scholarly journals Materiality Conditions in the Interplay between Environment and Financial Performance: A Graphical Modeling Approach for EEA Oil and Gas Companies

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Mirela Sichigea ◽  
Marian Siminica ◽  
Mirela Cristea ◽  
Gratiela Georgiana Noja ◽  
Daniel Circiumaru
Keyword(s):  
Financial Performance ◽  
Graphical Models ◽  
Structural Equation ◽  
Oil And Gas ◽  
Strong Dependence ◽  
Sustainable Growth ◽  
Equation Modeling ◽  
Main Concept ◽  
Thomson Reuters ◽  
Oil And Gas Companies

The recovery after the unprecedented pandemic crisis that Europe has currently been facing is strengthening the strong dependence between social, economic, and environmental fields, maintaining green investments and innovation at the core of the European strategies. Shifting to clean industries is a challenging mission that a complex network of stakeholders and their different interests must take into account. Within this network, the interplay between environmental and financial performance of a company represents a common point with a growing emphasis on the transparency and the materiality capacity of the disclosed information. This paper uses the Structural Equation Modeling and the Gaussian Graphical Models as graphical analysis approaches and offers a first insight about the interaction between environmental materiality measures and financial performance. A preliminary step of the scientific research consisted of a hand-mapping investigation about materiality conditions. Starting from the Materiality Map developed by the Sustainability Accounting Standards Board (SASB), this paper extends the main concept about materiality and investigates it on three different content ranges, which focus on the general environmental policy of the company, the targets set, and its concrete footprint. The methodology approaches were grounded on a newly compiled dataset provided by the Thomson Reuters database for 194 Economic European Area (EEA) oil and gas companies. The results provide significant evidences for the manifestation of materiality and emphasize the informational content of the individual environmental measures as an important condition for its financial impact. Adding to the environmental-financial performance relationship, our findings have both practical and academic relevance for the economic field and sustainable growth goals.

scholarly journals Well-Governed Sustainability and Financial Performance: A New Integrative Approach

2019 ◽  
Vol 11 (17) ◽  
pp. 4562 ◽  
Author(s):  
Marian Siminica ◽  
Mirela Cristea ◽  
Mirela Sichigea ◽  
Gratiela Georgiana Noja ◽  
Ion Anghel
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Integrative Approach ◽  
European Economic Area ◽  
Social Dimensions ◽  
Economic Dimension ◽  
Thomson Reuters

This study investigates the interlinkages between the dimensions of corporate social responsibility (CSR-economic, environmental, social), financial performance (ROA, ROE), and corporate governance (CG), by applying the structural equation modeling technique (SEM). It is based on a sample of 614 large companies from the European Economic Area, covering specific indicators published by the Thomson Reuters database, for the years 2013–2017. The equation models are structured starting from isolated dependencies between variables, up to the global ones (direct, indirect, and total dependencies). The mixed results obtained imply that the nature and heterogenous content of CSR lead to different statistical dependencies for each of the two financial performance indicators. ROA is positively influenced by the economic dimension of CSR, but, the level of this rate does not necessarily contribute to an increase in the involvement of the company in this type of CSR actions. At the same time, ROA is influenced and affects in a negative way the environmental and social dimensions of CSR. In the case of ROE, it is influenced and impacts the economic and social dimensions in a positive way. The environmental dimension of CSR influences ROE positively, but it is negatively affected by this profitability rate. Corporate governance exerts a positive impact on all of the model’s variables, both as a direct and indirect factor of influence.

scholarly journals Influence of ESGC Indicators on Financial Performance of Listed Pharmaceutical Companies

2021 ◽  
Vol 18 (9) ◽  
pp. 4556
Author(s):  
Alberto A. López-Toro ◽  
Eva María Sánchez-Teba ◽  
María Dolores Benítez-Márquez ◽  
Mercedes Rodríguez-Fernández
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Positive Relationship ◽  
Equation Modeling ◽  
Pharmaceutical Companies ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Thomson Reuters ◽  
The Impact

The pharmaceutical industry, concerned about the impact of its activity, has integrated responsible principles and practices with a view to improving its sustainable and financial performance. This study analyzes the relationship between environmental, social, governance, and controversy indicators and financial performance, measured through return on equity (ROA), return on assets (ROE), and Tobin’s Q, which are applied to the listed companies in the Nasdaq US Smart Pharmaceuticals Index. This index is composed of 30 international companies with a presence at the global level. All the data have been extracted from the Thomson Reuters database. The analysis was performed using structural equation modeling implemented with partial least squares. The results confirm the positive relationship between the construct composed of environmental, social, and governance (ESG) indicators and the aforementioned financial ratios. Additionally, a positive relationship of the controversy indicator with Tobin’s Q is supported. This suggests that the pharmaceutical multinationals focus their investments in sustainability on ESG and pay attention to controversies to boost the visibility of the company and thus increase its value. These conclusions confirm that investing in ESG is a profitable strategy. It is also relevant for managers as it increases the profits and the market value of multinational pharmaceutical companies.

scholarly journals The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

2021 ◽  
Vol 14 (2) ◽  
pp. 79
Author(s):  
Gratiela Georgiana Noja ◽  
Eleftherios Thalassinos ◽  
Mirela Cristea ◽  
Irina Maria Grecu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Services ◽  
Structural Equation ◽  
Supervisory Board ◽  
Fiscal Year ◽  
Services Sector ◽  
Board Characteristics ◽  
Financial Services Sector ◽  
Thomson Reuters

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies.

scholarly journals Analysis of Corporate Social Responsibility Execution Effects on Purchase Intention with the Moderating Role of Customer Awareness

2021 ◽  
Vol 13 (8) ◽  
pp. 4548
Author(s):  
Qingyu Zhang ◽  
Sohail Ahmad
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Purchase Intention ◽  
Structural Equation ◽  
Sustainable Growth ◽  
Equation Modeling ◽  
Future Research ◽  
Purchasing Intention ◽  
Corporate Social ◽  
Moderating Role

Corporate social responsibility (CSR) in management domains is a well-known concept that links corporate interests and environmental/community values. CSR is considered a strategic policy that offers environmental and social competitive advantages. Organizations consider that CSR-based goodwill provides a tactical competitive edge and sustainable growth. The goal of this paper is to show how CSR programs affect consumers’ purchasing intention in the context of Pakistan. In addition, the effect of customer awareness has been studied as a moderator between CSR and purchasing intention. To this end, the study has conducted a survey and gathered Pakistani customers’ responses, and structural equation modeling has been used to evaluate the results. The study concludes that CSR activities favorably affect customer purchasing intentions directly as well as indirectly through improving brand image and trust, and customer awareness of CSR activities plays a moderating role. The implications and future research directions are discussed.

scholarly journals Impact of Industry 4.0 on Corporate Financial Performance: A Moderated Mediation Model

2021 ◽  
Vol 13 (11) ◽  
pp. 6069
Author(s):  
Hong-Long Chen
Keyword(s):  
Financial Performance ◽  
Industry 4.0 ◽  
Structural Equation ◽  
Moderated Mediation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Bootstrap Sampling ◽  
Mediation Effects ◽  
Moderated Mediation Model

Many studies advance the contemporary technologies of Industry 4.0. However, relatively little is known about how Industry 4.0 affects corporate financial performance. Using a survey, bootstrap sampling, and structural-equation modeling, this study evaluates the moderated mediation effects of Industry 4.0 maturity on financial performance. The results show that Industry 4.0 maturity significantly affects internal business process performance (IBPP), which influences customer performance through the mediating effect of supply chain performance (SCP), and IBPP and SCP affect financial performance fully through the mediating effect of customer performance. The results also show that Industry 4.0 maturity moderates the positive relationship between customer performance and financial performance. Customer performance and IBPP have the largest direct and total effects on financial performance in the context of Industry 4.0 implementation, respectively. The results indicate that Industry 4.0 magnifies the potential returns to companies mainly through IBPP, SCP, and customer performance. This study offers an enhanced understanding of the financial implications of Industry 4.0 implementation and provides insights into the factors through which Industry 4.0 maturity influences financial performance.

scholarly journals Empirical analysis of inbound open innovation and SMEs performance: Evidence from oil and gas industry

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Yusuf O. Akinwale
Keyword(s):  
Financial Performance ◽  
Open Innovation ◽  
Measurement Errors ◽  
Structural Equation ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Petroleum Sector ◽  
External Actors ◽  
The Relationship

Background: This article contributes to existing literature by examining the relationship between inbound open innovation and firms’ financial performance in the Nigerian oil and gas industry. Aim: This article seeks to identify the factors of inbound open innovation and whether these factors influence the financial performance of small and medium-sized enterprises (SMEs) in the Nigerian oil and gas industry. Setting: This article examines 150 indigenous oil and gas SMEs in the upstream subsector of the Nigerian petroleum sector through a survey, using a questionnaire, conducted in 2015. Methods: The study applied the structural equation modelling (SEM) method. This method is used to test the relationships between the factors and to calculate the measurement errors in the hypotheses formulated. Results: The results show that technology scouting, vertical technology collaboration (VTC) and horizontal technology collaboration (HTC) positively and significantly contribute to inbound open innovation, which are thus significant in influencing the financial performance of SMEs. The size of technical staff and research and development (R&D) fund allocations also have a positive and significant correlation with the SMEs’ financial performance. Meanwhile, the age of SMEs is negative and not significant in influencing financial performance. Conclusion: The results suggest that inbound open innovation through scouting, HTC and VTC should therefore be encouraged among SMEs to boost their internal capabilities, which have hitherto enhanced their financial performance. The management members of each SME should continually consider collaboration with the external actors because they cannot singularly possess all the innovative skills required in the industry. Also, each firm should commit itself to allocate more funds to R&D and at the same time should hire those who have relevant production skills and train the existing ones in their firms.

Dependence, trust, and 3PL integration: an empirical study in China

2017 ◽  
Vol 47 (9) ◽  
pp. 927-948 ◽  
Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Structural Equation ◽  
Mainland China ◽  
Performance Model ◽  
Equation Modeling ◽  
Content Type ◽  
Key Dimensions ◽  
Process Coordination ◽  
The Relationship

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

scholarly journals Using Importance-Performance Matrix Analysis to Evaluate the Financial Performance of American Banks During the Financial Crisis

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824402090207
Author(s):  
Mohamed M. Khalifa Tailab
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Secondary Data ◽  
Poor Performance ◽  
Path Model ◽  
Matrix Analysis ◽  
Equation Modeling ◽  
Financial Decisions ◽  
Performance Matrix ◽  
Target Construct

This research applies a technique that identifies areas of improvement that can be addressed by managerial decisions or policy activities. It extends the application of partial least squares structural equation modeling (PLS-SEM) using an importance-performance map analysis (IPMA). The IPMA determines priority factors that should receive management’s attention. The PLS path model was tested by comparing 140 failed U.S. banks with the same number of nonfailed banks from 2006 to 2008. This model assembles 15 indicators with four predecessor constructs (i.e., profitability of 2006, profitability of 2007, risk of 2006, and risk of 2007) and one final target construct (i.e., profitability of 2008). Profitability and risk of 2007 mediate the path of profitability and risk of 2006 and profitability of 2008. The IPMA indicated that failed banks were predisposed to decreasing financial performance in 2008 because of their poor performance in 2006 and 2007. Conversely, nonfailed banks were more likely to experience increasing financial performance in 2008 because of their positive performance in 2006 and 2007. This study indicates that managers who use IPMA to prioritize their financial decisions will obtain useful conceptual insights and are unlikely to be misled. Although IPMA can be conducted on the indicator level as well, this article limits its analysis by focusing on the construct level only. The use of IPMA is ubiquitous in end-user surveys, but its application to banking is still in its embryonic state. For originality, this work prioritizes the application of IPMA using secondary data collected from financial statements to assess the performance of American banks during the crisis.

scholarly journals Does environmental performance leverage the impact of environmental strategy on financial performance? A focus on third-party logistic providers

2022 ◽  
Vol 10 (1) ◽  
pp. 29-36 ◽  
Author(s):  
Quang-Huy Ngo
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Third Party ◽  
Equation Modeling ◽  
Environmental Strategy ◽  
The Impact

Although prior studies draw upon natural resource-based views, environmental strategy permits competitive advantages, and as such, gains financial performance. However, empirical results are mixed. To shed light on this issue, this study proposes that environmental performance mediates the link between environmental strategy and financial performance. Data were collected from 175 third-party logistic providers currently operating in Vietnam to test the hypotheses. Partial least square structural equation modeling was borrowed to test the data. The results reveal environmental performance partially mediates the link between environmental strategy and financial performance. By considering the mediating effect, this study contributes to the literature by addressing the intervening mechanism of environmental performance on the inconclusive relationship between environmental strategy and financial performance. Besides, this study also extends prior studies by borrowing a concept of environmental strategy, which captures the extent of organizations pursuing this strategy, to explain how and why pursuing this strategy permits environmental and financial performance.

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