Board oversight of cybersecurity and data governance: Implications for sustainable corporate governance in the era of digitalization
This study aims to empirically advance understanding of how cybersecurity and data governance oversight influence board-level sustainable corporate governance outcomes in the context of digitalization. Drawing on agency theory, stakeholder theory, and resource dependence theory, the study develops an integrative conceptual framework directly linking board cybersecurity oversight to environmental, social, and governance (ESG) performance, with digital risk governance quality as a process-based mediating mechanism, and regulatory pressure (REG) as a moderating institutional condition. The hypotheses are tested using large-sample longitudinal panel data for firms observed over the period 2018–2023. Fixed-effects regression models with robust standard errors and mediation analysis are employed. The results show that board cybersecurity and data governance oversight are consistently positively associated with ESG performance. Digital risk governance quality partially empirically mediates this relationship, indicating that board oversight enhances sustainable governance outcomes both directly and indirectly through improved digital organizational risk governance processes. Robustness analyses using governance and social ESG pillars confirm the empirical stability of the findings. The study provides new empirical evidence that cybersecurity and data governance constitute strategic board responsibilities with significant sustainability implications in the digital era. It highlights digital risk governance as a key previously underexplored governance mechanism linking board-level cybersecurity oversight to ESG performance. The study further contributes by demonstrating the mediating role of digital risk governance quality and the moderating role of REG, thereby clarifying how and under what conditions board cybersecurity oversight influences sustainable corporate governance outcomes.