scholarly journals Do Corporate Environmental Sustainability Practices Influence Firm Value? The Role of Independent Directors: Evidence from Saudi Arabia

2020 ◽  
Vol 12 (22) ◽  
pp. 9768
Author(s):  
Mohammed Abdullah Ammer ◽  
Meqbel Mishary Aliedan ◽  
Mansour Abdullah Alyahya
Keyword(s):  
Environmental Sustainability ◽  
Firm Value ◽  
Independent Directors ◽  
Environmental Reporting ◽  
Environmental Practices ◽  
Listed Firms ◽  
Board Directors ◽  
Sustainability Practices ◽  
Using Data ◽  
Corporate Environmental Sustainability

Environmental sustainability has become a significant approach for firms to enhance their competitive advantage and reputation. This study examines the association between environmental sustainability disclosures and firm value, in addition to the moderating impact of independent board directors on this association. Using data from Saudi listed firms, we find that reporting environmental sustainability practices has a positive and significant impact on firm value, suggesting that enhanced responsibility and transparency in addition to improved stakeholder trust are important in promoting firm value. We also find that the influence of the reported environmental sustainability practices on firm value is strongly and positively moderated by the presence of independent directors on firms’ boards, signifying that stakeholders relate environmental reporting by firms to more independent directors providing better accountability to environmental practices. The implications of this study will be of great importance for policymakers, firm management, academia, and investors in considering the adoption and importance of firms’ environmental practices.

Returnee Directors and Corporate Tax Avoidance

2021 ◽  
pp. 0148558X2110173
Author(s):  
Jia Chen ◽  
Dongjie Chen ◽  
Li Liu ◽  
Zhong Wang
Keyword(s):  
Instrumental Variable ◽  
Tax Avoidance ◽  
Independent Directors ◽  
Positive Relation ◽  
Corporate Tax ◽  
Listed Firms ◽  
Board Directors ◽  
Low Levels ◽  
Using Data ◽  
Work Abroad

This study evaluates the effect of returnee directors on corporate tax avoidance by using data on publicly listed Chinese companies from 2000 to 2012. Returnee directors grow up in China and then study or work abroad before returning home to be listed firms’ board directors. We use the introduction of provincial policies toward attracting skilled individuals with foreign experience as an instrumental variable for Returnee directors, which is the fraction of returnee directors divided by the total number of directors within a firm. Using quantile regression, we find a positive relation between Returnee directors and corporate tax avoidance for low levels of tax avoidance but a negative relation for high levels of tax avoidance. The result is robust to a battery of tests. The relation between returnee directors and tax avoidance is stronger for state-owned enterprises (SOEs) than non-SOEs and stronger for returnees who hold MBA degrees, possess a background in accounting or auditing, or are independent directors than other returnees.

scholarly journals The Ecuadorian Banana Farms Managers’ Perceptions: Innovation as a Driver of Environmental Sustainability Practices

Agriculture ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 213
Author(s):  
Alicia Ramírez-Orellana ◽  
Daniel Ruiz-Palomo ◽  
Alfonso Rojo-Ramírez ◽  
John E. Burgos-Burgos
Keyword(s):  
Information Systems ◽  
Environmental Sustainability ◽  
Structural Equation ◽  
Equation Modeling ◽  
Environmental Practices ◽  
Sustainability Practices ◽  
Policy Incentives ◽  
The Impact ◽  
And Training

This article aims to explore the perceptions of banana farms managers towards environmental sustainability practices through the impact of innovation, adoption of information systems, and training employees through a case study in the province of El Oro (Ecuador). Furthermore, the paper assesses how farmers’ perceptions could guide public policy incentives. PLS-Structural Equation Modeling are used as the framework by which the constructs is represented within the model. The model explained 59% of the environmental sustainability practices of Ecuadorian banana farms. The results indicate that environmental sustainability practices were positively influenced mainly by training employees, innovation, and adoption of information systems. Additionally, both the adoption of information systems and training employees indirectly influenced sustainable practices through innovation as a mediator. We may conclude that in the Ecuadorian banana farms, changes in environmental practices are derived from innovation strategies as an axis of development of useful information and training employees in public policies.

A cross-sectional analysis of reported corporate environmental sustainability practices

2010 ◽  
Vol 58 (3) ◽  
pp. 524-538 ◽  
Author(s):  
Dallas M. Cowan ◽  
Pamela Dopart ◽  
Tyler Ferracini ◽  
Jennifer Sahmel ◽  
Kimberly Merryman ◽  
...  
Keyword(s):  
Environmental Sustainability ◽  
Cross Sectional ◽  
Cross Sectional Analysis ◽  
Sustainability Practices ◽  
Corporate Environmental Sustainability ◽  
Sectional Analysis

Independent directors and firm value of group-affiliated firms

2017 ◽  
Vol 25 (2) ◽  
pp. 217-236 ◽  
Author(s):  
Amrinder Khosa
Keyword(s):  
Ownership Structure ◽  
Firm Value ◽  
Value Relevance ◽  
Institutional Setting ◽  
Independent Directors ◽  
Board Independence ◽  
Outside Directors ◽  
Content Type ◽  
Listed Firms ◽  
Indian Setting

Purpose This study aims to examine the effect of board independence on firm valuation of group-affiliated firms in distinct Indian setting. Design/methodology/approach This study uses a sample of 317 listed firms comprising 1,350 firm-year observations for the period 2008-2012. The value-relevance model is used to examine the effect of board independence on market value of equity. Findings The distinct finding of an inverse relationship between board independence and firm value of group-affiliated firms in India illustrates that effective monitoring by outside directors is largely influenced by the institutional setting and ownership structure. This study does not find any evidence of different valuation when comparing non-family CEOs and family CEOs. Practical implications Independent directors play an important role to stop abusive use of related-party transactions in an environment where principal–principal conflict exists. The study’s findings will prove useful in determining whether one should rely merely on the independent status of outside directors or the influence of institutional setting on effective governance. Originality/value This paper contributes to the existing literature in the following ways: it helps to gain a better understanding of business groups which are characterised by unique governance structures and the dominance of controlling families on the board, which makes the external governance mechanisms (i.e. independent directors and non-family CEOs) ineffective and it illustrates that effective monitoring by outside directors is largely influenced by the institutional setting and ownership structure.

Do hotel companies communicate their environmental policies and practices more than independent hotels in Dubai, UAE?

2014 ◽  
Vol 6 (4) ◽  
pp. 362-380 ◽  
Author(s):  
Nina Rosalind Jenkins ◽  
Ioanna Karanikola
Keyword(s):  
United Arab Emirates ◽  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Corporate Image ◽  
Environmental Reporting ◽  
Environmental Practices ◽  
Content Type ◽  
Corporate Websites ◽  
Independent Hotels ◽  
The Impact

Purpose – This paper aims to ascertain how hotels in Dubai, United Arab Emirates (UAE), engage in environmental sustainability and what benefits and negativities can be incurred from such activity, and to determine the extent to which hotels use their own corporate websites to disseminate information pertaining to their environmental sustainability. Design/methodology/approach – The concept of corporate social responsibility (CSR) in business has infiltrated since the latter half of the twentieth century. The hotel industry claims to engage in environmental sustainability due to the impact hotels have on the environment and considering the benefits that can arise from being environmentally friendly, such as positive corporate image and awareness of company’s stakeholders regarding company’s policies, practices and initiatives. A literature review regarding the current, most commonly used environmental practices and policies of hotels was conducted and content analysis was carried out in websites of companies and independent hotels in Dubai, UAE. Findings – Key findings showed that the environmental practices and policies which were the cheapest and easiest to implement were the most commonly used among hotels, and that hotel companies provided more corporate online environmental information than independent hotels. Overall, currently, hotels in Dubai do not effectively use online environmental reporting to their stakeholders, which should be an area of improvement by 2020. Research limitations/implications – Further research should be conducted in small and medium enterprises to identify benefits and challenges of and create awareness of the importance of online environmental reporting preparing for Expo2020. Originality/value – The analysis presented aims to highlight the importance of online environmental reporting by hotels and to compare and contrast ways of communicating CSR activities between hotel companies and independent hotels in Dubai, UAE.

scholarly journals Board Directors’ Expertise and Corporate Corruption Disclosure: The Moderating Role of Political Connections

2019 ◽  
Vol 11 (16) ◽  
pp. 4491 ◽  
Author(s):  
Masud ◽  
Bae ◽  
Manzanares ◽  
Kim
Keyword(s):  
Resource Dependence ◽  
Moderating Effect ◽  
Political Connections ◽  
Corporate Management ◽  
Positive Role ◽  
Listed Firms ◽  
Board Directors ◽  
Using Data ◽  
The Relationship

Professional expert directors extensively influence corporate corruption disclosure (CCD), while higher political connections may exacerbate corporate management. This study investigates the relationship between the presence of external experts on a board and CCD, as well as the moderating effect of political connections, on the positive role of legal experts in CCD. The study combines agency, resource dependence and stakeholder theories to show how resourceful directors on the board can promote corruption disclosure. Using data on listed firms in the Bangladeshi financial sector, the study analyzes 247 firm-year observations from 2012 to 2016. The results of a multiple regression analysis indicate that accounting experts, legal experts, political connections and corporate media visibility each have a positive and significant influence on CCD. Moreover, the moderating effect of political connections on the relationship between legal experts and CCD is negative and significant due to their higher political influences. The study has significant implications for corporate governance and for policies concerning the development of the economy while reducing corruption.

scholarly journals Ownership structure, board of directors and firm performance: evidence from Taiwan

2019 ◽  
Vol 19 (1) ◽  
pp. 189-216 ◽  
Author(s):  
Mao-Feng Kao ◽  
Lynn Hodgkinson ◽  
Aziz Jaafar
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Firm Value ◽  
Listed Companies ◽  
Independent Directors ◽  
Data Set ◽  
Content Type ◽  
Listed Firms

PurposeUsing a data set of listed firms domiciled in Taiwan, this paper aims to empirically assess the effects of ownership structure and board of directors on firm value.Design/methodology/approachUsing a sample of Taiwanese listed firms from 1997 to 2015, this study uses a panel estimation to exploit both the cross-section and time–series nature of the data. Furthermore, two stage least squares (2SLS) regression model is used as robustness test to mitigate the endogeneity issue.FindingsThe main results show that the higher the proportion of independent directors, the smaller the board size, together with a two-tier board system and no chief executive officer duality, the stronger the firm’s performance. With respect to ownership structure, block-holders’ ownership, institutional ownership, foreign ownership and family ownership are all positively related to firm value.Research limitations/implicationsAlthough the Taiwanese corporate governance reform concerning the independent director system which is mandatory only for newly-listed companies is successful, the regulatory authority should require all listed companies to appoint independent directors to further enhance the Taiwanese corporate governance.Originality/valueFirst, unlike most of the previous literature on Western developed countries, this study examines the effects of corporate governance mechanisms on firm performance in a newly industrialised country, Taiwan. Second, while a number of studies used a single indicator of firm performance, this study examines both accounting-based and market-based firm performance. Third, this study addresses the endogeneity issue between corporate governance factors and firm performance by using 2SLS estimation, and details the econometric tests for justifying the appropriateness of using 2SLS estimation.

scholarly journals Governance, board diversity and firm value: The case of the Italian publicly listed firms

2010 ◽  
Vol 8 (1) ◽  
pp. 637-645 ◽  
Author(s):  
Giovanni Bronzetti ◽  
Romilda Mazzotta ◽  
Graziella Sicoli
Keyword(s):  
Firm Value ◽  
Independent Directors ◽  
Board Size ◽  
Board Diversity ◽  
Listed Firms ◽  
Leadership Structure

This paper investigates the relations firm on board diversity and firm value on a sample of Italian Publicly listed firm. Specifically, we look at the composition of boards (as defined board size, Majority of independent directors, leadership structure) and at his diversity (defined as the percentage of women and directors of other, average age of the board, other board’s member appointment). We provide evidence that board diversity positively affect performance.

scholarly journals Risk Disclosure and Firm Value: Evidence from the United Kingdom

2021 ◽  
Vol 8 (55) ◽  
pp. 15-24
Author(s):  
Tache Marta
Keyword(s):  
United Kingdom ◽  
Financial Reporting ◽  
Firm Value ◽  
Quantitative Information ◽  
Financial Instruments ◽  
Risk Disclosure ◽  
Listed Firms ◽  
Ifrs 7 ◽  
Using Data ◽  
Risk Disclosures

Abstract The International Accounting Standard Board (IASB) aimed to increase the decision usefulness of firms’ risk disclosures with the 2007 introduction of the International Financial Reporting Standards (IFRS) 7. Specifically, listed firms were mandated to provide information to the market on both their (1) exposure and (2) risk management, which are associated with holding their financial instruments. This study investigates whether IFRS 7 financial instruments and their disclosures are associated with firm valuation. Using data on premiumlisted United Kingdom (UK) companies, for the period 2007–2019, I find evidence that firm value (proxied by Tobin's Q) is negatively associated with the quantity of IFRS 7 interest and credit risk disclosures. I further find that the market value decreases with the presence of quantitative information tabulated in the disclosures. The findings of this study have important implications for the IASB's standard-setting process.

Environmental Sustainability Practices for SMEs

2019 ◽  
pp. 989-1008
Author(s):  
Gurudas Nulkar
Keyword(s):  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Business Strategies ◽  
Economic Activities ◽  
Environmental Practices ◽  
The World ◽  
Green Business ◽  
Sustainability Practices ◽  
Medium Enterprises ◽  
Managerial Capabilities

The rate and scale of environmental degradation, through economic activities, has triggered widespread awakening among businesses, governments and civil society. The world over, corporations have responded by adopting sustainability practices and reporting. However, much of these happen within the premises of the corporations. As larger organizations outsource their manufacturing and service operations to small and medium enterprises (SMEs), they effectively shift their environmental burden on their vendors. In most developing countries, poor regulations and weak enforcement of environment laws leave the SMEs on their own, to improve their environmental practices. However, their limited resources and managerial capabilities are often inadequate to undertake sustainability practices. This chapter presents the findings of a research conducted among engineering SMEs in India. It proposes a lifecycle approach towards environmental practices and discusses potential business benefits and value creation from this. The chapter gives a roadmap for green business strategies, which SMEs can implement within their organization.

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