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1 – 10 of over 2000Zeena Mardawi, Aladdin Dwekat, Rasmi Meqbel and Pedro Carmona Ibáñez
Reacting to the calls in the contemporary literature to further examine the relationship between board attributes and firms’ decisions to obtain corporate social responsibility…
Abstract
Purpose
Reacting to the calls in the contemporary literature to further examine the relationship between board attributes and firms’ decisions to obtain corporate social responsibility assurance (CSRA) through the use of pioneering techniques, this study aims to analyse the influence of such attributes together with the existence of a corporate social responsibility (CSR) committee on the adoption of CSRA using fuzzy set qualitative comparative analysis (Fs-QCA).
Design/methodology/approach
Fs-QCA was performed on a sample of nonfinancial European companies listed on the STOXX Europe 600 index over the period 2016–2018.
Findings
The study findings indicate that the decision to obtain a CSRA report depends on a complex combination of the influence of the CSR committee and certain board attributes, such as size, experience, independence, meeting frequency, gender and CEO separation. These attributes play essential contributing roles and, if suitably combined, stimulate the adoption of CSRA.
Practical implications
The study findings are important for policymakers, professionals, organisations and regulators in forming and modifying the rules and guidelines related to CSR committees and board composition.
Originality/value
To the best of the authors’ knowledge, this study represents the first examination of the impact of board attributes and CSR committees on the adoption of CSRA using Fs-QCA method. It also offers a novel methodological contribution to the board-CSRA literature by combining traditional statistical (logistic regression) and Fs-QCA methods. This study emphasises the benefits of Fs-QCA as an alternative to logistic regression analysis. Through the use of these methods, the research illustrates that Fs-QCA offers more detailed and informative results when compared to those obtained through logistic regression analysis. This finding highlights the potential of Fs-QCA to enhance our understanding of complex phenomena in academic research.
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Ali Sevilmiş, Mehmet Doğan, Pablo Gálvez-Ruiz and Jerónimo García-Fernández
The user experience during the use of activities and services is a fundamental aspect for sports managers and can provide a competitive advantage. The purpose of this study was to…
Abstract
Purpose
The user experience during the use of activities and services is a fundamental aspect for sports managers and can provide a competitive advantage. The purpose of this study was to identify the dimensions of experiential quality and the relationship of this construct with customer trust and customer satisfaction in achieving behavioral intention.
Design/methodology/approach
Using a convenience sampling technique, a total of 322 gym users in Turkey participated. A two-step approach was used to test both the model and the research hypotheses [confirmatory factor analysis (CFA) and structural equation modeling (SEM)].
Findings
The interaction quality, physical environmental quality, outcome quality and enjoyment quality were positively related to experiential quality. Similarly, the experimental quality was positively related to customer satisfaction and customer trust. Finally, customer satisfaction was related to behavioral intentions.
Originality/value
This study provides empirical evidence about the importance of experiential quality to gain a competitive advantage in the context of fitness centers.
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Diego Andrés Correa-Mejía, Jaime Andrés Correa-García and María Antonia García-Benau
This study aims to analyse the consistency between what companies say (talk) and what they do (walk) regarding the application of double materiality in their sustainability…
Abstract
Purpose
This study aims to analyse the consistency between what companies say (talk) and what they do (walk) regarding the application of double materiality in their sustainability reports.
Design/methodology/approach
Sustainability reports of 76 European companies that reported the application of double materiality and are listed in the Dow Jones Sustainability Index were studied through content analysis.
Findings
In total, 67% of the companies studied claim to apply double materiality but do not comply with the guidelines in this respect proposed by the European Financial Reporting Advisory Group. Therefore, these companies should be considered label adopters.
Practical implications
This study presents evidence of the existence of label adopters when double materiality is adopted at an early stage, meaning that regulators should seek to control compliance with the minimum requirements established for double materiality. This finding also has implications for assurers, who should consider the degree of real compliance with double materiality requirements when expressing their opinion.
Social implications
The existence of label adopters in the application of double materiality endangers the sustainable development pursued through agreements such as the Green Deal and through the Sustainable Finance policy proposed in Europe.
Originality/value
This work contributes to the emerging literature on double materiality. Unlike previous works, empirical evidence is provided on the changes that companies present in their material issues with the application of double materiality. Moreover, it confirms the existence of label adopters in the application of double materiality.
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Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford
Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford
Marta Sánchez-Sancho, Jennifer Martínez-Ferrero and Javier Perote-Peña
This paper aims to investigate the potential influence of managers on sustainability assurance. When the quality of sustainability reporting is questionable because of subsequent…
Abstract
Purpose
This paper aims to investigate the potential influence of managers on sustainability assurance. When the quality of sustainability reporting is questionable because of subsequent restatements, the authors explore whether assurance is used to enhance its credibility as a legitimization tool or as an impression management strategy. Additionally, the authors analyze how capital markets react to this potential managerial capture and, particularly, whether investors penalize this practice through the cost of capital.
Design/methodology/approach
Using an international sample from 2012 to 2016 and panel data regressions, this study relies on DICTION’s master variables of optimism and certainty to examine the impact of managers on assurance and the market’s reaction to these practices.
Findings
The study shows that some managers might use assurance as a legitimization tool rather than as a means of reinforcing the credibility of sustainability reporting. In such cases, the results reveal that investors penalize (reward) managerial influence (no influence) on assurance.
Practical implications
The new findings help companies understand that they will not improve their financing terms if investors perceive that managers have influenced assurance. Moreover, these findings emphasize the need for standardization to clarify assurance criteria and prevent managerial influence.
Social implications
Managerial influence on assurance raises doubts about its value in terms of reducing information asymmetry and especially improving investors’ decision-making.
Originality/value
The present study represents the first evidence of the potential use of assurance for non-informative purposes. The authors provide clear evidence of how investors penalize managerial influence on assurance, in contrast to the mainstream literature, which shows that this practice always improves investors’ decision-making and is rewarded.
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Hanen Khaireddine, Isabelle Lacombe and Anis Jarboui
Although the association between sustainability assurance (SA) quality and firm value has been examined in previous studies, the moderating relationship is novel in this study and…
Abstract
Purpose
Although the association between sustainability assurance (SA) quality and firm value has been examined in previous studies, the moderating relationship is novel in this study and highlights the effect of corporate environmental sustainability performance (CESP) on the relationship between SA quality and firm value. This study aims to examine whether such an effect is strengthened or weakened by eco-efficiency, as measured by ISO 14001 certification, aggregate CESP score and each individual dimension of CESP (emission reduction [ER], resource reduction [RR] and product innovation [PI]).
Design/methodology/approach
The sample includes 40 companies in Euronext Paris with the largest market capitalisations (the Cotation Assistée en Continu 40 [CAC 40] index) from 2010 to 2020. The authors apply the feasible generalised least squares regression technique to estimate all the regression models. Because observed associations may be biased by reverse causation or self-selection, the authors use the instrumental variable approach and Heckman two-stage estimation.
Findings
The results show that SA quality had a positive and significant effect on firm value. Second, the authors demonstrate that CESP, as assessed by ISO 14001 certification, has a stronger interaction with assurance quality and acting as a moderator variable. Using the ASSET4 scores, an alternative proxy for CESP, the authors find inconsistent evidence regarding the impact of CESP attributes. The CESP and ER scores are homogeneous and have a positive effect on firm value. However, the PI and RR CESP attributes are not homogenous and do not have the same interactive effect on firm value. The results are robust to the use of an instrumental variable approach and the Heckman two-stage estimation procedure.
Research limitations/implications
Policy implications: Regulators may be interested in the findings when considering current and future assurance requirements for sustainability reporting, and shareholders when considering SA as an investment choice criterion. The insights into and enhanced understanding of the incentives for obtaining high SA quality can help policymakers develop effective policies and initiatives for SA. Considering the possible improvements in sustainability performance when obtaining a high level of sustainability verification, governments need to consider mandating SA.
Practical implications
Firms receive clear confirmation of the importance of investing in SA quality. Financial markets do not evaluate SA dichotomously but reward companies with higher SA quality because of the greater credibility it provides. Firms should allocate a significant percentage of their annual budgets and other relevant resources to environmental training and development programmes to improve and maintain environmental performance. If they care about environmental issues, they must announce this by issuing sustainability reports and seeking assurance of the information disclosed. High-quality assurance not only has a significant effect on investors’ investment reliability judgements but also the perceived credibility of environmental performance fully moderates the effect of assurance on these judgements.
Social implications
This study has social implications; the authors find that the French market rewards firms that provide a high-quality assurance to guarantee the integrity of their sustainability reports. Therefore, by incorporating environmental sustainability into their financial goals, a better assurance ultimately will urge firms to move from green washing to strategic goals, which is beneficial for society. Further, firms that focus on sustainability as part of their business strategy may attract employees who engage in green behaviours at work and create a friendlier and productive environment because it gives meaning to the work they do and keeps them engaged to the level needed to perform their jobs capably.
Originality/value
This study contributes to the literature by re-examining the relationship between SA quality and firm value. It also provides new evidence on the moderating effect of CESP on the SA quality–firm value nexus. Specifically, it explores the joint effect of credibility and eco-efficiency on market confidence in sustainability information.
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Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford
Giuseppe Nicolò, Giovanni Zampone, Giuseppe Sannino and Paolo Tartaglia Polcini
This study aims to investigate the relationship between corporate sustainable development goals (SDGs) disclosure and analyst forecast quality.
Abstract
Purpose
This study aims to investigate the relationship between corporate sustainable development goals (SDGs) disclosure and analyst forecast quality.
Design/methodology/approach
The study focuses on a sample of 95 Italian-listed companies preparing the mandatory non-financial declaration (NFD) according to the Global Reporting Initiative (GRI) standards over a five-year period (2017–2021), corresponding to an unbalanced sample of 438 observations. Analyst forecast quality was proxied by earnings forecast accuracy (FA) and earnings forecast dispersion (FD), built on data retrieved from the Refinitiv database. A manual content analysis was performed on NFDs to derive an SDG disclosure score (SDGD) for each sampled company.
Findings
This study provides empirical evidence suggesting that voluntary SDG disclosure matters to the capital market in that it helps enhance the information environment of companies, evidenced by improved analyst forecast quality. In particular, this study highlighted that SDG disclosure positively influences analyst FA while negatively affecting analyst FD.
Research limitations/implications
This study focuses on the Italian context, which has idiosyncratic characteristics regarding the structure of the financial market, the composition of corporate ownership and experience in non-financial reporting practices.
Practical implications
This study indicates to corporate managers that following GRI standards may represent the right way to better integrate SDG disclosure in corporate non-financial reports and increase the relevance of such information for investors and other capital market participants.
Originality/value
To the best of the authors’ knowledge, this is the first study that empirically examines the association between SDG disclosure and analyst forecast quality.
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María Jesús Barroso-Méndez, Maria-Luisa Pajuelo-Moreno and Dolores Gallardo-Vázquez
Previous research has explored the link between sustainability disclosure and reputation but produced contradictory results. This study aims to clarify the sustainability…
Abstract
Purpose
Previous research has explored the link between sustainability disclosure and reputation but produced contradictory results. This study aims to clarify the sustainability disclosure–reputation relationship through a quantitative analysis of the correlations between these variables reported in empirical research papers. The second objective was to determine how various moderators affect the sustainability disclosure–reputation link.
Design/methodology/approach
The meta-analysis was based on a systematic review of the literature covering empirical research on the corporate sustainability disclosure and reputation relationship. A total of 92 articles were meta-analyzed to compile their findings on four extrinsic moderators: company size, ownership, stock listing status and activity sector.
Findings
The findings confirm that a significant positive correlation exists between corporate sustainability disclosure and reputation. The moderator analysis also revealed that companies’ different characteristics can explain researchers’ divergent results.
Practical implications
The results have considerable practical relevance for organizational management. First, they can motivate managers to improve and disclose their company’s social and environmental impacts to strengthen their reputation, which in turn will help accelerate the achievement of the Sustainable Development Goals. Second, the findings can ensure organizations develop disclosure and reputation management strategies adapted for each firm’s size, ownership, stock listing status and activity sector.
Social implications
The results have considerable practical relevance for organizational management. First, they can motivate managers to improve and disclose their company’s social and environmental impacts to strengthen their reputation, which in turn will help accelerate the achievement of the Sustainable Development Goals. Second, the findings can ensure organizations develop disclosure and reputation management strategies adapted for each firm’s size, ownership, stock listing status and activity sector.
Originality/value
To the best of the authors’ knowledge, this meta-analysis is the first to clarify the link between disclosure and reputation, which makes a unique contribution to the field of social and environmental accounting. A larger sample of primary research was collected, and key extrinsic moderators were examined to explain prior studies’ contradictory findings.
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