Strategic Governance for Sustainable Performance: ESG Impacts of Board and Financial Structures in International Logistics

This study examines how board structures and financial factors relate to sustainability performance within international logistics. Focusing on the “Freight and Logistics Services” sub-sector, we compile annual data for 62 firms from 19 countries over 2016–2023 drawn from Refinitiv Eikon. Sustainability performance is operationalized by the standardized composite ESG (environmental, social, and governance) score (0–100), which enables cross country comparability in a disclosure-based setting. We estimate firm fixed effects models with year fixed effects and, for comparison, random effects and pooled ordinary least squares (OLS) specifications. Results show that board independence and the presence of a board level corporate social responsibility (CSR) committee are positively associated with ESG performance, while CEO duality is negatively associated consistent with the view that role consolidation weakens stakeholder-oriented oversight. Evidence on board gender diversity is specification sensitive: it is positive in pooled OLS but loses statistical significance when firm heterogeneity is modeled. Turning to profitability or return on assets (ROA), CEO duality is negatively related to ROA, whereas gender diversity is positively related; in contrast, independence and CSR committee do not display direct effects on ROA, suggesting possible indirect channels via ESG. Financial covariates such as firm size and profitability are positively associated with ESG scores, and leverage reduces ROA as expected. By providing sub-sector specific evidence with a standardized ESG measure, the study informs governance reforms in logistics—prioritizing CEO–chair separation, institutionalizing CSR committees, and cultivating gender diverse boards— to strengthen sustainability outcomes and long run value creation.