The influence of corporate governance practices on public sector sustainable development: A developing economy study

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Abstract

The study examines the relationship between corporate governance practices (CGPs) on the public sector’s investment in water management (IWM). The critical question addressed in the paper was how good CGPs can provide a vehicle for increasing IWM in the context of local government. The need for addressing an underinvestment gap in local government is necessitated by the surge in poor CGPs that continue to constrain efforts to attract and manage water sector investments (WSIs) (Jacobs, 2019). The study employed secondary data (2009–2019) concerning a sample of eight South African metropolitan municipalities (SAMMs) collected from the annual reports. The multivariate regression analysis is employed using the pooled ordinary least squares (POLS) and feasible generalised least squares (FGLS) models. The results revealed that gender equity and external audit outcomes had a positive and significant relationship with IWM except for human resources which shows an insignificant effect. The results have important implications for water service authorities (WSAs), the public sector, and policymakers to incorporate good CGPs for improved management of water investments to eliminate water provisioning challenges. The research findings acknowledge the degree of adherence to good CGPs requires endless attention. Future studies should focus on ensuring local municipalities comply with the existing water provisioning governance framework to eliminate shortfalls in IWM.

Keywords: Investment, Governance, Sustainable Development, Water, Sustainability

Authors’ individual contribution: Conceptualization — S.M., M.B.F., and M.S.T.; Methodology — S.M.; Investigation — S.M.; Resources — S.M. and M.B.F.; Writing — S.M. and M.B.F.; Funding Acquisition — S.M. and M.S.T.; Supervision — M.B.F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The Authors wish to express their gratitude to the Africa Centre for Sustainability Accounting and Management (ACSAM) for making the funds available to cover the publication fees.

JEL Classification: D25, O19, Q01, Q25, Q56

Received: 02.02.2022
Accepted: 24.10.2022
Published online: 26.10.2022

How to cite this paper: Mukwarami, S., Fakoya, M. B., & Tayob, M. S. (2022). The influence of corporate governance practices on public sector sustainable development: A developing economy study [Special issue]. Journal of Governance & Regulation, 11(4), 202–214. https://doi.org/10.22495/jgrv11i4siart1