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Article
Publication date: 14 May 2024

Konstantina Ragazou, Christos Lemonakis, Ioannis Passas, Constantin Zopounidis and Alexandros Garefalakis

This is the application of the Entropy and TOPSIS model to assess the eco-efficiency of European financial institutions using environmental, social, and governance (ESG…

Abstract

Purpose

This is the application of the Entropy and TOPSIS model to assess the eco-efficiency of European financial institutions using environmental, social, and governance (ESG) strategies. The aim is to categorize financial institutions based on key factors such as environmental training and management and to examine the alignment between ideal ESG performance and eco-efficiency.

Design/methodology/approach

The study uses environmental, social, and governance (ESG) strategies to identify and categorize eco-entrepreneurs in European financial institutions. The study utilizes data to examine the structure between environmental training, effective management practices, and the green performance of financial institutions.

Findings

The study shows that European financial institutions exhibit varying degrees of eco-efficiency as assessed using the Entropy and TOPSIS model applied to ESG strategies. Surprisingly, the study found that institutions with a high ESG performance do not always match those with the highest eco-efficiency.

Research limitations/implications

They emphasize the need for financial institutions to align their operations with sustainable practices. This research provides insights to increase eco-efficiency and improve the ESG performance of financial institutions. It also informs policy and decision-making in these institutions in relation to environmental training and management practices, contributing to the wider dialogue on sustainable finance.

Originality/value

This indicates a discrepancy between ESG ratings and actual eco-efficiency, emphasizing the need to reassess the ESG framework. The study findings are crucial for aligning financial institutions with sustainable practices and improving the effectiveness of the ESG framework, especially for institutions at the lower end of the eco-efficiency spectrum.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 24 November 2020

Constantin Zopounidis, Alexandros Garefalakis, Christos Lemonakis and Ioannis Passas

The purpose of this paper is to provide to the Board of Directors and CEOs of a firm to be aware of and accountable for the information they provide to the public. As long as the…

2008

Abstract

Purpose

The purpose of this paper is to provide to the Board of Directors and CEOs of a firm to be aware of and accountable for the information they provide to the public. As long as the quality of the companies’ public information is high, it will be able to retain its investors as well as to obtain new ones more easily.

Design/methodology/approach

This paper introduces a Multi-Criteria Decision Aid (MCDA) tool with the use of the PROMETHEE II method to formulate an alternative aggregate ESG quality approach. We conduct comparisons in a sectorial and regional based perspective during different exam periods before and after the implementation of International Financial Reporting Standards (IFRS), in an attempt to provide a robust framework for corporate disclosure reporting.

Findings

The findings are of particular interest to both scholars and decision-makers, including providers of corporate governance indices and rating agencies. The innovation of this paper lies among others in using the MCDA method with the ESG framework, which proposes a combination of qualitative and quantitative criteria, enabling experienced and/or not experienced analysts to avoid manipulating techniques in business information.

Research limitations/implications

The sample of companies based on the US and Europe companies incorporating only large-sized ones.

Practical implications

Findings are of particular interest to both scholars and decision-makers including providers of corporate governance indices and rating agencies.

Social implications

Better understanding features pay key importance for increasing the “quality” information in firms financial statements, especially after the use of IFRS in reporting standards.

Originality/value

The authors proceed to analysis using a multiple perspective use that is decomposed into the following options: (a) Time-period oriented option, (b) Regional-oriented option and (c) Sectoral-oriented option respectively.

Details

Management Decision, vol. 58 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

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