scholarly journals Corporate Sustainability and Stock Value in Asian–Pacific Emerging Markets: Synergies or Tradeoffs among ESG Factors?

2021 ◽  
Vol 13 (11) ◽  
pp. 6458
Author(s):  
Pornanong Budsaratragoon ◽  
Boonlert Jitmaneeroj
Keyword(s):  
Synergistic Effect ◽  
Economic Performance ◽  
Social Engagement ◽  
Structural Equation ◽  
Value Relevance ◽  
Corporate Sustainability ◽  
Stock Value ◽  
Sustainability Practices ◽  
Asian Pacific ◽  
The Individual

We use structural equation modelling to examine whether multi-dimensional corporate sustainability (CS)—measured by environmental, social and governance (ESG) factors—affects stock value. We find that investors are willing to pay for each dollar of earnings that the highly rated ESG company generates. Moreover, the positive synergistic effect among the ESG factors implies that companies that focus on any single dimension or the equally weighted aggregation of ESG factors understate the value relevance of CS. In other words, successful sustainability practices should comprise all of the dimensions of CS in order to gain benefit from their synergistic effect with stock value. However, the synergistic effect among ESG factors does not imply that the individual components of CS should be weighted equally in sustainability practices. Our findings show that social engagement emerges as the main driver of CS and should be weighted more heavily than the other factors in sustainability practices. Interestingly, when we account for corporate economic performance, we find that investors put more (less) value on CS when corporate economic performance is weak (strong). This implies that economic performance and ESG performance contain similar information, and that their effects on stock value subsume each other.

scholarly journals Impact of Environmental, Social, and Governance Information on Economic Performance: Evidence of a Corporate ‘Sustainability Advantage’ from Europe

2019 ◽  
Vol 11 (6) ◽  
pp. 1738 ◽  
Author(s):  
Marco Taliento ◽  
Christian Favino ◽  
Antonio Netti
Keyword(s):  
Structural Equation ◽  
Corporate Sustainability ◽  
Equation Modeling ◽  
Absolute Level ◽  
Agenda 2030 ◽  
Modeling Methodology ◽  
Sustainability Disclosure ◽  
The Individual ◽  
Corporate Social ◽  
The Impact

Both UN Agenda 2030 and the Directive n. 2014/95/EU have recently promoted a marked improvement in sustainability disclosure, especially for larger companies or groups. Starting from this premise, we carried out an original study on the financial materiality of the E-S-G (environmental, social and governance) information of primary companies listed on major European indices in Belgium, France, Germany, Italy and Spain (BEL, CAC, DAX, FTSE-MIB, IBEX). Within the Stakeholder Theory and the Corporate Social Responsibility (CSR)–Corporate Social Perfomance (CSP) framework, our empirical analysis examined the impact of non-financial results (assessed through sustainability indicators) on economic (financial and market) performance in the timespan 2014–2017. We propose a different approach from previous studies, based on a PLS (Partial least squares)/SEM (Structural equation modeling) methodology together with the unprecedented consideration of “ESG” measures (Environmental, Social and Governance), either absolute (scores) or relative (extra-performance over industry sector). We find that, despite the absolute level of the individual ESG scores not being impactful, the “distance” from the industry average–normal figures (excess or abnormal ESG performance) is positively relevant, collaterally revisiting the notion of competitive advantage in sustainability terms. Corporate size is shown to be a significant background factor (as slack resources proxy). Social, environmental and governance responsibility (to all stakeholders) appear to be important as a competitive factor of the modern firm.

scholarly journals Impact of Sustainability Approaches on Organizational Economic Performance: Intervening Role of Quality and Innovative Performance

2018 ◽  
Vol III (I) ◽  
pp. 9-17
Author(s):  
Afraseyab Khattak ◽  
Sajid Rahman Khattak
Keyword(s):  
Regression Analysis ◽  
Organizational Performance ◽  
Economic Performance ◽  
Mediation Analysis ◽  
Corporate Sustainability ◽  
Study Data ◽  
Innovative Performance ◽  
Instrument Validity ◽  
Sustainability Practices ◽  
The Relationship

The idea of corporate sustainability practices has received a lot of attention from management analysts and scholars because it has been shown to have a positive effect on organizational performance. The aim of this study was to find whether QP and IP mediates the relationship between sustainability practices and organizational economic performance. To investigate the specified relationship, Purposive sampling was used to select 227 employees from the banking to participate in this study. Data was collected using a closed-ended questionnaire with a five-point Likert-type scale. Instrument validity was measured through exploratory factor analysis, and instrument reliability was measured using Cronbach's alpha. Regression analysis was used to test the research hypotheses, and for indirect effect mediation analysis was used. according to regression analysis, Sustainability exploration and exploitation have a significant and positive relationship with organizational economic performance. The results of the mediation analysis suggest that the relationship between the sustainability practices and organizational economic performance is mediated by both quality and innovative performance. The study found that the ability to survive in this competitive environment, businesses must change their concentration from short-term benefits to long-term sustainable benefits.

University Dropout

2008 ◽  
Vol 29 (3) ◽  
pp. 134-147 ◽  
Author(s):  
Manuel C. Voelkle ◽  
Nicolas Sander
Keyword(s):  
Grade Point Average ◽  
Structural Equation ◽  
Unobserved Heterogeneity ◽  
School Grade ◽  
Grade Point ◽  
High School Grade ◽  
Hands On ◽  
University Dropout ◽  
The Individual ◽  
A Prospective Study

University dropout is a politically and economically important factor. While a number of studies address this issue cross-sectionally by analyzing different cohorts, or retrospectively via questionnaires, few of them are truly longitudinal and focus on the individual as the unit of interest. In contrast to these studies, an individual differences perspective is adopted in the present paper. For this purpose, a hands-on introduction to a recently proposed structural equation (SEM) approach to discrete-time survival analysis is provided ( Muthén & Masyn, 2005 ). In a next step, a prospective study with N = 1096 students, observed across four semesters, is introduced. As expected, average university grade proved to be an important predictor of future dropout, while high-school grade-point average (GPA) yielded no incremental predictive validity but was completely mediated by university grade. Accounting for unobserved heterogeneity, three latent classes could be identified with differential predictor-criterion relations, suggesting the need to pay closer attention to the composition of the student population.

Collective Efficacy and Organizational Commitment in an Italian City Hall

2009 ◽  
Vol 14 (4) ◽  
pp. 363-371 ◽  
Author(s):  
Laura Borgogni ◽  
Silvia Dello Russo ◽  
Laura Petitta ◽  
Gary P. Latham
Keyword(s):  
Organizational Commitment ◽  
Collective Efficacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Practical Significance ◽  
City Hall ◽  
Italian City ◽  
Public Sector Managers ◽  
The Individual ◽  
Level Group

Employees (N = 170) of a City Hall in Italy were administered a questionnaire measuring collective efficacy (CE), perceptions of context (PoC), and organizational commitment (OC). Two facets of collective efficacy were identified, namely group and organizational. Structural equation models revealed that perceptions of top management display a stronger relationship with organizational collective efficacy, whereas employees’ perceptions of their colleagues and their direct superior are related to collective efficacy at the group level. Group collective efficacy had a stronger relationship with affective organizational commitment than did organizational collective efficacy. The theoretical significance of this study is in showing that CE is two-dimensional rather than unidimensional. The practical significance of this finding is that the PoC model provides a framework that public sector managers can use to increase the efficacy of the organization as a whole as well as the individual groups that compose it.

Effect of Organizational Culture and Organizational Commitment to Employee Performance through Organizational Citizenship Behavior (OCB) as Intervening Variables (Study on Bappeda Litbang Provinsi Bali)

2018 ◽  
Vol 9 (08) ◽  
pp. 20997-21013
Author(s):  
Anom Suwibawa ◽  
Anak Agung Putu Agung ◽  
I Ketut Setia Sapta
Keyword(s):  
Organizational Culture ◽  
Organizational Commitment ◽  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Structural Equation ◽  
Employee Performance ◽  
Sem Analysis ◽  
Citizenship Behavior ◽  
Equation Modeling ◽  
The Individual

Organizational culture as the values, principles, traditions and ways of working shared by members of the organization and affect the way they act. Organizational commitment has an important role of employee performance. The commitment can be realized if the individual in the organization, running their rights and obligations according to their duties and functions and functions within the organization, because the achievement of organizational goals is the work of all members of the organization that are collective Vipraprastha, Sudja,  & Yuesti (2018). Respondents in this study are Civil Servants (PNS) at least have been working for 2 years. The number of respondents in this study were 86 respondents using Nonprobability technique that is saturated samples or often called total sampling. This research uses SMARTPLS 3 Structural Equation Modeling (SEM) analysis. The results of this study indicate that: 1) organizational culture has a positive and significant effect on Organizational Citizenship Behavior (OCB); 2) Organizational Citizenship Behavior (OCB) has positive and significant impact on Organizational Citizenship Behavior (OCB); 3) Organizational Citizenship Behavior employee, 4) organizational culture has a positive effect on the performance of employees, either partially or through Organizational Citizenship Behavior (OCB), 5) Organizational commitment has no effect on employee performance.

FACTORS AFFECTING ECONOMIC PERFORMANCE THROUGH PARTICIPATION OF ZAKAT RECIPIENT IN DEVELOPING BUSINESS

2019 ◽  
Vol 24 (3) ◽  
pp. 243-250
Author(s):  
Estiningsih ◽  
Sundari
Keyword(s):  
Social Capital ◽  
Economic Performance ◽  
Structural Equation ◽  
High Reliability ◽  
Hypothesis Test ◽  
Reliability And Validity ◽  
Community Empowerment ◽  
Primary Data ◽  
Equation Modeling ◽  
Empowerment Program

Community empowerment is a form of development which directly involves the community. In community empowerment program, the position of the community is as program consumer but as program producer instead. Community empowerment aims to achieve community independence and welfare. Zakat is a subsystem which can support community empowerment program. It’s consistent with the objective of zakat, which is material and spiritual wellbeing. To encourage the success of the program, there should be support from various parties, including companion and social capital supports.The purpose of the present study was determining the direct effects of companion and social capital on participant of zakat recipient and its impact of economic performance of zakat-receiving micro businessman. The present study used primary data by involving 72 zakat-receiving micro businesspeople (mustahik businesspeople) in Wonosari Sub-district, Gunung Kidul Regency, Special Region of Yogyakarta. The research instrument was questionnaire with likert-5 scale which has high reliability and validity based on Cronbah Alpha and Kaiser-Meyer-Olkin values. The empirical model was analyzed using Structural Equation Modeling (SEM).The result of hypothesis test shows that companion and social capital affected the participation of zakat recipient, and the participation of zakat recipient affected the economic performance of zakat-receiving micro businessman.

The Association between Sustainability Governance Characteristics and the Assurance of Corporate Sustainability Reports

2014 ◽  
Vol 34 (1) ◽  
pp. 163-198 ◽  
Author(s):  
Gary F. Peters ◽  
Andrea M. Romi
Keyword(s):  
Value Relevance ◽  
Corporate Sustainability ◽  
Accounting Firms ◽  
Internal Auditors ◽  
Corporate Governance Mechanisms ◽  
Assurance Services ◽  
The Board Of Directors ◽  
Contextual Characteristics ◽  
Sustainability Reports ◽  
Sustainability Report

SUMMARY This study provides evidence on whether sustainability-oriented corporate governance mechanisms impact the voluntary assurance of corporate sustainability reports. Specifically, we consider the presence and characteristics of environmental committees on the Board of Directors and a Chief Sustainability Officer (CSO) among the management team. When examining assurance services, we make a distinction between those services performed by professional accountants, consultants, and internal auditors. We find that the presence of a CSO is positively associated with corporate sustainability report assurance services, and this association increases when the CSO has sustainability expertise. Supporting the position that some firms establish sustainability-related governance merely to conform to socially desired behavior, we find that only those environmental committees containing directors with related expertise influence the likelihood of adopting sustainability assurance. Presently, environmental committees with greater expertise appear to prefer the higher-quality assurance services of professional accounting firms. Expert CSOs, on the other hand, prefer assurance services from their peers with sustainability expertise, as evidenced by their choice to employ consultants. When analyzing firms' environmental contextual characteristics, we find that firms employing a CSO and exhibiting poor environmental performance, relative to other firms in their industry, prefer to report sustainability results without assurance. While we do find that larger firms in the U.S. are significantly less likely to employ assurance, this result decreases over time. Further, we provide initial evidence that the value-relevance of sustainability assurance is increasing with time.

scholarly journals Intellectual Capital and Sustainable Economic Performance in the Public Sector: The Context of the New Public Management in Malaysia

2021 ◽  
Vol 13 (14) ◽  
pp. 7885
Author(s):  
Kardina Kamaruddin ◽  
Indra Abeysekera
Keyword(s):  
Public Sector ◽  
Intellectual Capital ◽  
Economic Performance ◽  
Public Management ◽  
Structural Equation ◽  
New Public Management ◽  
The Public ◽  
New Public ◽  
Operational Variables ◽  
Construct Dimensions

The New Public Management allows us to reflect upon whether intellectual capital helps public sector organisations meet their performance benchmarks. Sustainable economic performance gains importance from the public sector’s service ideal. Although there have been empirical endeavours using intellectual capital as operational variables, this study examines the theoretically informed relationship between the intellectual capital construct and its construct dimensions and the sustainable economic performance construct and its construct dimensions. The decision-making inputs of senior officials in the Malaysian public sector are vital for evaluating the relationship, as these officials are the individual strategists of the collective organisational strategy. The study conducted a survey that received 1092 usable responses and analysed them using the structural equation modelling research method. The findings showed a robust theoretical relationship between intellectual capital and sustainable economic performance. Furthermore, the study identified intellectual capital items that play a vital role in supporting public sector sustainable economic performance in Malaysia under New Public Management. The findings provide useful knowledge for public sector officials and policymakers, and for further research.

Exploring Global Fashion Sustainability Practices through Dictionary-Based Text Mining

2021 ◽  
pp. 0887302X2199826
Author(s):  
Muzhen Li ◽  
Li Zhao
Keyword(s):  
Latent Dirichlet Allocation ◽  
Corporate Sustainability ◽  
Computer Assisted ◽  
Competitive Advantages ◽  
Bottom Line ◽  
Product Categories ◽  
Sustainability Strategies ◽  
Line Theory ◽  
Sustainability Practices ◽  
Sustainability Theory

Nowadays, more fashion companies have started to adopt various sustainability practices and communicate these practices through their annual public CSR reports. In this study, we aim to provide a holistic perspective of fashion companies’ sustainable development and investigate the sustainability practices of global fashion companies. A total of 181 CSR reports from 29 fashion companies were collected. A Dictionary approach text classification method, combined with Latent Dirichlet Allocation (LDA), a computer-assisted topic modeling algorithm, was implemented to detect and summarize the themes and keywords of detailed practices disclosed in CSR reports. The findings identified 12 main sustainability practices themes based on the triple bottom line theory and the moral responsibility of corporate sustainability theory. In general, waste management and human rights are the most frequently mentioned themes. The findings also suggest that global fashion companies adopted different sustainability strategies based on their product categories and competitive advantages.

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