Search results

1 – 10 of over 1000
To view the access options for this content please click here
Article
Publication date: 11 October 2021

Tom Cummins, Ruby Hamid, Eleanor Reeves, Thomas Karalis and Matthew Harnett

To highlight ESG litigation risks and present an overview of the present landscape of ESG disputes in Europe – with a particular focus on England – and globally.

Abstract

Purpose

To highlight ESG litigation risks and present an overview of the present landscape of ESG disputes in Europe – with a particular focus on England – and globally.

Design/methodology/approach

This article provides an overview of ESG factors, how they impact on companies, and potential claims that can arise from ESG issues. It also provides recommendations on how companies can prepare for, respond to, and ultimately resolve ESG disputes.

Findings

The number of ESG cases that are being brought (and won) by claimants in various courts around the world is rapidly increasing. There is a need for companies to prepare for, respond to, and resolve ESG disputes that they may become party to.

Practical implications

Companies need to take notice of the growing trend of ESG disputes and claims being brought, and in particular prepare for, respond to, and resolve them.

Originality/value

Expert analysis and guidance from experienced dispute resolution and environmental lawyers.

Details

Journal of Investment Compliance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1528-5812

Keywords

To view the access options for this content please click here
Article
Publication date: 14 October 2021

Manish Bansal, Taab Ahmad Samad and Hajam Abid Bashir

This study aims to provide a convincing argument behind the mixed findings on the association between sustainability reporting and firm performance by investigating the…

Abstract

Purpose

This study aims to provide a convincing argument behind the mixed findings on the association between sustainability reporting and firm performance by investigating the possibility of a non-linear relationship through a threshold model.

Design/methodology/approach

This study used (Hansen’s 1999) threshold framework to investigate the relationship between firm performance and sustainability reporting using a sample of 210 Bombay Stock Exchange-listed firms spanning over 10 years from March 2010 to March 2019. This framework helps to test the threshold effect’s presence, estimate the threshold value and check the authenticity of the estimated threshold value.

Findings

Sustainability reporting has a differential threshold impact on the different indicators of firm performance. On the one hand, the authors’ results illustrate that the firms’ operating performance is positively impacted if and only if the sustainability reporting crosses a certain threshold. On the other hand, sustainability reporting positively impacts firms’ market performance only up to a cut-off point.

Practical implications

Managers should strive to balance sustainability reporting to reap its desired benefits on firm performance.

Originality/value

This study explores the possible non-linearity in the association between firm performance and sustainability reporting and explains the relationship’s inconclusive results. Further, this study explores the field in the novel emerging economy with unique institutional settings that mandate spending on sustainability activities.

Details

Journal of Global Responsibility, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2041-2568

Keywords

To view the access options for this content please click here
Article
Publication date: 23 August 2021

Shernaz Bodhanwala and Ruzbeh Bodhanwala

The study aims to investigate the relationship between aggregate and individual dimensions of sustainability and financial and stock market performances of the firms in…

Abstract

Purpose

The study aims to investigate the relationship between aggregate and individual dimensions of sustainability and financial and stock market performances of the firms in the travel and tourism industry (TTI) across different geographies.

Design/methodology/approach

The sample under study consists of 146 firms belonging to TTI that have consistently obtained environmental, social and governance (ESG) rating over the period 2011–2017 as a part of Thomson Reuters Asset 4 ESG database. An empirical multivariate panel data model is developed to analyse the impact of sustainability (ESG) on firm profitability and market value within three tourism-related industries (transportation, hotel and leisure).

Findings

The study extends the existing literature by investigating the impact of each of the vital dimensions of sustainability performance – ESG – and examines how each dimension would affect financial performance and market value among firms within three tourism-related industries (transportation, hotel and leisure). Among the three tourism industries, hotel industry is observed to have the highest ESG compliance, followed by the transportation industry. Based on the agency and stakeholder theory, the authors hypothesized all ESG components to have significant positive effect on the financial and stock market performance; however, the results reveal that each dimension has different impact on financial performance and market value of firms in the tourism industry.

Research limitations/implications

The study could help firms in the travel and tourism industries to understand which of the dimension of ESG activities is significantly important for their financial and stock market performance.

Originality/value

The unique contribution of this study is that it considers wider definition of the term “Sustainability” and examines the relationship between financial and stock market performances of the firms and each component of ESG. This is one of the few studies at the global level that provides much needed evidence in the area of sustainability performance by the travel and tourism firms.

Details

Social Responsibility Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-1117

Keywords

To view the access options for this content please click here
Article
Publication date: 24 August 2021

Erin Oldford, Neal Willcott and Tanner Kennie

The purpose of this paper is twofold. First, it endeavors to document the current state of environmental, social and governance (ESG) pedagogy within undergraduate finance…

Abstract

Purpose

The purpose of this paper is twofold. First, it endeavors to document the current state of environmental, social and governance (ESG) pedagogy within undergraduate finance courses of business schools, and second, it seeks to show how business schools can leverage student managed investment funds (SMIFs) to swiftly integrate ESG pedagogy.

Design/methodology/approach

The study is comprised of two sections that use different methodologies. The first part of the study involves a manual content analysis of undergraduate finance course textbooks, and related instructor materials are used to estimate the average coverage of ESG-related topics. Next, a case study of a SMIF that has recently integrated an ESG framework is provided to illustrate how this pedagogical innovation is effective in teaching ESG skills.

Findings

The findings of the content analysis of the three most commonly used textbooks in a sample of 17 Canadian universities, as well as associated instructor material, provide evidence that the primary emphasis in traditional curriculum remains on the shareholder, with little attention paid to ESG factors. The case study of an existing SMIF clearly demonstrates how a student-led development of an ESG framework provides the setting for effective, experiential learning.

Originality/value

This study shows that while traditional teaching settings, like lectures, may be slow to adapt to the rapidly changing needs of industry, nontraditional teaching venues, such as SMIFs, can be leveraged to meet industry demand for ESG skills, thereby closing the skills gap, enhancing student employability and increasing the relevance of business school education.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

Content available
Article
Publication date: 16 August 2021

ABM Fazle Rahi, Ruzlin Akter and Jeaneth Johansson

The purpose of this study is to explore the impact of sustainability (environmental, social and governance or ESG) practices on the financial performance (FP) of the…

Abstract

Purpose

The purpose of this study is to explore the impact of sustainability (environmental, social and governance or ESG) practices on the financial performance (FP) of the Nordic financial industry.

Design/methodology/approach

The study covers a sample selection of observations for a total of 152 firm-years for 39 financial companies within the Nordic region (Sweden, Denmark, Finland and Norway) for the business years including 2015–2019. Data regarding ESG and FP indicators were extracted from the Thomson Reuters Eikon database in July 2020. This is a quantitative study using regression and a generalized method of moments.

Findings

Using static and dynamic estimators, the authors found both positive and negative impacts of sustainability practice on FP. The authors identified a negative relationship between ESG practices and FP (return on invested capital, return on equity and earnings per share). The authors identified a positive relationship between governance and return on assets.

Originality/value

A key contribution to the accounting literature is the finding that there is a risk for financial firms in adopting sustainability practices, as they follow a logic that contradicts the purely economic rationale. On the other hand, the positive relationship between governance and FP helps not only companies but also regulators and researchers to understand the positive impact of a good governance structure.

Details

Accounting Research Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1030-9616

Keywords

To view the access options for this content please click here
Article
Publication date: 15 July 2021

Giuseppe Nicolò, Giovanni Zampone, Giuseppe Sannino and Serena De Iorio

Recent regulatory changes in Europe have promoted non-financial reporting practices (e.g., Directive, 2014/95/EU) and gender diversity in decision-making positions…

Abstract

Purpose

Recent regulatory changes in Europe have promoted non-financial reporting practices (e.g., Directive, 2014/95/EU) and gender diversity in decision-making positions. Special attention is devoted to promoting the gender balance on corporate boards as a key mechanism to enhance corporate governance effectiveness and better address multiple stakeholders' needs. With this in mind, this study intends to examine the impact of boardroom gender diversity on Environmental Social Governance (ESG) disclosure practices in the European listed firms' context.

Design/methodology/approach

The study applies different panel data models on an extended sample of 1,392 firms from 21 European Union (EU) countries for six years (2014–2019).

Findings

Findings allow to spotlight the positive role exerted by the presence of women directors on the boards in enhancing ESG disclosure, both at the overall and specific (individual ESG scores) level.

Research limitations/implications

Policymakers and regulators might consider the study's evidence as a stimulus to continue in promoting strategic actions and reforms that foster gender equality and balance in corporate decision-making positions.

Practical implications

Creating a heterogeneous and diversified board of directors may support implementing a “sustainable corporate governance” recently claimed by the EC.

Originality/value

The study contributes to the literature by disentangling the links between gender diversity and ESG disclosure over a period that covers a long season of European regulations and measures that affected both non-financial reporting practices and the board of directors' composition. Accordingly, it can contribute to enhancing the practical and theoretical understanding of the pivotal role that gender diversity may exert in strengthening corporate governance and, in turn, corporate transparency and accountability behaviours about non-financial issues.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

To view the access options for this content please click here
Article
Publication date: 3 June 2021

Chairani Chairani and Sylvia Veronica Siregar

This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social…

Abstract

Purpose

This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social and governance (ESG) performance.

Design/methodology/approach

The samples in this study are listed companies in the ASEAN 5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) during the years 2014–2018, with total observations of 680 firm-years. Fixed effect panel data regressions were used to test the hypotheses. The data was collected from Financial Report, Annual Reports and Thomson Reuters.

Findings

The results show that ERM has a positive significant effect on financial performance and firm value. This paper also finds that ESG has a significant moderating role in increasing the effect of ERM on firm value. Further, this paper divides the samples into sensitive and non-sensitive industries and find a significant moderating role of ESG performance on firm performance for sensitive industries.

Originality/value

Extant studies have not empirically examined the moderating role of ESG on the effect of ERM on firm performance and firm value. The findings have important implications in suggesting that firms need to analyze various threats and opportunities related to and ESG risks in achieving competitive advantage.

Details

Meditari Accountancy Research, vol. 29 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

To view the access options for this content please click here
Article
Publication date: 14 June 2021

Muttanachai Suttipun and Thanyaorn Yordudom

This study aims to survey the extent, level and trend of environmental, social and governance (ESG) disclosures of top50 listed companies from Thailand, to test the…

Abstract

Purpose

This study aims to survey the extent, level and trend of environmental, social and governance (ESG) disclosures of top50 listed companies from Thailand, to test the different level of ESG disclosures of the companies between high profile industry and low profile industries and to examine the impact of ESG disclosures on the market reaction of top50 listed companies in Thailand.

Design/methodology/approach

Population and sample were top50 listed companies from the Stock Exchange of Thailand. Using corporate annual reports from 2015 to 2019, content analysis by word counting was used to quantify the extent, level and trend of ESG disclosures, while the market reaction was collected by the average stock price. Descriptive analysis, independent sample t-test, correlation matrix and multiple regression were used to analyze the data.

Findings

There was an increased level of ESG disclosures during the period being study. The most common ESG disclosures were social disclosure following by governance and environmental disclosures. Moreover, there were different levels of environmental disclosure of top50 listed companies between high and low profile industries, while no different levels of social and governance disclosures between high and low profile industries were found. Finally, the study found that environmental and social disclosures had a positive impact on market reaction, while there was a negative impact of governance disclosure on market reaction.

Originality/value

Thai investors can use ESG disclosures for their decision-making on investment.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

To view the access options for this content please click here
Article
Publication date: 29 June 2021

Rajesh Kumar Bhaskaran, K.S. Sujit and Saksham Mongia

This research study examines the impact of social and governance initiatives on financial performance of global banks. The study is significant in the context of massive…

Abstract

Purpose

This research study examines the impact of social and governance initiatives on financial performance of global banks. The study is significant in the context of massive changes in regulations, government policy, social attitudes and market development attributed to banking sector.

Design/methodology/approach

The source of data for this study was ESG database of Thomson Reuters. The study was based on 472 global banks. The research paper uses two-stage least square model and the study covered the five-year period 2015–2019.

Findings

Banks with high intensity of social and governance-related activities have positive market-based valuation effects. Adequately capitalized banks tend to invest more in social initiatives. Banks' governance initiatives directed toward the use of anti-takeover defensive mechanisms are skeptically perceived by markets. Riskier banks tend to have less investments in social initiatives.

Research limitations/implications

The findings are relevant in the context of expectations from policymakers, consumers and investors with respect to the role which banks ought to play in funding the development of a sustainable economy. The research finding that strong governance and social initiatives by banks are value-enhancing measures is a clear evidence of the significance of ESG initiatives as value-creating mechanisms as perceived by markets.

Originality/value

This study addresses the gap in the research, which examines the role of governance and social initiatives on value creation in the banking sector firms. The study examines the impact of different elements of governance and social initiatives on financial performance of banks.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

To view the access options for this content please click here
Article
Publication date: 25 June 2021

Amina Buallay

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Originality/value

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

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

1 – 10 of over 1000