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Open Access
Article
Publication date: 2 August 2023

William Newlove Azadda, Samuel Koomson and Senanu Kwasi Klutse

As public awareness of the concept of sustainable development has increased, a new investor market has appeared. These investors will only make investments in sustainable…

1086

Abstract

Purpose

As public awareness of the concept of sustainable development has increased, a new investor market has appeared. These investors will only make investments in sustainable financial instruments. Yet, how corporate managers can effectively exploit this new financing concept to make their companies risk resilient remains unaddressed. This study, a conceptual research, aims to examine the impact of sustainable finance (SF) on business risk resilience (BR) and the impact of SF on risk management infrastructure (RI). It also addresses the impact of RI on BR and the mediating effect of the former between SF and BR in the corporate world. Finally, this research explores the moderating effect of managerial capability (MC) and firm technology-focused innovation capability (IC) between SF and RI.

Design/methodology/approach

This study incorporates both theoretical and empirical works in the sustainability, innovation, risk management and HRM fields. Afterwards, it constructs a conceptual model alongside suppositions that can be tested in further studies.

Findings

This study proposes that SF will enhance BR and RI. Moreover, RI will promote BR and positively intervene between SF and BR. Furthermore, MC and IC will reinforce the SF–RI impact such that the SF–RI impact will be strengthened for companies whose MCs and ICs are high than low.

Research limitations/implications

This research affords suggestions for researchers in multidisciplinary fields. It reinforces BR and RI by introducing SF, MC and IC as tactical devices. It also serves as a reference point for forthcoming academics to investigate this conceptual model, empirically, in diverse industries worldwide.

Practical implications

Practical lessons for finance, investment and risk managers, as well as corporate investors are discussed.

Originality/value

This study provides a new research model that demonstrates how SF can be exploited to promote BR and build RI. It also shows how RI can bolster BR and how RI can connect SF to BR. This new model also exhibits how MC and IC moderate the impacts of SF and RI. Thus, it attempts to advance existing knowledge and theoretical frameworks.

Details

Vilakshan - XIMB Journal of Management, vol. 21 no. 1
Type: Research Article
ISSN: 0973-1954

Keywords

Article
Publication date: 24 November 2023

Ayman Issa

This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as…

Abstract

Purpose

This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as corporate social responsible (CSR) strategy and corporate governance practices, that may strengthen the link between carbon reduction initiatives and financial performance.

Design/methodology/approach

The empirical analysis is conducted using 1,740 firm-year observations from UK firms listed on the FTSE 350. Data on carbon emissions and firm-specific characteristics are obtained from the Refinitiv Eikon database for the period 2011–2020. Various econometric techniques, including ordinary least squares and system generalized method of moments, are used to examine the relationship between carbon reduction initiatives and financial performance. Additionally, alternative samples are used to further explore this relationship.

Findings

The author observes a significantly positive association between carbon reduction initiatives and financial performance in this study. Additionally, the significance of this relationship is found to be present specifically after the announcement of the Paris Agreement. Furthermore, a channel analysis reveals that moderating factors like CSR strategy and corporate governance quality influence this relationship.

Practical implications

The study underscores the importance of carbon reduction initiatives for sustainable business growth and financial performance. Managers can use these insights to prioritize investments in sustainable practices. Policymakers should consider implementing supportive regulations to incentivize companies to adopt carbon reduction strategies.

Originality/value

This study adds value to the existing body of literature by empirically examining the moderating role of CSR strategy and best corporate governance practices in the relationship between carbon reduction initiatives and financial performance. The findings contribute to a deeper understanding of how these factors interact and influence the outcomes.

Details

International Journal of Accounting & Information Management, vol. 32 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 19 April 2024

Serhat Yuksel, Hasan Dincer and Alexey Mikhaylov

This paper aims to market analysis on the base many factors. Market analysis must be done correctly to increase the efficiency of smart grid technologies. On the other hand, it is…

Abstract

Purpose

This paper aims to market analysis on the base many factors. Market analysis must be done correctly to increase the efficiency of smart grid technologies. On the other hand, it is not very possible for the company to make improvements for too many factors. The main reason for this is that businesses have constraints both financially and in terms of manpower. Therefore, a priority analysis is needed in which the most important factors affecting the effectiveness of the market analysis will be determined.

Design/methodology/approach

In this context, a new fuzzy decision-making model is generated. In this hybrid model, there are mainly two different parts. First, the indicators are weighted with quantum spherical fuzzy multi SWARA (M-SWARA) methodology. On the other side, smart grid technology investment projects are examined by quantum spherical fuzzy ELECTRE. Additionally, facial expressions of the experts are also considered in this process.

Findings

The main contribution of the study is that a new methodology with the name of M-SWARA is generated by making improvements to the classical SWARA. The findings indicate that data-driven decisions play the most critical role in the effectiveness of market environment analysis for smart technology investments. To achieve success in this process, large-scale data sets need to be collected and analyzed. In this context, if the technology is strong, this process can be sustained quickly and effectively.

Originality/value

It is also identified that personalized energy schedule with smart meters is the most essential smart grid technology investment alternative. Smart meters provide data on energy consumption in real time.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Book part
Publication date: 6 May 2024

Mohamed Chakib Kolsi, Ahmad Al-Hiyari and Khaled Hussainey

Corporate social responsibility (CSR) has gained great attention among regulators, stock market authorities, and firms' stakeholders for many decades. In this chapter, we first…

Abstract

Corporate social responsibility (CSR) has gained great attention among regulators, stock market authorities, and firms' stakeholders for many decades. In this chapter, we first review the main regulations, standards, and laws issued by UAE federal authorities namely the Company Commercial Law of 2015, the Abu Dhabi Stock Exchange (ADX) disclosure guidance of 2019, Abu Dhabi Sustainability Week, and UAE CSR platform. Second, we present a summary of the empirical research on CSR issues in UAE context, namely in the following four fields: (1) CSR determinants both at the micro and macro levels, (2) CSR measures in the three pillars (environmental, social, and governance), (3) the impact of CSR policy and practices on financial performance/market value, (4) and the role of some mediating/moderating variables such as leadership and board gender diversity. Results show greater compliance to CSR standards among different industries and institutions but heterogenous empirical findings in the four explored fields. While there is crucial alignment with both social and environmental standards as evidenced by numerous empirical studies, additional efforts should be deployed to highlight the governance pillar through firms' discretionary reporting. Our survey provides useful directives and outcomes as it portrays both legal aspects coupled with some empirical evidence of CSR issues in the UAE context. Our study helps corporations to comply with local standards on sustainability reporting and highlights the potential economic benefits and advantages for firms adopting CSR strategy. Furthermore, it can be considered as the cornerstone for regulatory bodies in the United Arab Emirates when issuing/enhancing new standards/rules on CSR practices.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

Article
Publication date: 10 June 2022

Arash Arianpoor and Seyyed Sajjad Naeimi Tajdar

This study aims to explore the relationship between firm risk, capital structure, cost of equity capital and social and environmental sustainability during the COVID-19 pandemic…

Abstract

Purpose

This study aims to explore the relationship between firm risk, capital structure, cost of equity capital and social and environmental sustainability during the COVID-19 pandemic for companies listed on Tehran Stock Exchange.

Design/methodology/approach

To this aim, the information about 190 companies in 2014–2020 was retrieved to be analyzed. The total risk and systematic risk were used as the indicators of company risk; the industry-adjusted earnings price ratio (IndEP) and GORDON were used for the cost of equity capital. To measure social sustainability and environmental sustainability, the procedure suggested by Arianpoor and Salehi (2020) was used.

Findings

Underleveraged firms have had a lower total risk during the COVID-19 pandemic, while overleveraged firms have not had a higher risk during this time. In overleveraged firms, using systematic risk has a negative impact on social sustainability during the COVID-19 pandemic. In overleveraged firms, using total risk and systematic risk has a significant negative impact on environmental sustainability in the pandemic. Besides, overleveraged firms have a lower cost of equity capital (IndEP) during COVID-19.

Originality/value

To the best of the authors’ knowledge, no similar study has so far examined the joint impact of COVID-19 and corporate risk on social and environmental sustainability and also the joint impact of COVID-19 and capital structure on the cost of equity. This study contributes to the related literature by providing corporations with insightful post-pandemic directions on capital structure decisions and social and environmental activities. Furthermore, this research and the relevant findings can help understand and develop social responsibility in Iran as a developing country.

Details

Journal of Facilities Management , vol. 22 no. 2
Type: Research Article
ISSN: 1472-5967

Keywords

Book part
Publication date: 6 May 2024

Hind Dheyaa Abdulrasool and Khawla Radi Athab Al-Shimmery

Implementing the 17 Sustainable Development Goals (SDGs) unarguably demands huge financial investments. However, the United Nations has acknowledged the huge financial gap…

Abstract

Implementing the 17 Sustainable Development Goals (SDGs) unarguably demands huge financial investments. However, the United Nations has acknowledged the huge financial gap militating against the implementation of the SDGs worldwide, leading experts to question the possibility of complete implementation of the goals by their terminal dateline of 2030. While the bulk of the finance currently outlaid on the SDGs comes from traditional sources including foreign direct investments (FDIs), there is the need to focus more attention on developing and exploiting impact investments that are more suitable for financing development programmes and projects. In this chapter, the SDG implementation profiles of the 12 Arab West Asia countries concerning the five most targeted SDGs were evaluated and sustainable finance issues were discussed. Secondary data were retrieved from World Bank's DataBank. The data were descriptively analyzed. Based on the profiles generated, debt relief is put forward as a possible impact investment mechanism suitable for funding the SDGs. Specifically, this chapter recommends that outright cancellation of debts based on the debt-for-SGD swap could serve as some of the impact investments needed to boost the global drive for a developed, peaceful, and just world.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

Book part
Publication date: 6 May 2024

Channoufi Sabrine

This chapter examines the influence of external public borrowing resources on economic progress in Tunisia. The study focuses on two stages: First, the influence is studied in a…

Abstract

This chapter examines the influence of external public borrowing resources on economic progress in Tunisia. The study focuses on two stages: First, the influence is studied in a direct sense and then in an indirect sense, i.e., through a transmission channel of this influence. By applying the autoregressive distributed technique with staggered lags (ARDL), over a period ranging from 1986 to 2019, the results showed that the influence of external borrowing resources on growth seems to be unfavorable in the short term but positive in the long term, hence the importance of the empirical technique chosen. Second, three interaction variables were tested, namely total government expenditure, government investment expenditure, and the real effective exchange rate. The results obtained call for better attention to the channels identified to maximize the positive influence of external public debt on the country's economic progress.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

Article
Publication date: 17 April 2024

Alanoud Fetais, Hasan Dincer, Serhat Yüksel and Ahmet Aysan

This study aims to evaluate sustainable investment policies for housing in Qatar.

Abstract

Purpose

This study aims to evaluate sustainable investment policies for housing in Qatar.

Design/methodology/approach

This paper proposes a new model for analyzing sustainable investment policies for housing demand in Qatar via a hybrid quantum fuzzy decision-making model. The study processed the criteria with the facial expression-based Quantum Spherical fuzzy DEMATEL and ranked the alternatives with the facial expressions-based quantum spherical fuzzy TOPSIS. Four factors were determined due to a comprehensive literature review (Environment, Housing Design, Building Design, and Surrounding the building), with five sustainable investment policy alternatives (Electricity production with renewable energies, Recycling systems and materials in construction, Transport with less carbon emission, Biodiversity for residents, and Resilience to natural disasters).

Findings

The analysis indicates that the design of the building is the most important factor (0.254), while the environment is the most influencing factor (0.253) regarding housing demand in Qatar. Transport with less carbon emission and electricity production with renewable energies are the most critical alternative investment policies.

Originality/value

This study provides useful insights for regulators, policymakers, and stakeholders in Qatar’s sustainable investment policies for housing demand. The main motivation of this study is that there is a need for a novel model to evaluate the sustainable investment policies for housing demand. The main reason is that existing models in the literature are criticized due to some issues. In most of these models, emotions of the experts are not taken into consideration. However, this situation has a negative impact on the appropriateness of the findings. Because of this situation, in this proposed model, facial expressions of the experts are considered. With the help of this issue, uncertainties in the decision-making process can be handled more effectively.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Book part
Publication date: 6 May 2024

Muhammad Irfan Khan and Athar Iqbal

This is an acceptable fact that firms put efforts to maximize shareholders wealth but there is growing demand that firms are also accountable to various stakeholders associated…

Abstract

This is an acceptable fact that firms put efforts to maximize shareholders wealth but there is growing demand that firms are also accountable to various stakeholders associated directly or indirectly with the firms' business activities. Investors now evaluate firm's performance not only from financial perspective but also consider environment, social, and governance (ESG) factors when taking investment decision. ESG is not visible in firm's annual financial reports but investors do not deny its significance when valuing firms. There are increasing interests in ESG by communities, professionals, and government bodies, and all are interested to keep it as part of firms' regular activity and have to relate it with firm performance and efficiency that affects firm value. Still, there are difficulties in integration of ESG factors into investment decision-making, but efforts are being put to overcome all the issues. Firms which consider ESG are in a good position to achieve their long-term financial goals as they are likely to attract capital, lower borrowing costs, mitigate risks, and maximize shareholders value.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

Book part
Publication date: 6 May 2024

Mirza Muhammad Naseer and Tanveer Bagh

Corporate social responsibility (CSR) promotes society, reduces risk, and encourages ethical business practices. Due to its relevance, we study how CSR influences firms'…

Abstract

Corporate social responsibility (CSR) promotes society, reduces risk, and encourages ethical business practices. Due to its relevance, we study how CSR influences firms' sustainable development. We analyze data from 427 New York Stock Exchange (NYSE)-listed firms from 2008 to 2022. The Refinitiv environmental and social score is used to measure CSR, whereas for firms' sustainable development we rely on corporate sustainable growth rate (SGR) and market-based metrics. The analysis employs various econometric techniques, including ordinary least square, fixed effect regression, two-stage least square, generalized method of moment, and simultaneous quantile regression. The results indicate that CSR has a positive and significant effect on firms' sustainable development across all models. This relationship supports the notion that socially responsible business can contribute to long-term financial sustainability in line with “stakeholder theory”, indicating that companies should accommodate the concerns of various stakeholders, including society and the environment, to achieve sustainable development. We evaluate how the conditional distributions of SGR and firms’ value are affected by CSR, categorizing them into high, moderate, and low regimes. The quantile regression estimates indicate that the effect of CSR is more pronounced at upper quantiles, followed by moderate and low regimes. These findings underscore the importance of considering CSR in assessing the SGR and enterprises market value. We also confirm that our results are robust under range of different econometrics' methods. Finally, we enlighten current literature, and our research has useful policy implications for management and investors.

Details

The Emerald Handbook of Ethical Finance and Corporate Social Responsibility
Type: Book
ISBN: 978-1-80455-406-7

Keywords

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