The effect of the quality of environmental dimensions on the performance of business units according to the mediating role of corporate governance

With the increase of companies and the conflict over the use of natural resources and the resulting pollution, the environment has become very vulnerable. Currently, this issue has become a global and challenging issue. With the support of the shareholders and their concern about the impact of the companies' activities on the environment, the performance of the companies has undergone changes. Therefore, the aim of this research is to investigate the effect of the quality of environmental dimensions on the performance of business units with regard to the mediating role of corporate governance. The statistical population of the current research is all the companies admitted to the Tehran Stock Exchange and the statistical sample includes 202 listed companies (2020 companies) in a 10-year period. In order to inferential analysis of the findings, structural equations modeling (SEM) of partial least squares (PLS) method version 3 were used. The findings showed that environmental dimensions have a positive and significant effect on the performance of business units and corporate governance. In addition, corporate governance has a significant effect on the performance of business units. Finally, corporate governance as a mediating variable has an effect on the relationship between environmental dimensions and the performance of business units, and its (partial) mediating role is confirmed. The results show that with the increasing attention of companies to environmental issues and preservation and non-damage to the environment, shareholders and investors react positively to these companies. This positive view can greatly improve the performance of companies.