Abstract
This study examines the impact of environmental investments (E) on the operational sustainability of companies listed on the Tehran Stock Exchange and examines the moderating role of corporate governance (G) in this regard. Given the increasing regulatory pressures and stakeholder expectations regarding social and environmental responsibility, understanding the mechanisms that translate these investments into sustainable performance is of critical importance.
The statistical population includes listed companies over a ten-year period (2013-2014) and the data are estimated using a fixed effects (FE) regression model and a system of simultaneous equations. The dependent variable (Y) represents operational sustainability (a combination of water and energy consumption and operating costs). The main independent variable is environmental investments (E) and the moderating variable is the corporate governance index (G).
The results of the baseline model showed that environmental investments have a positive and significant effect on the operational sustainability of companies. The moderation hypothesis showed that with increasing levels of corporate governance, the coefficient of the positive effect of environmental investments on operational sustainability is strengthened. This finding suggests that a strong corporate governance structure increases stakeholder confidence and improves the efficiency of environmental resource allocation. Finally, policy recommendations emphasize the need to strengthen transparency and accountability in management structures to maximize the returns from green investments.