Does Corporate Sustainability Performance Increase Corporate Financial Performance? Focusing on the Information and Communication Technology Industry in Korea

2017 ◽  
Vol 26 (3) ◽  
pp. 243-254 ◽  
Author(s):  
Seonmin Jung ◽  
Changi Nam ◽  
Dong-Hoon Yang ◽  
Seongcheol Kim
Keyword(s):  
Financial Performance ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Corporate Sustainability ◽  
Corporate Financial Performance ◽  
Sustainability Performance ◽  
Technology Industry ◽  
Corporate Sustainability Performance ◽  
Information And Communication

scholarly journals Relationship between corporate sustainability performance and corporate financial performance: evidence from U.S. companies

Equilibrium ◽  
2021 ◽  
Vol 16 (4) ◽  
pp. 885-906
Author(s):  
Agnieszka Matuszewska-Pierzynka
Keyword(s):  
Financial Performance ◽  
Empirical Research ◽  
Empirical Studies ◽  
Corporate Sustainability ◽  
Value Added ◽  
Corporate Financial Performance ◽  
Sustainability Performance ◽  
Corporate Sustainability Performance ◽  
The Relationship ◽  
A Company

Research background: Sustainable development at the enterprise level is understood as the integration of economic, environmental and social dimensions aimed at meeting the needs of all firm?s stakeholders in the present and in the future. Therefore, it is crucial to evaluate the relationship between economic, environmental and social sustainability performance of a company and its financial performance. Purpose of the article: Considering the business model for sustainability as well as the debatable results of empirical research on the relationship between corporate sustainability performance (CSP) and corporate financial performance (CFP), the essential aim of the paper is to answer the question whether the improvement of corporate sustainability performance in its all particular dimensions brings about higher total revenues (TR) of a company. Methods: The main method of empirical research is panel regression models based on Cobb-Douglas production function, which has been extended to include variables of corporate sustainability scores. The selection between pooled OLS model, random-effects model and fixed-effects model has been made with the use of the F test, the Breusch-Pagan test and the Hausman test. Additionally, descriptive statistics and the Pearson correlation coefficients have been analyzed. The empirical studies were conducted in the period 2014?2019 among the 59 largest U.S. companies listed in the Fortune 500 ranking between 2015?2020. Findings & value added: The research hypothesis assuming the existence of positive relationship between corporate sustainability performance (CSP) at both aggregate and disaggregate levels and corporate financial performance (CFP) expressed by TR cannot be positively verified. It means that the improvement of corporate sustainability performance in environmental, social and governance dimensions does not lead to an increase in TR of a company, as some empirical studies suggest.

scholarly journals CORPORATE SUSTAINABILITY PERFORMANCE AND FINANCIAL PERFORMANCE: MODERATING EFFECT OF BOARD COMPOSITION

2021 ◽  
Vol 4 (2) ◽  
pp. 245-256
Author(s):  
Ferina Nurlaily ◽  
Ahadiyah Adinia Rahmi
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Corporate Sustainability ◽  
Linear Regression Analysis ◽  
Moderating Effect ◽  
Independent Directors ◽  
Sustainability Performance ◽  
Female Directors ◽  
Corporate Sustainability Performance ◽  
Study Results

This study analyzes the moderating effect of the composition of female directors and the composition of independent directors on CSP and ROA. The purpose of this study is to analyze the effect of the disclosure of Corporate Sustainability Performance (CSP) on the Return on Assets (ROA) as a proxy for the company's financial performance. The population of this study is companies listed on the SRI-KEHATI index during the period November 2016– October 2019. The research hypotheses were tested using linear regression analysis and moderated regression analysis. The study results found that CSP has a significant effect on the company's ROA. The better and more complete the CSP disclosure, the higher the ROA. Furthermore, the composition of female and independent directors does not significantly affect CSP on corporate financial performance. This study implies that female directors and the composition of the independent board are more for compliance with regulatory requirements.

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