Search results

This study aims to examine the impact of ESG performance on financial risk (FR) in energy firms from developing countries. It also explores the moderating roles of ESG controversies and board gender diversity (BGD) on this relationship.

The research uses a panel data set of 218 energy firms from 20 developing countries from 2019 to 2024, using two-stage least squares regression to address potential endogeneity. Robustness checks are conducted using fixed-effects estimation and pooled ordinary least squares.

The results indicate that superior ESG performance significantly reduces both total and systemic risk. ESG controversies positively moderate the relationship between ESG performance and FR, suggesting that controversies may weaken the risk-reducing benefits of strong ESG practices. Additionally, BGD significantly strengthens the negative relationship between ESG performance and FR. Robustness checks confirm the consistency of these findings across different estimation methods.

This study contributes to the growing body of literature by examining the role of ESG performance in FR mitigation, specifically within the energy sector in developing countries. To the best of the authors’ knowledge, this is the first research to explore these dynamics in this specific context. This study uniquely illustrates how ESG controversies and BGD significantly moderate the ESG–risk relationship, offering fresh insights that extend stakeholder, risk management and legitimacy theories. The findings highlight the importance of integrating ESG factors into corporate governance and risk management, particularly for firms operating in high-risk, high-impact industries such as energy.

This study investigates the impact of intellectual capital (IC) and green innovation (GI) on the financial performance (FP) of micro, small and medium enterprises (MSMEs) within creative industry in India. It also explores the mediating role of sustainability in these relationships, aiming to provide insights into how these factors contribute to business success and long-term sustainability within the creative sector.

The research uses a quantitative methodology, analyzing data collected from creative MSMEs in India. Structural equation modeling (SEM) is used to test the hypotheses. Data was gathered through a structured questionnaire, ensuring a comprehensive analysis of the relationships among the constructs.

The study reveals significant positive relationships between IC, GI, sustainability and FP in small and midsize creative businesses. IC and GI positively influence FP, with sustainability acting as a mediating factor. These findings illustrate that integrating sustainability into business strategies can amplify the benefits derived from IC and GI.

This study advances the understanding of FP in creative MSMEs by examining the impact of IC and GI through the lens of sustainability. It introduces a framework that demonstrates how strategic resources and sustainable practices can be leveraged to achieve significant business outcomes. By providing insights into how sustainability initiatives enhance operational efficiency and profitability, this research offers a transformative approach to integrating sustainability into business strategy. The findings contribute to a generalizable model applicable across various sectors and regions, enriching the discourse on sustainable business practices.