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1 – 3 of 3Paulo Vitor Souza de Souza, Kátia Dalcero, Denize Demarche Minatti Ferreira and Edilson Paulo
This paper aims to examine how environmental, social and governance (ESG) practices are influenced by environmental innovations and how cultural dimensions moderate this…
Abstract
Purpose
This paper aims to examine how environmental, social and governance (ESG) practices are influenced by environmental innovations and how cultural dimensions moderate this interaction in Latin American companies.
Design/methodology/approach
In this paper 157 companies from 6 Latin American countries were studied between 2010 and 2021, with a total of 1,204 observations. Data were collected from Refinitiv Eikon®, and results were generated using ordinary least squares regression, with country and year as controls.
Findings
ESG performance is higher in companies that invest in environmental innovation; innovation positively affects individual ESG factors; and masculinity, individualism, indulgence and power distance positively or negatively moderate the relationship between innovation and ESG performance, as well as environmental and social dimensions.
Research limitations/implications
Our findings contribute to the body of knowledge on sustainable practices in different cultures. We draw the attention of standard setters to the impact of innovation and culture on ESG practices in different countries.
Practical implications
Better understanding of how environmental innovation can mitigate inequality, poverty and environmental issues in Latin America, promoting equitable development and environmental preservation.
Social implications
Latin American countries show significant levels of poverty, social and productive heterogeneity, and deficiencies in sustainable practices. Therefore, providing information on innovation as an incentive for better sustainable policies can promote these practices.
Originality/value
Our study fills a gap by examining the specific influence of environmental innovation on ESG performance, particularly through its interactions with cultural dimensions, in a sample of Latin American firms.
Propósito
Examinar cómo las prácticas de Medio Ambiente, Social y Gobierno Corporativo (ESG) se ven influenciadas por las innovaciones ambientales y cómo las dimensiones culturales moderan esta interacción en las empresas latinoamericanas.
Diseño/metodología/enfoque:
Se estudiaron 157 empresas de 6 países latinoamericanos entre 2010 y 2021, con un total de 1,204 observaciones. Los datos se recopilaron de Refinitiv Eikon® y los resultados se generaron utilizando regresiones de mínimos cuadrados ordinarios, con el país y el año como variables de control.
Hallazgos:
El desempeño ESG es mayor en empresas que invierten en innovación ambiental; la innovación afecta positivamente a factores ambientales, sociales y de gobierno corporativo individuales; y la masculinidad, el individualismo, la indulgencia y la distancia de poder moderan positiva o negativamente la relación entre la innovación y el desempeño ESG, así como las dimensiones ambientales y sociales.
Originalidad
Nuestro estudio llena un vacío al examinar la influencia específica de la innovación ambiental en el desempeño ESG, especialmente a través de sus interacciones con las dimensiones culturales, en una muestra de empresas latinoamericanas.
Implicaciones prácticas
Mejor comprensión de cómo la innovación ambiental puede mitigar la desigualdad, la pobreza y los problemas ambientales en América Latina, promoviendo el desarrollo equitativo y la preservación del medio ambiente.
Implicaciones sociales
Los países latinoamericanos muestran niveles significativos de pobreza, heterogeneidad social y productiva, y deficiencias en prácticas sostenibles. Por lo tanto, proporcionar información sobre la innovación como incentivo para políticas más sostenibles puede promover estas prácticas.
Limitaciones/implicaciones de la investigación
Nuestros hallazgos contribuyen al cuerpo de conocimiento sobre prácticas sostenibles en diferentes culturas. Llamamos la atención de los reguladores sobre el impacto de la innovación y la cultura en las prácticas ESG en diferentes países.
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This study aims to investigate the relationship between business group affiliation and CO2 emissions in Chile, providing insights into the pollution externalities associated with…
Abstract
Purpose
This study aims to investigate the relationship between business group affiliation and CO2 emissions in Chile, providing insights into the pollution externalities associated with business group structures and their implications for environmental performance.
Design/methodology/approach
A hand-matched sample of industrial facilities and subsidiaries of listed firms in Chile was utilized to analyze the CO2 emissions of business group-affiliated firms compared to stand-alone firms. Fixed-effect regression analysis and propensity score matching were employed to examine the differences in emissions levels.
Findings
The results suggest that firms affiliated with business groups have higher CO2 emissions in comparison to similar stand-alone firms. This suggests that business group structures may weaken the pressures for emission reduction and maintenance of public legitimacy among affiliated firms.
Research limitations/implications
The findings of this study are subject to certain limitations, such as the use of a specific dataset from Chile and the inability to explore certain factors due to data constraints. For instance, we were unable to examine the separation between control and cash-flow rights as well as the influence of manager characteristics on pollution levels. Future research should address these limitations and expand the analysis to other emerging market countries to further investigate the impact of lax or ineffective environmental regulations on pollution outcomes.
Practical implications
The research findings have practical implications for investors and policymakers. Investors interested in environmentally sustainable investments should consider the higher pollution levels associated with business group-affiliated firms. Policymakers can use these findings to design more effective regulations and incentives to encourage emission reduction efforts within business group structures.
Social implications
The study’s results emphasize the need for a comprehensive understanding of the environmental implications of business group affiliation. By recognizing the potential for higher emissions in business group structures, stakeholders can advocate for sustainable practices, encourage transparency and promote responsible environmental management within corporate entities.
Originality/value
This study contributes to the literature on corporate governance, climate risks and pollution externalities by providing an empirical evidence on the relationship between business group affiliation and CO2 emissions. It highlights the importance of considering the influence of corporate structures on environmental performance, particularly in the context of emerging market economies.
Objetivo
Este estudio tiene como objetivo investigar la relación entre la afiliación a grupos empresariales y las emisiones de CO2 en Chile, proporcionando información sobre las externalidades de contaminación asociadas con las estructuras de grupos empresariales y sus implicaciones para el desempeño ambiental de las empresas.
Diseño/Metodología/Aproximación
Se utilizó una muestra recolectada de manera manual de instalaciones industriales y subsidiarias de empresas listadas en Chile para analizar las emisiones de CO2 de empresas afiliadas a grupos empresariales en comparación con empresas independientes. Se emplearon análisis de regresión de efectos fijos y modelos de emparejamiento por puntaje de propensión para examinar las diferencias en los niveles de emisiones.
Hallazgos
Los resultados sugieren que las empresas afiliadas a grupos empresariales tienen mayores emisiones de CO2 en comparación con empresas independientes similares. Esto sugiere que las estructuras de grupos empresariales pueden debilitar las presiones para la reducción de emisiones y el mantenimiento de la legitimidad pública entre las empresas afiliadas.
Originalidad
Este estudio contribuye a la literatura sobre gobierno corporativo, riesgos climáticos y externalidades de contaminación al proporcionar evidencia empírica sobre la relación entre la afiliación a grupos empresariales y las emisiones de CO2. Destaca la importancia de considerar la influencia de las estructuras corporativas en el rendimiento ambiental, especialmente en el contexto de las economías de mercados emergentes.
Limitaciones/Implicaciones de la Investigación
Los hallazgos de este estudio están sujetos a ciertas limitaciones, como el uso de un conjunto de datos específico de Chile y la incapacidad para explorar ciertos factores debido a restricciones de datos. Por ejemplo, no pudimos examinar la influencia de las características de los ejecutivos de las empresas en los niveles de contaminación. Investigaciones futuras deberían abordar estas limitaciones y ampliar el análisis a otros países de mercados emergentes para investigar más a fondo el impacto de regulaciones ambientales laxas o ineficaces en los resultados de contaminación.
Implicaciones Prácticas
Los hallazgos de la investigación tienen implicaciones prácticas para inversores y responsables políticos. Los inversores interesados en inversiones ambientalmente sostenibles deben tener en cuenta los niveles más altos de contaminación asociados con empresas afiliadas a grupos empresariales. Los responsables políticos pueden utilizar estos hallazgos para diseñar regulaciones más efectivas e incentivos para fomentar los esfuerzos de reducción de emisiones dentro de las estructuras de grupos empresariales.
Implicaciones Sociales
Los resultados del estudio enfatizan la necesidad de comprender de manera integral las implicaciones ambientales de la afiliación a grupos empresariales. Al reconocer el potencial de mayores emisiones en las estructuras de grupos empresariales, los interesados pueden abogar por prácticas sostenibles, fomentar la transparencia y promover una gestión ambiental responsable dentro de las entidades corporativas.
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Maeenuddin, Shaari Abdul Hamid, Annuar Md Nassir, Mochammad Fahlevi, Mohammed Aljuaid and Kittisak Jermsittiparsert
Microfinance emerged as an essential catalyst for socio-economic development and financial inclusion to reduce poverty. Microfinance institutions cannot meet their primary…
Abstract
Purpose
Microfinance emerged as an essential catalyst for socio-economic development and financial inclusion to reduce poverty. Microfinance institutions cannot meet their primary objective of poverty reduction if they are not sustainable financially. With the theoretical support of profit incentive theory, this paper aims to investigate the impact of organizational structure (OS), growth outreach (average loan per borrower [ALPB] and number of active borrowers), women empowerment (percentage of women borrowers [PWB]), liquidity, leverage and cost efficiency (cost per borrower) on the financial sustainability of microfinance providers (MFPs) in India and explore the possible moderating effect of the national governance indicators (NGIs).
Design/methodology/approach
A financial sustainability index has been developed by using principal components analysis, including both conventional measures (return of assets and return on equity) and efficiency measures (operational self-sufficiency and financial self-sufficiency). Due to the existence of endogeneity and heteroskedasticity, this study uses two-step system generalized method of moments estimates to examine the relationships for a period of 2006 to 2018.
Findings
The finding reveals that there is a strong significant relationship between financial sustainability and its influential factors. Organizatioanl Structure, loan size, women borrowers, Gross Domestic Products and inflation enhance the financial sustainability of India’s microfinance sector. However, a number of borrowers, liquidity, leverage and operating costs negatively affect the financial sustainability of MFPs of India. The estimates demonstrate that NGIs significantly moderate the association between financial sustainability and its influential factors. The NGIs negatively affect the positive impact of Organizatioanl Structure on financial sustainability. National governance increases the positive effect of loan size (ALPB) and reduces the negative effect of a number of borrowers and leverage on the financial sustainability of MFPs of India. However, NGIs negatively affect the positive relationship between Percentage of Women Borrowers and Financial sustainability of Microfinance Providers of India.
Originality/value
To the best of the authors’ knowledge, this study is the first of its kind that incorporates all of the six dimensions of the National Governance Indicators (NGIs) and uses as a moderator. Secondly, a financial sustainability index has been developed for measuring the financial sustainability of Microfinance Providers (MFPs).
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