Does executive compensation and board diversity affect sustainable development performance through csi? The mediating role of internal control effectiveness

Abstract

In the context of Vietnam, this paper examines the relationship among executive compensation, board diversity, internal control, and sustainable development performance indicated by the Corporate Sustainability Index (CSI). The research sample includes 482 observations generated from 100 listed companies over the 2019 - 2023 period. With the support of SPSS software, the authors perform quantitative analysis including multiple linear regression to examine the relationships between variables. This paper concludes that all independent variables have a positive impact on the dependent variable (CSI). Moreover, the finding reveals the mediating effect of internal control on the relationship between executive compensation and sustainable development performance. In addition, while board diversity has a positive impact on executive compensation, there is no statistically significant relationship with internal controls. The importance of this research is closely aligned with the global trend of sustainable development. Therefore, the recommendations provided in this study are vital for Vietnamese companies to improve their sustainable development performance