Examining the Nexus Between Sustainability Performance and Green Revenues: Evidence From Industrial Companies

This study examines the relationship between sustainability performance, eco‐friendly production, and board characteristics and their impact on the green revenues of industrial firms. Using a panel dataset of 6084 firm‐year observations from multiple countries (2018–2023), the study employs panel data analysis to assess these relationships. A dummy variable approach differentiates firms with green revenues from those without, followed by a segmented analysis of high‐ and low‐performing green firms. The results indicate that sustainability performance positively influences green revenues, while board size and diversity have negative effects. Conversely, board expertise and sustainability compensations enhance green revenues. Interestingly, the findings highlight that high‐performing green firms adopt proactive sustainability strategies, whereas low‐performing firms rely on incentives. The study contributes to the literature by providing evidence from industrial firms across developed and developing countries, offering policy implications for sustainability governance and corporate incentives.