NEXUS BETWEEN CORPORATE GOVERNANCE, CORPORATE SUSTAINABILITY, AND FIRM PERFORMANCE: EVIDENCE FROM PAKISTAN STOCK EXCHANGE

Abstract

This study investigates the impact of corporate governance (CG) on organizational performance (OP), with corporate sustainability (CS) serving as a mediating factor, focusing on construction companies in Peshawar, Pakistan. CG is treated as the independent variable, OP as the dependent variable, and CS as the mediator. Data was collected through a Likert scale questionnaire from 70 respondents out of 150 employees and employers of Peshawar's construction companies, using convenient sampling. Results reveal a significant positive relationship between CG and OP, with CS fully mediating this relationship. The findings underscore the importance of integrating CS dimensions for enhancing OP in Peshawar's construction sector. This study contributes to existing knowledge by elucidating the mediating role of CS between CG and OP, offering valuable insights for investors, managers, and regulators aiming to enhance OP in emerging markets through robust CG frameworks and sustainable development practices.