ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi ◽  
Matteo Rossi
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediation Effect ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Thomson Reuters ◽  
The Board Of Directors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.Design/methodology/approachTo test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.FindingsThe results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.Practical implicationsThe findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.Originality/valueThis study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

Unpacking the black box

2020 ◽  
Vol 21 (6) ◽  
pp. 809-834 ◽  
Author(s):  
Kaveh Asiaei ◽  
Omid Barani ◽  
Nick Bontis ◽  
Maryam Arabahmadi
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Content Type ◽  
Knowledge Resources ◽  
Mediating Role ◽  
Strategic Resources ◽  
Structural Capital ◽  
Resource Orchestration ◽  
The Relationship

PurposeDrawing largely upon resource orchestration theory, this study aims to contribute to the intellectual capital (IC) literature by testing a model where intrapreneurship mobilizes resources to trigger firm performance. More specifically, this study investigates how intrapreneurship mediates the relationship between IC and financial performance.Design/methodology/approachData was collected using a structured questionnaire administered to a target sample of publicly-listed Iranian companies across a variety of sectors. Archival data supplemented the survey findings to capture financial performance. A structural equation modelling (SEM) approach, using LISREL, was used to assess the measurement and structural models.FindingsThe results supported the hypothesized associations among IC, intrapreneurship, and financial performance. Furthermore, the findings provided some evidence that IC is indirectly related to financial performance through the mediating role of intrapreneurship.Research limitations/implicationsThe focus on Iranian publicly listed companies limits the generalizability of results.Practical implicationsManagers need to align the company's strategic resources with other competencies such as intrapreneurial initiatives. The synthesis of knowledge resources and intrapreneurship can help organization to better organize, synchronize and support – i.e. “orchestrate” – their human and structural capital, improving the firm's social and innovation capital and eventually enhancing overall performance.Originality/valueTo our knowledge, this is the first study ever to explore the mediating role of intrapreneurship in the relationship between IC and financial performance from the resource orchestration lens.

Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs

2017 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Priyanka Jain ◽  
Vishal Vyas ◽  
Ankur Roy
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Geographical Area ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The relationship between corporate social responsibility (CSR) and financial performance (FP) is a much-researched topic in academic arena. Recent studies disclosed that intellectual capital (IC) significantly impacts the success and survival of organizations. Moreover, theoretical assertions confirm that competitive advantage (CA) mediates the association between IC and FP. This has opened up new dimensions for the study. Therefore, this study aims to develop a theoretical model, first, to specify these relations and, second, to explore the mediating role of IC and CA on the relation between CSR and FP in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Hypotheses are tested through a survey conducted on 384 SMEs in Rajasthan state. A structured questionnaire having 38 variables was used, and collected data are subjected to confirmatory factor analysis. Structural equation modeling was used to validate the measurement model and to test the mediating effect. Findings The findings indicate a weak positive relation between CSR and FP. The empirical data provide supportive evidence that IC has a profound impact on CSR and FP relationship. Specifically, it was noticed that the mediating role of CA on this relationship was not as reflective as described in the literature. Research limitations/implications The limitation of this study is that it is limited to one country, more specific to one geographical area of a country; therefore, findings of the study cannot be generalized in terms of its implications to other regions and countries. Originality/value Very few empirical studies have analyzed the mediating role of IC and CA on the relationship between CSR and FP. This study is expected to enable scholars and practitioners to have a more definite and direct understanding of the implication of IC and CA in association between CSR and FP.

Mediating role of immediate performance outcomes between supply chain integration and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikhat Afshan ◽  
Purnendu Mandal ◽  
Angappa Gunasekaran ◽  
Jaideep Motwani
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Performance Outcomes ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe purpose of this paper is to examine the mediating role of immediate performance outcomes on the relationship between dimensions of supply chain integration (SCI) and financial performance.Design/methodology/approachThis study tests the proposed model linking dimensions of SCI, immediate performance outcomes and financial performance using structural equation modeling on a sample of Indian manufacturing companies.FindingsThe findings suggest that the relationship between dimensions of SCI and firm performance is fully mediated through the immediate performance outcomes.Originality/valueThis study deals with the potential benefits of SCI, especially in developing countries like India, where a little research has been done in this area. Also, this study provides support to practitioners that SCI is an effective way of improving both supply chain performance and financial performance.

scholarly journals The role of financial resources in SMEs' financial and environmental performance; the mediating role of green innovation

Green Finance ◽  
2021 ◽  
Vol 4 (1) ◽  
pp. 36-53
Author(s):  
Rizwan Ullah Khan ◽  
◽  
Hina Arif ◽  
Noor E Sahar ◽  
Arif Ali ◽  
...  
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Manufacturing Firms ◽  
Financial Resources ◽  
Green Innovation ◽  
Mediating Role ◽  
Green Practices ◽  
The Government ◽  
The Relationship

<abstract> <p>The current study investigates the influence of financial resources on environmental and financial performance with the mediating role of green practices (innovation) in manufacturing firms of the emerging economy, Pakistan. The research model and its proposed hypothesis was using 294 manufacturing firms' samples, for fruitful insights, the hypothesis was tested through a structured equation model using Smart PLS 3. Our results exhibited a positive and significant impact of financial resources on financial performance but not on environmental performance. However, green innovation fully mediates the relationship between financial resources and financial performance, while partially mediate the relationship between financial resources and environmental performance. Considering our insight, we suggest to the government that financially support the SMEs sector because they have a lack of tangible and intangible resources due to small size, and to easily adapt the green practices.</p> </abstract>

The mediating role of customer related performance outcomes on the relationship between customer integration and firm performance

2018 ◽  
Vol 25 (7) ◽  
pp. 2184-2197 ◽  
Author(s):  
Nikhat Afshan ◽  
Jaideep Motwani
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Performance Outcomes ◽  
Research Model ◽  
Customer Integration ◽  
Content Type ◽  
Performance Outcome ◽  
Mediating Role ◽  
The Relationship

Purpose Even though supply chain integration (SCI) has been considered as a vital contributor to business performance, the research shows inconsistency in its finding. Accounting for these inconsistencies, researchers (Fabbe-Costes and Jahre, 2007; Van der Vaart and van Donk, 2008) have highlighted the need to relate the level of integration in a single relationship to the performance outcomes of that relationship. The purpose of this paper is to make an effort in this direction and investigate the impact of customer integration (an important dimension of SCI) on customer-related performance outcome (CRPO) and financial performance of the firm. Design/methodology/approach Based on an extensive literature review, a research model has been developed hypothesizing the relationships between customer integration, CRPO and financial performance. The research model is then tested using data collected from 214 Indian manufacturing companies. Structural equation modeling was used to test the hypothesized relationship between constructs of interest. Findings The result showed that there is no direct effect of customer integration on financial performance instead the relationship is fully mediated through CRPO. Originality/value This study conceptualizes and develops scale for the specific performance outcome resulting from a high level of integration between manufacturer and key customers and labels it as CRPOs. It further investigates the mediating role of this immediate performance outcome on the relationship between customer integration and firm performance.

The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chairani Chairani ◽  
Sylvia Veronica Siregar
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Enterprise Risk Management ◽  
Content Type ◽  
Thomson Reuters ◽  
Enterprise Risk ◽  
Moderating Role

Purpose This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social and governance (ESG) performance. Design/methodology/approach The samples in this study are listed companies in the ASEAN 5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) during the years 2014–2018, with total observations of 680 firm-years. Fixed effect panel data regressions were used to test the hypotheses. The data was collected from Financial Report, Annual Reports and Thomson Reuters. Findings The results show that ERM has a positive significant effect on financial performance and firm value. This paper also finds that ESG has a significant moderating role in increasing the effect of ERM on firm value. Further, this paper divides the samples into sensitive and non-sensitive industries and find a significant moderating role of ESG performance on firm performance for sensitive industries. Originality/value Extant studies have not empirically examined the moderating role of ESG on the effect of ERM on firm performance and firm value. The findings have important implications in suggesting that firms need to analyze various threats and opportunities related to and ESG risks in achieving competitive advantage.

The mediating role of trust to managers on the relationship between corporate reputation practices and employees’ course of actions to customers

2014 ◽  
Vol 10 (2) ◽  
pp. 282-296 ◽  
Author(s):  
Turhan Erkmen ◽  
Emel Esen
Keyword(s):  
Corporate Reputation ◽  
Participation Rate ◽  
Content Type ◽  
Mediating Role ◽  
Management Literature ◽  
The Board Of Directors ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this study is to examine the role of trust to managers on the relationship between corporate reputation practices and employees’ course of actions to customers in airline sector. Design/methodology/approach – A research questionnaire which measures corporate reputation, trust to managers and employees’ course of actions to customers was designed by the researchers. Three hundred forty-three employees who are working in nine different companies in an airline sector have participated in the research. Findings – According to the results of the study, corporate reputation practices and trust to managers have an effect on employees’ course of actions to customers; also trust to managers does not have any mediating role between these variables. Research limitations/implications – As this study is conducted in airline companies, we cannot generalize the results to the companies in other sectors. In addition, during the application of questionnaires, some participants found the questionnaire too long and they withdrew. This yielded to a lower participation rate. Practical implications – The findings of the study may get the board of directors’ or managers’ attention to the point that they should become aware of the importance of corporate reputation, corporate social responsibility, employees’ behaviors and trust in their organizations. Originality/value – This study aims to make several contributions to the marketing and management literature. Firstly, it extends the recent marketing and management literature on corporate reputation by examining trust to managers and employees’ behaviors.

The impact of leadership on firm financial performance: the mediating role of employees' readiness to change

2020 ◽  
Vol 41 (3) ◽  
pp. 333-347
Author(s):  
Kleanthis K. Katsaros ◽  
Athanasios N. Tsirikas ◽  
Georgia C. Kosta
Keyword(s):  
Financial Performance ◽  
Leadership Style ◽  
Readiness To Change ◽  
Shipping Industry ◽  
Content Type ◽  
Mediating Role ◽  
Firm Financial Performance ◽  
The Relationship ◽  
Practical Implications

PurposeThe aim of the research is to investigate the influence of leadership on firm financial performance and to explore the mediating role of employees' readiness to change.Design/methodology/approachThe paper hypothesizes that employees' readiness to change mediates the relationship between leadership and firm financial performance. A total of 213 employees of Greek shipping firms completed questionnaires examining their firms' leadership style and concurrently, their supervisors appraised their readiness to change. The research model was tested with the use of Structural Equation Modelling.FindingsThe research findings note the importance of leadership in fostering firm financial performance; they describe how each leadership style influences employees' readiness to change; as well as, they confirm that employee readiness mediates the relationship between leadership and firm financial performance. Theoretical and practical implications of these findings are analysed.Research limitations/implicationsGiven that the research was conducted during the severe Greek economic crisis, a time when employees' behaviour is highly influenced by distinctive and complex internal and external relationships, there is scope for further work to verify that the relationships identified in this study remain valid during periods when market conditions are more favourable.Practical implicationsThe findings provide further support on the significance of employees' readiness to change and the paper suggests policies for its development.Originality/valueThe originality of this study lies in the finding that employees' readiness to change mediates the relationship between leadership and firm financial performance. Further, the study was carried out in Greek shipping industry that plays a vital role in the international shipping industry which is responsible for the carriage of around 90% of world trade.

Enhancing environmentally friendly practices in SME agri-food upstream chains

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheila Namagembe
Keyword(s):  
Agricultural Practices ◽  
Environmentally Friendly ◽  
Decision Makers ◽  
Mediation Effect ◽  
Environmental Standards ◽  
Content Type ◽  
Mediating Role ◽  
Upstream Part ◽  
The Relationship

PurposeThe study examined the influence of environmental standards set by the SME agro-based processing firms and farmers' environmental empowerment on farmers' adoption of environmentally friendly agricultural practices; and the mediating role of empowerment on the relationship between SME agro-based processing firm environmental standards and farmers' adoption of environmentally friendly agricultural practices.Design/methodology/approachData was collected from purchasing managers of the agro-based processing firms. The SPSS software, SMART PLS and CB-SEM software were used to obtain results on the influence of environmental standards set by the SME agro-based processing firms on adoption of environmentally friendly agricultural practices; the influence of farmers' environmental empowerment on adoption of environmentally friendly agricultural practices and the mediating role of farmers' environmental empowerment on the relationship between SME agro-based processing firm environmental standards and farmers' adoption of environmentally friendly agricultural practices.FindingsFindings indicated that SME agro-processing environmental standards have an influence on farmers' adoption of environmentally friendly agricultural practices. Empowering farmers in environmental issues influenced their adoption of environmentally friendly agricultural practices. A partial mediation effect was observed on testing the mediating role of farmers' environmental empowerment on the relationship between SME agro-based processing firm environmental standards and farmers' adoption of environmentally friendly practices.Research limitations/implicationsThe study mainly focused on the upstream part of agricultural supply chains. The research has implications to decision-makers in government concerned with enhancing environmentally friendly practices among farmers in general.Originality/valueThe influence of SME agro-based processing firm environmental standards on farmers' adoption of environmentally friendly agricultural practices; the influence of farmers' environmental empowerment on farmers' adoption of environmentally friendly practices; and the mediating role of farmers' environmental empowerment on the relationship between SME agro-based processing firm environmental standards and farmers' adoption of environmentally friendly agricultural practices are aspects that have not been given significant attention.

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