Governance and sustainability: Attractiveness, performance, and resilience in uncertain scenarios

Abstract Purpose: This study investigated the effects of structural elements of governance and sustainability practices on the economic-financial performance of organizations during periods of uncertainty. Originality/value: The research stands out for its integrated temporal analysis of these variables, explicitly focusing on the disruption caused by the pandemic. It offers valuable insights into how markets and companies adapt and how these relationships shift under uncertain conditions. Design/methodology/approach: A quantitative approach was employed using panel data regression with fixed effects. Tobin’s Q was the dependent variable, explained by corporate governance and environmental performance variables. The sample included 81 companies from 2014 to 2022. Findings: The results showed that an increase in risk significantly and negatively affects economic-financial performance, an effect that was intensified in the post-pandemic period. CEO duality and energy reduction efforts did not present a significant direct impact. ESG performance demonstrated a complex effect: while its short-term impact varies, a consistent positive relationship with Tobin’s Q is observed in the long term. Additionally, a larger board of directors was found to negatively affect performance during crisis periods. Contributions/implications: This study makes a substantial contribution to the literature by showing that previously established relationships are contingent and may change drastically in times of crisis. It highlights crucial practical implications for corporate risk management, governance structuring, and the strategic importance of ESG investment in building long-term resilience and sustainable value.