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Article
Publication date: 27 May 2024

Yamina Chouaibi, Sawssen Khlifi and Jamel Chouaibi

The purpose of this study is to analyze the effect of corporate social responsibility (CSR) practices and corporate ethical behavior on implicit cost of equity (COE) using…

Abstract

Purpose

The purpose of this study is to analyze the effect of corporate social responsibility (CSR) practices and corporate ethical behavior on implicit cost of equity (COE) using integrated reporting quality (IRQ) as a mediating variable in European companies belonging to the environmental, social and governance (ESG) index.

Design/methodology/approach

The authors use a panel data set of 540 European firms from the ESG index from 2013 to 2022. The data were collected from I/B/E/S and Thomson Reuters ASSET4 database and analyzed using the structural equation model to test hypotheses.

Findings

In the instance of ESG European firms, the findings indicate that CSR practices and corporate ethical behavior are negatively related to the COE. From the result of the Sobel test, this study indicated that IRQ has only indirect mediation on the relationship between CSR, ethical behavior of the company and implicit COE.

Practical implications

The findings have some policy and practical implications that may help regulators and managers in improving the COE and helping companies envision their future growth opportunities in a context where responsibility, ethics and disclosure are central to corporate valuation. Using the implicit COE is a better estimate of shareholder requirements in the context of ESG companies.

Originality/value

This research concentrates on ESG companies since they are more likely to contribute to environmental protection, which attracts responsible investors. Furthermore, the findings may be useful to worldwide managers and investors who use responsible practices as a criterion in their decision-making.

Details

Global Knowledge, Memory and Communication, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9342

Keywords

Article
Publication date: 13 May 2022

Yamina Chouaibi, Saida Belhouchet, Salim Chouaibi and Jamel Chouaibi

The purpose of this paper is to examine the effect of integrated reporting quality (IRQ) on the cost of equity and financial performance of Islamic banks (IBs) in the Middle East…

Abstract

Purpose

The purpose of this paper is to examine the effect of integrated reporting quality (IRQ) on the cost of equity and financial performance of Islamic banks (IBs) in the Middle East and North Africa (MENA) region.

Design/methodology/approach

This study examines 67 IBs in the MENA region over a period of six years (2015–2020). This paper is motivated by the use of the method of ordinary least on square panel data. A multiple regression model is used to analyze the impact of the quality of integrated reporting, on the one hand, on the cost of equity and, on the other hand, on the financial performance of IBs in the MENA region. Similarly, as an extension of the research, the authors exploited the dynamic effect of the data set through the generalized method of moments and estimated the impact of the one-year lagged value of the cost of equity.

Findings

The empirical results obtained do indicate that the quality of integrated reporting seems to have a significant negative effect on the cost of equity capital. It is also interesting to note that IRQ has a positive and significant impact on the financial performance of IBs.

Research limitations/implications

Current research can help and encourage IBs to provide quality information to reduce the cost of equity. Furthermore, this research could be a valuable source of information for policymakers, regulators and stakeholders on IB governance practices and disclosure. Finally, integrated reporting is very important for the progress and development of the Islamic banking sector.

Originality/value

This paper is motivated by the limited research on integrated reporting and financial performance of IBs. It makes an important contribution to the academic literature by adding to the limited body of research on the cost of equity, performance and quality of integrated reporting in the MENA region. This study is also important for the investors seeking to reduce the cost of equity to improve financial performance.

Details

Journal of Global Responsibility, vol. 13 no. 4
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 18 December 2023

Hanen Ben Fatma and Jamel Chouaibi

This paper aims to investigate the direct and indirect links between good corporate governance (GCG) and firm value using corporate social responsibility (CSR) as a mediating…

Abstract

Purpose

This paper aims to investigate the direct and indirect links between good corporate governance (GCG) and firm value using corporate social responsibility (CSR) as a mediating variable.

Design/methodology/approach

The data used in this research was collected from the Thomson Reuters Eikon ASSET4 database, involving 108 financial institutions belonging to 12 European countries listed on the stock exchange between 2007 and 2019. A multivariate linear regression analysis was conducted to test the hypotheses of this study.

Findings

Our results show that GCG has a positive effect on the firm value and CSR practices. Interestingly, the results indicate that CSR positively influences firm value. The results also reveal that CSR partially mediates the relationship between GCG and firm value.

Originality/value

This study contributes to the literature by providing evidence on how GCG increases firm value with the mediation mechanism of CSR in the link between GCG and firm value. To the best of our knowledge, it is the first research work documenting that GCG leads to better CSR, which ultimately results in increasing firm value of companies from the financial sector by bridging the information gap for this critical industry in the context of a developed market like Europe.

Details

Meditari Accountancy Research, vol. 32 no. 4
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 13 January 2021

Salim Chouaibi, Jamel Chouaibi and Matteo Rossi

The purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate…

15626

Abstract

Purpose

The purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.

Design/methodology/approach

To test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.

Findings

The results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.

Practical implications

The findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.

Originality/value

This study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

Details

EuroMed Journal of Business, vol. 17 no. 1
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 24 October 2023

Jamel Chouaibi, Giuseppe Festa, Gazi Mahabubul Alam and Matteo Rossi

The aim of this study is to investigate potential relationships between the corporate governance system and the innovation development process, with a specific focus on the…

Abstract

Purpose

The aim of this study is to investigate potential relationships between the corporate governance system and the innovation development process, with a specific focus on the agri-food sector in the Tunisian context.

Design/methodology/approach

Most studies on innovation management have shown the collective nature of the innovation process, resulting from the multiple interactions that can be established between various actors, internal and external to the enterprise perimeter, which is increasingly digitally open, especially in the COVID-19 era. More specifically, the implementation of an innovation strategy is a risky issue for businesses, most of all when considering its financial requirements and impacts, and thus, appropriate management plays a relevant role in this respect.

Findings

Statistical tests, operated on a sample of 80 Tunisian companies, show that the style of management and the concentration of ownership exert significant influence on the dynamism of technological innovation in the agri-food sector.

Originality/value

The involvement and the commitment of institutional investors can contribute to stimulate the innovation process in the agri-food sector, providing related implications with significant impact, at the scientific and managerial level.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 11 March 2024

Saida Belhouchet and Jamel Chouaibi

This paper aims to shed light on the relationship between audit committee attributes and integrated reporting quality (IRQ).

Abstract

Purpose

This paper aims to shed light on the relationship between audit committee attributes and integrated reporting quality (IRQ).

Design/methodology/approach

Data on a sample of 360 European firms selected from the STOXX Europe 600 index between 2010 and 2021 were used to test the model based on multiple regression for panel data to analyze the effect of audit committee attributes on IRQ. This paper considers generalized least squares (GLS) estimation for panel data models.

Findings

The findings of this study confirm expectations concerning the impact of audit committee attributes on the IRQ. Indeed, audit committee independence and meetings have a significant positive impact on IRQ. However, no significant association is found between financial expertise and IRQ.

Practical implications

The findings of this paper have significant implications for policymakers, who, through proper legislation, should encourage the formation of larger audit committees and ones with a higher percentage of independent members. They should also establish a minimum number of audit committee meetings per year. These regulations, which aim to increase the efficacy of audit committees’ supervisory and monitoring tasks, would promote corporate transparency and improve IRQ.

Originality/value

This study supports the existing literature. First, it expands the scientific debate on IRQ. Second, unlike previous studies, which used more subjective methods to measure the degree of integrated reporting (IR), this study relied on the CGVS variable from the DataStream ASSET 4 Database. Third, the research is novel because it indicates the crucial role of internal assurance mechanisms in wide managerial reporting practices in European companies. The sample consisted of European firms only, whereas previous studies used a global sample. Finally, this study is based on recent data (2010–2021), while other studies covered the period between 2008 and 2013.

Details

Meditari Accountancy Research, vol. 32 no. 4
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 14 November 2023

Achref Marzouki, Jamel Chouaibi and Tijani Amara

This paper aims to explore the relationship between corporate corruption risk and environmental, social and governance (ESG) reporting and if this relationship is moderated by…

Abstract

Purpose

This paper aims to explore the relationship between corporate corruption risk and environmental, social and governance (ESG) reporting and if this relationship is moderated by business ethics.

Design/methodology/approach

Data from a sample of 347 European firms selected from the ESG Index between 2010 and 2020 were used to test the model using panel data and multiple regressions. This paper considered the feasible generalized least squares estimation for linear panel data models. A multiple regression model is used to analyze the moderating effect of business ethics on the association between corporate corruption risk and ESG reporting. For robustness analyses, the authors included the alternative measure of the dependent variable, and they applied the simultaneous equation model for the endogeneity test.

Findings

The empirical results reveal a negative relationship between corporate corruption risk and ESG reporting. Furthermore, the findings suggest that business ethics positively moderate the relationship between corporate corruption risk and ESG reporting.

Practical implications

This paper presents an enormous contribution to the various economic agents involved in the company. The results could attract the attention of socially responsible investors and, above all, corporate citizens. Moreover, the managers of corrupt companies could take into account the results of this study by being more committed to an optimized transparency strategy on ESG reporting.

Originality/value

To the best of the authors’ knowledge, this is the first study to investigate the moderating role of business ethics on the relationship between corporate corruption risk and ESG reporting in the European context. It is also the first study documenting that business ethics reinforce the relationship between firm corruption and nonfinancial information transparency. This study fills a research gap as it expands the existing literature, which generally focuses on the impact of corporate corruption on ESG reporting.

Details

International Journal of Ethics and Systems, vol. 40 no. 4
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 20 September 2023

Abdelhakim Ben Ali and Jamel Chouaibi

This study aims to investigate whether integrating environmental, social and governance (ESG) practices mediates the relationship between executive incentive compensation and the…

1384

Abstract

Purpose

This study aims to investigate whether integrating environmental, social and governance (ESG) practices mediates the relationship between executive incentive compensation and the financial performance of Islamic and conventional banks in the Middle East and North Africa (MENA) region.

Design/methodology/approach

This study used multiple regression models to analyze the effectiveness of ESG practices as a mediating variable in explaining the relationship between executive incentive compensation and banks’ financial performance between 2015 and 2021. The sample consisted of 57 Islamic and conventional banks operating in the MENA region, and the data were collected from the Thomson Reuters database (Data Stream).

Findings

This research paper showed the positive and significant mediating effect of the ESG practice on Banks’ financial performance. Thus, banks’ financial and stock market profitability is influenced by ESG information disclosure. This finding shows that taking ESG into account improves the relationship between executive incentive compensation and banks’ financial performance.

Practical implications

The results may interest academic researchers, regulators and policymakers and would support stakeholders and decision-makers who wish to discover how executive incentive compensation affects financial performance in banks.

Originality/value

This study contributes to previous literature by studying the mediating effect of ESG practices on the relationship between executive incentive compensation and banks’ financial performance. Indeed, the originality of this research paper is justified by the scarcity of studies and, to the best of the authors’ knowledge, constitutes one of the first attempts to examine this relationship via a mediating variable, i.e. ESG.

Details

Corporate Governance: The International Journal of Business in Society, vol. 24 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 28 April 2023

Hanen Ben Fatma and Jamel Chouaibi

This study aims to examine the direct relationship between board gender diversity (BGD) and financial performance and the moderating role of corporate social responsibility (CSR…

1198

Abstract

Purpose

This study aims to examine the direct relationship between board gender diversity (BGD) and financial performance and the moderating role of corporate social responsibility (CSR) in the said relationship.

Design/methodology/approach

Using data collected from the Thomson Reuters Eikon ASSET4 database from 42 UK financial institutions listed in the ESG index for the period 2005–2019, this study used multivariate regression analysis on panel data to test the effect of BGD on financial performance and estimate the moderating effect of CSR between them. Moreover, to control the endogeneity problem, the authors conducted an additional analysis by testing the dynamic dimension of the data set through the generalized moment method.

Findings

The empirical results show that BGD is positively related to financial performance and that BGD increases firm performance with the moderating effect of CSR. Regarding the endogeneity problem, the existence of continuity between financial institution performances over time is demonstrated.

Research limitations/implications

The current paper sheds light on the importance of BGD in improving firm performance and the moderating role of CSR in strengthening the relationship between BGD and firm performance, thereby contributing to the agency theory, the resource dependency theory and the stakeholder theory. Therefore, regulators and policymakers in the UK can use the outcomes of this study to enforce the representation of female directors on boards to enhance the financial performance of financial institutions. Moreover, the findings could be useful for regulatory bodies to encourage financial institutions to practice CSR activities and disclose them in their annual reports.

Originality/value

To the best of the authors’ knowledge, this is the first study investigating the moderating role of CSR on the relationship between BGD and financial performance in the context of the financial sector. It is also the first study documenting that CSR reinforces the relationship between gender-diverse boards and financial institutions' performance. This study fills a research gap as it expands the existing literature that has generally focused on the impact of BGD on financial performance and has not reached similar results.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 7
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 7 June 2023

Wafa Jilani, Jamel Chouaibi and Ahmed Kouki

The main purpose of this paper is to look at the link between chief executive officer (CEO) behavior and corporate social responsibility (CSR) engagement with the moderating role…

Abstract

Purpose

The main purpose of this paper is to look at the link between chief executive officer (CEO) behavior and corporate social responsibility (CSR) engagement with the moderating role of bank risk-taking behavior.

Design/methodology/approach

Based on a 13-year data set (2007–2019), the authors applied the feasible generalized least squares with panel data to test the hypotheses.

Findings

The findings reveal a positive and significant link between CEO behavior and CSR engagement. Based on these findings, it can be argued that the characteristics of the CEO of the banks would improve the CSR strategies. Furthermore, the study suggests a moderating effect of bank risk-taking in the link between psychological bias and corporate social responsibility engagement (CSR engagement).

Practical implications

As CEO behavioral characteristics are essential to understanding CSR practice, boards of directors should consider the behavioral traits of dominant and overconfident CEOs while designing CSR practices.

Social implications

If the bank behaves in a socially responsible manner, direct and indirect stakeholders may be able to evaluate the level of risk-taking in more detail.

Originality/value

This research highlights the importance of CEO behavior characteristics for CSR, which is a crucial application that supports the upper echelons theory; and fills a gap in literature research. It is one of the few studies examining the interaction between risk-taking, CEO behavior and CSR engagement.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 7
Type: Research Article
ISSN: 1472-0701

Keywords

1 – 10 of 24