important mediating role in strengthening the link between sustainability initiatives and market outcomes. The study provides important theoretical and practical contributions by extending stakeholder and agency theories to a developing economy context and offering evidence-based insights for policymakers, investors, and corporate leaders in Malaysia. The results underline the necessity for robust governance structures to translate sustainability engagement into tangible financial returns, thereby positioning sustainability not as a cost but as a strategic investment.

Keywords: Sustainability, Investment, Board members, Share Prices

Please choose your submission type: Full Paper

Primary Track: Sustainable and Responsible Business

Keywords: responsible business;economics;technology/digital business);CSR;secondary research/concept paper

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Dr. SINBL HAWRO YAKOOB