Developing a Comprehensive Model of Determinants of Corporate Performance Sustainability on the Tehran Stock Exchange: A Meta-Analytic Approach
Keywords:
Corporate sustainability, panel data, Tehran Stock Exchange, governance, innovation capacity, CSR, institutional quality, econometric modelingAbstract
This study aims to develop an integrated and empirically validated model of the determinants of corporate performance sustainability among firms listed on the Tehran Stock Exchange. This research employed a descriptive-analytical design combining a meta-analytic review of global and regional sustainability studies with a quantitative econometric framework using panel data from 120 firms listed on the Tehran Stock Exchange between 2015 and 2024. Sustainability performance was operationalized through a composite index reflecting economic, social, and environmental dimensions. Independent variables included structural characteristics, market indicators, governance and managerial attributes, and macroeconomic conditions. Data were extracted from audited financial statements, sustainability disclosures, and national and international macroeconomic sources. Fixed-effects, random-effects, and instrumental variable (2SLS) regressions were estimated to identify causal relationships, supported by diagnostic tests for endogeneity, heteroskedasticity, and multicollinearity. Structural equation modeling (SEM) using SmartPLS validated the measurement and structural constructs. Results revealed that firm size, age, ownership concentration, board independence, managerial experience, innovation capacity, CSR expenditure, market competition, and GDP growth significantly enhanced sustainability performance. Inflation and unemployment demonstrated negative but variably significant effects, while financial leverage and CEO duality were not significant predictors. Political stability and regulatory quality exhibited consistently strong positive effects across models. The 2SLS results confirmed the robustness of major relationships, indicating no substantial endogeneity bias. SEM analysis supported the reliability and validity of all constructs and confirmed the structural pathways identified in the regression models. Corporate sustainability performance on the Tehran Stock Exchange is shaped by a multidimensional interplay of organizational characteristics, governance quality, innovation capacity, market dynamics, and institutional conditions, underscoring the need for integrated policy frameworks and strategic investments supporting sustainable development.
Downloads
References
1. Foundation I. IFRS S1: General requirements for disclosure of sustainability-related financial information and IFRS S2: Climate-related disclosures. London: IFRS Foundation, 2023.
2. Adams CA. Sustainability reporting and value creation: Insights from global practices. Journal of Business Ethics. 2022;177(3):489-507. doi: 10.1007/s10551-021-05060-y.
3. Li W, Xu Y, Zhou H. ESG disclosure and cost of capital: Evidence from China. Sustainability. 2023;15(8):6120. doi: 10.3390/su15086120.
4. Babaei A, Safari M, Tavakoli A. The effect of sustainability performance on firm value: Evidence from Iran. Journal of Accounting and Auditing Review. 2021;28(2):75-98.
5. Mirzaei H, Jorfi H, Alikhani M. Corporate social responsibility disclosure and brand reputation: Evidence from Tehran Stock Exchange. Iranian Journal of Management Studies. 2018;11(4):789-812.
6. Porter ME, Kramer MR. Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review. 2006;84(12):78-92.
7. Ardabili FS, Verbenko G, Cajnko P. The effects of organizational agility on organizational performance: the mediating role of ambidexterity. Journal on Innovation and Sustainability RISUS. 2025;16(2):114-23. doi: 10.23925/2179-3565.2025v16i2p114-123.
8. Asbeetah Z, Alzubi A, Khadem A, Iyiola K. Harnessing Digital Transformation for Sustainable Performance: Exploring the Mediating Roles of Green Knowledge Acquisition and Innovation Performance Under Digital Transformational Leadership. Sustainability. 2025;17(5):2285. doi: 10.3390/su17052285.
9. El Mokadem M, Khalaf M. Building sustainable performance through green supply chain management. International Journal of Productivity and Performance Management. 2025;74(1):203-23. doi: 10.1108/IJPPM-02-2024-0113.
10. Jan SQ, Junfeng J, Iqbal MB, Raza A, Naz M, Bhatt TK. The impact of entrepreneurial ecosystems and sustainable digital innovation on business performance: a study of Gilgit-Baltistan Pakistan. Frontiers in Sustainability. 2025;6:1485680. doi: 10.3389/frsus.2025.1485680.
11. D’Ornay A, A.Rm S, Natsir U. Strategies for Sustainable Employee Performance in the Post-Pandemic Era: A Qualitative Approach. Jurnal Ilmiah Manajemen Kesatuan. 2025;13(2):1239-52. doi: 10.37641/jimkes.v13i2.3361.
12. Orazalin N, Mahmood M, Narbaev T. The impact of sustainability reporting on firm performance in the Russian energy sector. Energy Policy. 2021;156:112423. doi: 10.1016/j.enpol.2021.112423.
13. Shakil MH, Munim ZH, Zamore S, Tasnia M. Sustainability and financial performance of transport and logistics firms: Does board gender diversity matter? Journal of Sustainable Finance & Investment. 2024;14(1):100-15.
14. Maravilla VS, Flores G. Entrepreneurial Competency, Resilience, and Financial Literacy: Drivers of Sustainable Performance in SMEs for Societal Welfare. Jssew. 2025;2(2). doi: 10.61511/jssew.v2i2.2025.1374.
15. Tahir AH, Umer M, Nauman S, Abbass K, Song H. Sustainable development goals and green human resource management: A comprehensive review of environmental performance. Journal of Environmental Management. 2024;370:122495. doi: 10.1016/j.jenvman.2024.122495.
16. Mohamed EG. The Role of Sustainability Index Performance in Moderating the Impact of Investor Sentiment on Stock Returns. 2025:195-212. doi: 10.4018/979-8-3373-2858-4.ch008.
17. Shuhui J, Chen K. Multidirectional analysis for sustainable development: An examination of sustainable policies, corporate social responsibility, and organizational performance. Sustainable Development. 2024. doi: 10.1002/sd.2907.
18. Shawabkeh KMA. The Impact of Strategic Orientations on Sustainable Performance: The Moderating Role of Business Intelligence at Jordanian Commercial Banks. Journal of Intelligence Studies in Business. 2024;14(1):13-30. doi: 10.37380/jisib.v14.i1.2486.
19. Zen A, Ali H, Sastrodiharjo I, Hidayat WW. The Effect of Organizational Commitment, Organization Funding, and Intervening Organizational Performance Towards Organizational Sustainability (On Islamic Boarding). East Asian Journal of Multidisciplinary Research. 2024;3(2):607-16. doi: 10.55927/eajmr.v3i2.8290.
20. Mazidi Sharafbadi M. The Impact of Green Human Resource Management on Sustainable Development Performance with the Role of Organizational Legitimacy, Organizational Competition, and Responsible Leadership: Payame Noor University, Yazd Center; 2025.
21. Khaledian N, Razzaghzadeh S, Haghbayan Z, Völp M. Hybrid Markov chain-based dynamic scheduling to improve load balancing performance in fog-cloud environment. Sustainable Computing: Informatics and Systems. 2025;45:101077. doi: 10.1016/j.suscom.2024.101077.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Hamid Ebrahimpour (Author); Abbas Ali Pouraghajan
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
