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This study investigates the relationship between the level of sustainability reporting and sector's performance (operational, financial and market) in Middle East and North African countries (MENA) region.

Using data culled from 316 observations from seven different sectors located in 11 countries for 10 years (2008–2017), an independent variable derived from environmental, social and governance (ESG) score are regressed against dependent performance indicator variables (return on assets [ROA], return on equity [ROE] and Tobin's Q [TQ]). Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.

The findings elicited from the empirical results that there are differences in the impact of sustainability reporting (ESG) on firm's operational performance (ROA), financial performance (ROE) and market performance (TQ) between the sectors in the MENA region.

The model in this study presents a valuable analytical framework for exploring sustainability reporting as a driver of performance in MENA economies. In addition, since this study contributes to the literature of sustainability accounting by a systematic depiction of cross-sectorial ESG reporting, this study establishes a benchmark to guide to firms wishing to adopt sustainability reporting.

This study investigates the relationship between the level of sustainability reporting and Food Industry Performance (operational, financial and market).

Using data culled from 1426 observations from 31 different countries for ten years (2008–2017), an independent variable derived from environmental, social, and corporate governance (ESG) score is regressed against dependent manufacture performance indicator variables [return on assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.

The findings elicited from the empirical results demonstrate that there is a significant relationship between ESG and financial performance (ROE). However, there is no significant relationship between ESG and operational performance (ROA) and market performance (TQ).

This paper presents a new framework that considers sustainability reporting as an innovation tool, examining innovation in terms of its positive or negative impact on financial performance. It contributes to research on the innovation paradigm and knowledge management by highlighting the significance of sustainability reporting as a tool of innovation in enhancing the financial performance.

Sustainability reporting has been widely adopted by firms worldwide given stakeholders’ need for more transparency on environmental, social and governance (ESG) issues. This study aims to investigate the relationship between ESG and bank’s operational (return on assets [ROA]), financial (return on equity [ROE]) and market performance (Tobin’s Q) in a group of emerging countries in the Middle East and North Africa (MENA) region.

This study examines 59 banks listed on the stock exchanges of MENA countries over a period of 10 years (2008-2017). Only conventional banks with all data for at least two years are included in the sample. The core independent variable is ESG scores, and the dependent variables are ROA, ROE and Tobin’s Q. This study uses bank- and country-specific control variables to measure the relationship between sustainability reporting and bank’s performance.

The findings from the empirical results demonstrate a significant positive impact of ESG on performance and economic benefits to shareholders. However, the relationship between ESG disclosures varies individually; unlike the majority of published research, the authors found that social performance plays a negative role in determining bank’s profitability and value. Furthermore, the authors present evidence in support of the impact of bank- and country-specific factors in determining bank’s performance.

To the best of the authors’ knowledge, this is the first study to investigate the impact of sustainability reporting on banks’ performance in the MENA region. It provides evidence that questions the positive relationship between sustainability reporting and financial measures of performance.

In a knowledge economy, it is generally agreed that audit committees play a significant role in supporting the overall firm’s knowledge, particularly enhancing the reporting process. In this respect, this paper aims to examine the effect of audit committee characteristics on intellectual capital efficiency.

This study examined 59 banks for five years (2011-2015), obtaining 295 observations. The study’s independent variable is audit committee characteristics. The dependent variable is intellectual capital components (Human: human capital efficiency [HCE]; Structural: structural capital efficiency [SCE]; Relational: relational capital efficiency [RCE]; and Physical/Financial: capital employed efficiency [CEE]). In addition, the study used four bank-specific control variables.

The findings deduced from the empirical results demonstrate that there is a significant positive impact of audit committee characteristics on intellectual capital. Moreover, the relationship between audit committee and intellectual capital components (HCE, SCE, RCE and CEE) also has a significant positive relationship if measured individually.

The study provides insights about the relationship between audit committee characteristics and the improvement in intellectual capital efficiency, which might be used by firms to re-arrange the roles within audit committee, to reassign internal priorities and to escalate position in their environment.

This study investigates the relationship between the level of sustainability disclosure and telecommunication and information technology (IT) sectors' performance (operational, financial and market).

Using data culled from 4,458 observations from 60 different countries for 10 years (2008–2017), an independent variable derived from environmental, social and governance (ESG) score are regressed against dependent manufacture performance indicator variables [return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ)]. Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.

The findings elicited from the empirical results demonstrate that there is a significant negative relationship between ESG and market performance (TQ). However, there is no significant effect of ESG on both operational (ROA) and financial performance (ROE). Moreover, the findings elicited from the partial least square structural equation modeling the relationship between ESG and ROA is stronger in emerging than in developed economies.

The authors' opinion for policy makers is that it is essential to promote and implement the appropriate legislative framework for sustainability reporting, which should enhance both the sustainability practices as well the profitability of IT firms.

The model in this study presents a valuable analytical framework for exploring sustainability disclosure as a driver of performance in telecommunication and IT sectors' economies. In addition, this study highlights telecommunication and IT sectors' management lacunae manifesting in terms of the weak nexus between each component of ESG and IT sectors' performance.

This study investigates the impact of sustainability reporting on agriculture industries’ performance (operational, financial and market).

Using data culled from 1426 observations from 31 different countries for ten years (2008–2017), an independent variable derived from the Environmental, Social and Governance (ESG) score is regressed against dependent manufacture performance indicator variables [return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ)]. Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.

The findings elicited from the empirical results demonstrate that there is no significant relationship between ESG and operational performance (ROA), financial performance (ROE) and market performance (TQ). Surprisingly, when each component of ESG is regressed separately against the performance, the results reveal that governance disclosure has a positive impact on market performance.

This study captures only quantity rather than the quality of ESG disclosure. Therefore, the results of this study may not necessarily give the “true” motivation for firms to disclose sustainability activities.

This study highlights the agriculture industry management lacunae manifesting in terms of the weak nexus between each component of ESG and agriculture industries’ performance.

This study aims to examine the moderating role of a country's economic activities and institutional quality (IQ) on the relationship between corporate social responsibility disclosure (CSRD) and banks' operational, financial and market performance.

This study examines 245 banks from emerging markets for 13 years (2008–2020), yielding unbalanced panel of 1899 bank-year observations. The independent variable is CSRD. The dependent variables are return on asset (ROA), return on equity (ROE) and Tobin Q. The authors used ordinary least square (OLS), panel fixed-effect and instrumental variables-generalized method of moments (IV-GMM) to estimate the parameters of the models.

The authors find that the CSRD scores negatively influence banks’ performance. The moderator of CSRD and the level of economic activities have a positive relationship with banks' performance. However, the moderator (CSRD and IQ), while showing positive relationship with banks' performance, has a significant effect only on banks' operational and financial performance.

This study provides new evidence on the ways in which economic performance and IQ (IQ) influence the CSRD practices of banks in emerging markets.

The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-11-2020-0757.

Intellectual capital (IC) plays a pivotal role in the high-tech and knowledge-based economic sectors. With the emergence of FinTech, which, with respect to the banking sector, is merging high-tech with the k-economy, there is an emerging need to highlight the importance and understand the dynamics of bank IC. With respect to Gulf Cooperation Council (GCC) economies, where FinTech has become de rigueur, banking is bifurcated into Islamic and banking sectors. Through comparative empirical analysis, the purpose of this paper is to examine IC efficiency in Islamic and conventional banks with a view to elucidating the impact of IC, in aggregate and decomposed into its components, on an operational, financial and market performance of Islamic banks juxtaposed with conventional banks.

Using data collected from 59 banks for five years (2012-2016) involving 295 observations, an independent variable derived from the modified value added IC (MVAIC) components are regressed against dependent bank performance indicator variables [Return on Assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: bank-specific and macroeconomic.

The findings elicited from the empirical results demonstrate that there is positive relationship between IC efficiency and financial performance (ROE) and market performance (TQ) in Islamic banks. In conventional banks, however, there is a positive relationship between IC and operational performance (ROE) and financial performance (ROE).

The model in this paper presents a valuable analytical framework for exploring IC efficiency as a driver of performance in dual-sector banking economies characterized by co-existence of Islamic and conventional financial institutions. In addition, this paper highlights bank management lacunae manifesting in terms of the weak nexus between: IC and asset efficiency (ROA) in Islamic banks and IC and market value (TQ) in conventional banks.

The purpose of this paper is to provide a comparison between manufacturing and banking sectors with regards to the level of sustainability reporting (environmental, social and governance (ESG)) and its impact on operational, financial and market performance.

The research is quantitative, based on pooled data analysis of 932 manufactures and 530 banks listed on 80 countries for ten years from 2008 to 2017 ending up with 11,705 observations. A multivariate model is used to investigate the impact of sustainability reporting (ESG) on a firm’s performance. The theoretical model is built on agency, legitimacy, resources and stakeholders’ theories. The practical model is built on independent variable (ESG) and the dependent variables (return on assets, return on equity and Tobin’s Q).

The findings deduced from the empirical results on one hand demonstrated that ESG positively affect the operational, financial and market performance in the manufacturing sector. However, on the other hand, the ESG negatively affect the operational, financial and market performance in the banking sector.

This research makes a contribution to the scarce literature and compares the level of sustainability reporting and its impact on performance in both the manufacturing and banking sector which are two of the major and important sectors in the global financial markets.