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Article
Publication date: 2 November 2022

Jasim AlAjmi, Amina Buallay and Shahrokh Saudagaran

This study aims to examine the moderating role of a country's economic activities and institutional quality (IQ) on the relationship between corporate social…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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

Peer review

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

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 10 April 2020

Amina Buallay, Sayed M. Fadel, Jasim Alajmi and Shahrokh Saudagaran

This study aims to examine the relationship between sustainability reporting and bank performance after financial crisis in developed and developing countries.

2134

Abstract

Purpose

This study aims to examine the relationship between sustainability reporting and bank performance after financial crisis in developed and developing countries.

Design/methodology/approach

This study examines 882 banks from developed and developing countries covering 11 years after the 2008 financial crisis. The independent variable is environmental, social and governance (ESG) scores. The dependent variables are return on assets, return on equity and Tobin’s Q. This study uses bank- and country-specific control variables to measure the relationship between sustainability reporting and bank performance.

Findings

The findings deduced from the empirical results demonstrate that ESG improves banks’ accounting and market-based performance in developed countries, supporting value creation theory. Using pooling regression and instrumental variable – generalized method of moments, this study finds that ESG weakens banks’ performance in developed and developing countries.

Originality/value

To the best of the author’s knowledge, this is the first study to investigate and compare the impact of sustainability reporting on banks’ performance in developed and developing countries. The study found similarities in the impact of sustainability reporting and the improvement of banks’ current and future performance.

Details

Competitiveness Review: An International Business Journal , vol. 31 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 9 November 2022

Jasim Al-Ajmi, Shahrokh Saudagaran, Gagan Kukreja and Sayed Fadel

The purpose of this study is twofold. The first is to examine the impact of environmental disclosure on banks’ performance, while the second is to investigate the…

Abstract

Purpose

The purpose of this study is twofold. The first is to examine the impact of environmental disclosure on banks’ performance, while the second is to investigate the moderating role of a country’s economic activities and institutional quality on the relationship between environmental activities disclosure and banks’ operational, financial and market performance.

Design/methodology/approach

The sample includes 246 banks from emerging markets from 2008 to 2020, comprising 1,899 bank-year observations. The independent regressors are environmental disclosure, two moderators and two sets of control (bank and country) variables. The dependent variables are return on assets, return on equity and Tobin’s Q. This study adopts ordinary least squares, panel fixed effect and instrumental variables generalized method of moments to estimate the parameters of the models.

Findings

This study reveals a negative relationship between environmental disclosure and bank performance, lending credence to the agency and neoclassical theories. The moderator regressors show positive influence on banks performance. The results indicate that it is difficult to make a business case for environmental commitment.

Practical implications

There is a need for effective monitoring by shareholders to ensure that funds allocated for environmental activities are spent wisely.

Originality/value

This study provides new evidence on the ways in which economic and institutional quality influence the environmental practices of banks in emerging and frontier markets.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 1 March 2021

Amina Buallay, Jasim Al-Ajmi and Elisabetta Barone

This study aims to investigate the relationship between the level of sustainability reporting and tourism sector’s performance (operational, financial and market).

Abstract

Purpose

This study aims to investigate the relationship between the level of sustainability reporting and tourism sector’s performance (operational, financial and market).

Design/methodology/approach

Using data culled from 1,375 observations from 37 different countries for ten years (2008–2017), an independent variable derived from the environmental, social and governance (ESG score) is 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.

Findings

The findings elicited from the empirical results of the linear models demonstrate that there is a significant relationship between ESG and operational performance (ROA) and market performance (TQ). However, there is no significant relationship between ESG and financial performance (ROE). Furthermore, the results of the nonlinear models suggest that the relationship between sustainability performance and firm's profitability and valuation is nonlinear (inverted U-shape).

Originality/value

The models in this study presents a valuable analytical framework for exploring sustainability reporting as a driver of performance in the tourism sector's economies. In addition, this study highlights the tourism sector's management lacunae manifesting in terms of the weak nexus between each component of ESG and tourism sector's performance.

Details

Journal of Organizational Change Management, vol. 35 no. 2
Type: Research Article
ISSN: 0953-4814

Keywords

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