scholarly journals Accounting Treatment of R&D for Environmentally Responsible Firms: Evidence from South Korea

2020 ◽  
Vol 12 (8) ◽  
pp. 3418
Author(s):  
Suyon Kim ◽  
Jaehong Lee
Keyword(s):  
Environmental Performance ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Positive Association ◽  
Environmental Responsibility ◽  
Alternative Measure ◽  
Corporate Environmental Responsibility ◽  
Commercial Success ◽  
Environmentally Responsible ◽  
The Relationship

The purpose of this paper is to investigate the relationship between corporate environmental responsibility (CER) and R&D accounting treatment. Using firms listed in the Korea Stock Exchange (KSE) market between the years 2014 and 2018, this study not only investigates this relationship but also expands upon CER activities in various aspects, such as environmental performance strategy, environmental performance organization, and environmental shareholders. Furthermore, the positive association between various CER activities and R&D capitalization is significant in a highly competitive market. This relationship is robust with an alternative measure of CER activities and firm-fixed effects. This result implies that firms participating in CER activities focus on sustainable commercial success, unlike other firms.

scholarly journals Promoting or Inhibiting? The Impact of Enterprise Environmental Performance on Economic Performance: Evidence From China's Large Iron and Steel Enterprises

2021 ◽  
Author(s):  
Rong Liu ◽  
Feng He ◽  
Jianyu Ren
Keyword(s):  
Economic Performance ◽  
Environmental Performance ◽  
Environmental Responsibility ◽  
Data Envelopment ◽  
Corporate Environmental Responsibility ◽  
Iron And Steel ◽  
Environmental Performance Evaluation ◽  
The Impact ◽  
The Relationship ◽  
Production And Operation

Abstract In recent years, people have realized the importance of corporate environmental responsibility. In this study, we combine the Slack-based Measurement (SBM) model with the "Super-efficiency" model to construct the environmental performance evaluation based on Data Envelopment Analysis (DEA) to measure the environmental performance of China's large iron and steel enterprises from 2009 to 2017. Then, it studies the impact of environmental performance on enterprise economic performance through regression analysis. The results show that the impact of environmental performance of China's large iron and steel enterprises on economic performance shows an inverted U-shaped relationship. The conclusion is helpful to encourage enterprises to actively carry out environmental management, so as to maintain and enhance the competitiveness of enterprises. Therefore, this paper suggests that iron and steel enterprises should balance the relationship between environmental responsibility and economic performance in order to maximize enterprise performance. The main purpose of this paper is to let enterprises solve the negative externalities in production through internalization, and encourage enterprises to adopt environmental protection behavior for production and operation.

scholarly journals The Influence of Corporate Environmental Responsibility on Overinvestment Behavior: Evidence from South Korea

2020 ◽  
Vol 12 (5) ◽  
pp. 1901
Author(s):  
Jaehong Lee ◽  
Eunsoo Kim
Keyword(s):  
South Korea ◽  
Stock Exchange ◽  
Market Competition ◽  
Fiscal Year ◽  
Environmental Responsibility ◽  
Investment Efficiency ◽  
Corporate Environmental Responsibility ◽  
Financial Firms ◽  
Strong Product ◽  
The Relationship

The purpose of this paper is to examine the association between corporate environmental responsibility (CER) activities and investment efficiency as measured by overinvestment, and whether the industry-level competition affects this association. We investigate a sample of 2285 non-financial firms with fiscal year-end in December listed in the Korea Stock Exchange Market for the period of 2013–2018, measuring the investment efficiency by overinvestment model. Using environmental scores from the Korea Corporate Governance Service to measure CER activities, we show that, on average, firms can decrease overinvestment behavior through CER activities in South Korea. Moreover, in firms in a highly competitive market, the negative association between CER activities and overinvestment is pronounced, indicating that strong product market competition are effective in monitoring managerial opportunistic behavior. These results are robust, even after controlling for different setting and alternative CER. These findings also suggest that the relationship between CER and overinvestment appears to be benefit firms that are sound and sustainable and honestly present their financial information.

scholarly journals The Relationship between Environmental Regulation, Pollution and Corporate Environmental Responsibility

2021 ◽  
Vol 18 (15) ◽  
pp. 8018
Author(s):  
Mengxin Wang ◽  
Gaoke Liao ◽  
Yanling Li
Keyword(s):  
Environmental Pollution ◽  
Fixed Effects ◽  
Positive Impact ◽  
Environmental Regulations ◽  
Generalized Method Of Moments ◽  
Environmental Responsibility ◽  
Fixed Effects Model ◽  
Corporate Environmental Responsibility ◽  
The Government ◽  
The Relationship

The rapid economic development has severely damaged the ecological environment and affected public health. Firms are the main source of pollution; thus, corporate environmental responsibility (CER) has attracted great attention from the government, shareholders and the public. This study used both the fixed effects model and the system GMM (Generalized Method of Moments) model to examine the relationship between environmental pollution, environmental regulations and CER for 30 provinces in China, over the period 2005 to 2015. This study drew the following results: first, mandatory CER disclosure policy can significantly decrease environmental pollution. Second, an inverted U-shaped relationship exists between environmental regulations and environmental pollution. Third, environmental pollution has a positive impact on CER. Fourth, an inverted U-shaped relationship exists between environmental regulations and CER. Therefore, it is necessary to find a balance between environmental regulations affecting environmental pollution and CER so that they can effectively reduce environmental pollution and increase the enthusiasm of firms to carry out environmental responsibility activities.

scholarly journals RESPONSABILIDADE AMBIENTAL EMPRESARIAL E SUA DIMENSÃO TRANSNACIONAL

2019 ◽  
Vol 8 (2) ◽  
pp. 101-114
Author(s):  
Carla Piffer ◽  
Helena Liebl
Keyword(s):  
Natural Disasters ◽  
Environmental Law ◽  
Inductive Method ◽  
Environmental Responsibility ◽  
Corporate Environmental Responsibility ◽  
Socially Responsible ◽  
Environmentally Responsible ◽  
Greater Good ◽  
Operational Concept ◽  
The Relationship

O presente artigo tem como escopo estudar a Responsabilidade Ambiental Empresarial na sua dimensão transnacional. O mundo se tornou globalizado e com isso o Direito Internacional não é suficiente para atender às demandas da sociedade globalizada, surgindo então o Direito Transnacional, responsável por demonstrar que as fronteiras entre os países estão se desvanecendo e com isso também a soberania nacional em determinados aspectos. Entretanto, com a globalização, os desastres naturais e a devastação do meio ambiente se tornaram crescentes. Assim, se faz necessário que a humanidade se conscientize e se torne responsável socialmente com as questões econômicas, sociais e ambientais. Por tais mudanças ocorridas na sociedade civil global e a relevância de estudos sobre elas, o presente artigo tem como problema central o de descobrir a relação entre a Responsabilidade Ambiental Empresarial e a transnacionalidade. Como objetivos específicos pretende-se: discorrer sobre a Responsabilidade Ambiental Empresarial; analisar as principais características da transnacionalidade; e investigar sobre a Responsabilidade Ambiental Empresarial no seu aspecto transnacional. Ao final, são tecidos comentários referente à necessidade de prosseguir investigações sobre o assunto, visto que os desastres naturais causados por empresas atingem a toda uma população, transpondo as fronteiras dos Estados nacionais. Necessita-se, portanto, da conscientização por parte também das empresas, no sentido de que suas ações devem ser ambientalmente responsáveis, a fim de conceber um bem maior para a coletividade global. Quanto à Metodologia, utiliza-se o Método Indutivo, sendo acionadas as técnicas do Referente, da Categoria, do Conceito Operacional e da Pesquisa Bibliográfica.Palavras-Chave: Responsabilidade Ambiental Empresarial. Transnacionalidade. Direito Ambiental. BUSINESS ENVIRONMENTAL RESPONSIBILITY AND ITS TRANSNATIONAL DIMENSIONAbstract: The purpose of this article is to study business environmental responsibility in its transnational dimension. The world has become globalized and, as a result, international law is not sufficient to meet the demands of globalized society, and then transnational law has emerged, which is responsible for demonstrating that the borders between countries are fading, and thus national sovereignty in certain respects. However, with globalization, natural disasters and environmental devastation have become increasingly. Thus, it is necessary for humanity to become aware and socially responsible with economic, social and environmental issues. Due to such changes in global civil society and the relevance of studies on them, this article has as its central problem that of discovering the relationship between Corporate Environmental Responsibility and transnationality. The specific objectives are: to discuss Corporate Environmental Responsibility; analyze the main characteristics of transnationality; and investigate Corporate Environmental Responsibility in its transnational aspect. At the end, comments are made on the need to pursue further investigations on the subject, as natural disasters caused by businesses hit a whole population across national borders. Therefore, companies also need to be aware that their actions must be environmentally responsible in order to conceive a greater good for the global community. As for the Methodology, the Inductive Method is used, using the techniques of the Referent, Category, Operational Concept and Bibliographic Research.Keywords: Business environmental responsibility. Transnationality. Environmental law.

scholarly journals Spatial Dynamics between Firm Sales and Environmental Responsibility: The Mediating Role of Corporate Innovation

2021 ◽  
Vol 13 (4) ◽  
pp. 1684 ◽  
Author(s):  
Jiafeng Gu
Keyword(s):  
Environmental Performance ◽  
Explanatory Power ◽  
Spatial Dynamics ◽  
Spillover Effect ◽  
External Control ◽  
Environmental Responsibility ◽  
Systematic Research ◽  
Corporate Environmental Responsibility ◽  
Mediating Role ◽  
Corporate Innovation

Corporate environmental responsibility (CER) is increasingly gaining interest among researchers and practitioners. Despite this extensive interest, systematic research regarding the effect of sales on environmental performance remains scarce. In this study, an empirical analysis on a sample of 909 Chinese listed companies from 2010 to 2016 showed that sales positively impact environmental performance. This study also showed that corporate innovation mediates the relationship between sales and environmental performance. Furthermore, this study showed that environmental performance has a positive spatial spillover effect. Enterprises appear to promote their own environmental performance as a response to a rise in the environmental performance of their neighbors. The external control theory of organization has important reference significance and explanatory power for CER behavior in emerging economies.

The relationship between knowledge-based economy and fraudulent financial reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abbas Koolivand ◽  
Mahdi Salehi ◽  
Meysam Arabzadeh ◽  
Hassan Ghodrati
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Knowledge Based ◽  
Robust Testing ◽  
Knowledge Based Economy ◽  
The Relationship

Purpose This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting. Design/methodology/approach The study is descriptive-correlation based on published information from enlisted firms on the Tehran Stock Exchange during 2013–2019 with a sample of 178 firms (1,246 observations). The method used for hypothesis testing is linear regression using the panel data. Findings The results show that a knowledge-based economy is associated negatively and significantly with financial reporting. Moreover, robust testing has also examined the hypotheses (including fixed effects, OLS and t + 1) that confirmed the study’s preliminary results. Originality/value As the study was carried out in the emergent financial markets, like Iran, to figure out the relationship between knowledge-based economy and financial reporting, it can provide helpful information for the practitioners in this field.

Managers' and auditors' narcissism on the management team's stability and relative corporate performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Safoura Rouhi ◽  
Mohana Usefi Moghadam ◽  
Faezeh Faramarzi
Keyword(s):  
Significant Relationship ◽  
Fixed Effects ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Relative Performance ◽  
Psychological Characteristics ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Performance Research

PurposeSuccess in corporate relative performance is one of the factors for the growth and durability of firms. Since the relative performance is a function of managers' decisions and such decisions are under the influence of behavioral and psychological characteristics, this paper aims to assess the managers’ and auditors’ narcissism's effect on the management team's stability relative to corporate performance.Design/methodology/approachThis paper has used the signature magnitude for examining narcissism and the regression model of Jenter and Kanaan (2015) for assessing relative corporate performance. The logistic regression is used to test the model of the management team's stability, and the multivariate regression is used to test the model of relative corporate performance. Research hypotheses were also examined using a sample of 768 listed year-companies on the Tehran Stock Exchange during 2012–2017 and by employing a panel data approach and fixed effects method.FindingsThe obtained results show a negative and significant relationship between managers' and auditors' narcissism and the management team's stability. The relationship between the narcissism of managers and auditors and relative corporate performance is positive and significant. Moreover, managers' narcissism positively and significantly impacts the relationship between auditors' narcissism and team management stability. A negative and significant relationship is evident between auditors’ narcissism and relative corporate performance.Originality/valueThis study's results can identify the effect of psychological components such as narcissism on people's performance by directing and influencing their decisions. Many studies have been conducted on narcissism, but none of them have examined the impact auditors’ and managers' narcissism has on the management team's stability and the corporate relative performance. Therefore, considering the importance of success in the corporate relative performance and benefits of the management team's stability, this study's results can reveal the importance of such features in accounting research. Also, the results of this research can make it important to know more about financial behavioral theory.

The relationship between intellectual capital and financial statements readability: the role of management characteristics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Hassan Mohammadzadeh Moghadam ◽  
Zohreh Hajiha
Keyword(s):  
Regression Model ◽  
Intellectual Capital ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Financial Statements ◽  
Multiple Regression Model ◽  
Content Type ◽  
The Relationship

Purpose The present study aims to investigate the relationship between intellectual capital and the readability of financial statements with the mediating role of management characteristics of companies listed on the Tehran Stock Exchange. In other words, this research tries to find the answer to whether intellectual capital can positively affect the readability of financial statements. Design/methodology/approach A multivariate regression model was used to test the hypotheses for this purpose. The research hypotheses were tested using a sample of 1,309 observations listed on the Tehran Stock Exchange from 2012 to 2018 and a multiple regression model based on panel data and fixed-effects models. Findings The results indicate that intellectual capital has a positive and significant relationship with the readability of financial statements, which means that with increasing intellectual capital in companies, financial statements’ readability also increases. Based on the hypothesis test results, it has been determined that narcissism, accrual and real earnings management have a negative effect on the relationship between intellectual capital and the readability of financial statements. Originality/value Since the present study examines such an issue in emerging markets, it provides users, analysts and legal entities with useful information about management’s inherent and acquired characteristics that significantly impact the purchase of audit opinion. This study’s results also contribute to developing science and knowledge in this field and close the literature gap.

scholarly journals Impact of Political Connections on Corporate Environmental Performance：From a Green Development Perspective

2019 ◽  
Vol 11 (5) ◽  
pp. 1317 ◽  
Author(s):  
Liming Zhang ◽  
Fei Ye ◽  
Li Yang ◽  
Guichuan Zhou
Keyword(s):  
Public Participation ◽  
Environmental Performance ◽  
Positive Association ◽  
Green Technology ◽  
Political Connections ◽  
Corporate Environmental Performance ◽  
Mediating Role ◽  
Green Development ◽  
Strong Positive Association ◽  
The Relationship

Employing a sample consisting of Chinese A-share listed companies, this study carries out an empirical research to investigate the influence path of political connections on enterprise environmental performance. The results show a strong positive association between political connections and corporate environmental performance, and green technology innovation plays the mediating role between them. In addition, public participation negatively moderates the relationship between political connections and corporate environmental performance. When the level of public participation is higher, the relationship between political connections and corporate environmental performance becomes weaker.

The impact of corporate environmental responsibility strategy on brand sustainability

2018 ◽  
Vol 9 (3) ◽  
pp. 366-394 ◽  
Author(s):  
Chengzhi Long ◽  
Jing Lin
Keyword(s):  
Competitive Advantage ◽  
Empirical Evidence ◽  
Two Dimensions ◽  
Environmental Responsibility ◽  
Brand Value ◽  
Corporate Environmental Responsibility ◽  
Content Type ◽  
Chinese Context ◽  
The Impact ◽  
The Relationship

PurposeThough enormous research studies were conducted on corporate environmental responsibility (CER), few of them could empirically justify how CER helps to improve firm’s competitive advantage and firms are still hesitant to incorporate CER with their business strategy at present. The purpose of this paper is to theoretically and empirically explore how the CER strategy could help the firm to gain competitive advantage in Chinese context, particularly in terms of achieving brand sustainability (BS).Design/methodology/approachIn this study, 310 listed companies in China were chosen as research sample. First, the CER strategies were classified into developing eco-friendly products, adopting EMAS or other eco-management, enhancing the impact of CER through value chain and charitable CER. Second, BS is constructed as two dimensions, i.e. resource-acquisition and consumer impact. Accordingly, this paper analyzed the relationship between CER and BS with regression model analysis, taking account of several moderating and control variables.FindingsThe results indicate that CER strategies have positive effect on BS. Among all CER strategies, developing eco-friendly products and charitable CER undertakings are the most effective ones to promote BS performance. Also, the paper found that the length of time in adopting CER strategy moderates the effect of CER on BS. The empirical evidence proves that CER strategies could enhance the brand value in terms of BS and help the company to gain competitive advantage.Research limitations/implicationsFirst, most of our samples are of the state-owned enterprises, so our assumption might not be applicable to other types of business. Second, corporate social responsibility (CSR) communication is an important factor in the relation between CSR and corporate performance, but it is not taken into account in this study. Third, the difference in industries and ownership in this research is out of concern.Practical implicationsAs this paper has provided empirical evidence to reveal the effectiveness of different CER strategies, firms in China could be more motivated to undertake CER not only for the sake of environment but also for their brand value and competitive advantage. More importantly, this paper could be a valuable reference for the firms in China to choose suitable and effective CER strategies, as proved in this study, to gain competitive advantage in the market.Originality/valueAt first, while public environmental awareness has improved gradually, we introduce the BS concept to explain how the CER strategies affect CCA. This approach gives us another perspective to highlight the relationship between these two constructs. Second, we conducted our research from practical perspective to explore how to apply the CER undertakings as the company’s strategy. Third, we conducted our empirical research in Chinese context, which will enrich the theoretical CER and CSR literature.

Sign in / Sign up

Export Citation Format

Share Document