Effect of mandatory sustainability disclosure announcements:cross-country evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhongtian Li ◽  
Jing Jia
Keyword(s):  
Corporate Sustainability ◽  
Economic Consequences ◽  
Content Type ◽  
Corporate Sustainability Performance ◽  
Sustainability Disclosure ◽  
Cross Country ◽  
One Year ◽  
And Control ◽  
Positive Effect ◽  
Anticipation Effects

Purpose This study aims to examine whether announcements of mandatory sustainability disclosure affect corporate sustainability performance (CSP). Design/methodology/approach The authors use a quasi-experiment provided by mandatory sustainability disclosure announcements that occurred in 21 countries from 2006–2016. A difference-in-differences method is adopted. The authors restrict the drawing of all candidate treatment and control firms to a pool of firms that did not disclose sustainability information one year before the announcements. Findings The authors find that the announcements of mandatory sustainability disclosure are positively related to CSP. The positive effect is more pronounced for firms in countries with higher anticipation effects and lower awareness effects. Specifically, the authors find that the effect of the announcements is more pronounced in a country where the rule of law is higher and stakeholders are less likely to initiate communication about sustainability with firms, and with fewer active participants in and signatories to the United Nations Global Compact initiative. The findings hold under different robustness analyses. Originality/value The study enriches the knowledge about the effect of the announcements of comprehensive mandatory sustainability disclosure by analysing the consequences of these announcements. In the contribution to this growing stream of research, the authors provide evidence on the consequences of the announcements based on a cross-country sample and importantly, focusses on the non-economic consequences.

Identification and prioritization of corporate sustainability practices using analytical hierarchy process

2015 ◽  
Vol 10 (1) ◽  
pp. 23-49 ◽  
Author(s):  
Praveen Goyal ◽  
Zillur Rahman ◽  
Absar Ahmad Kazmi
Keyword(s):  
Manufacturing Sector ◽  
Corporate Sustainability ◽  
Pollution Prevention ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Scarce Resources ◽  
Sustainability Performance ◽  
Corporate Sustainability Performance ◽  
Sustainability Practices ◽  
Hierarchy Process

Purpose – The purpose of this paper is to identify and prioritize the corporate sustainability practices to improve the corporate sustainability performance in the manufacturing sector. Further, these practices are being prioritized to find out the essential practices to ensure logical allocation of limited resources. Design/methodology/approach – It examines the corporate sustainability practices which have been shortlisted from both the literature review and experts judgment. Then, analytic hierarchy process has been used to assess the identified 12 practices of corporate sustainability and to find their priorities for improvement of the corporate sustainability performance. Findings – Based on the hierarchical model developed in this study, the analysis reveals market value, environment management and strategy, research and development, pollution prevention, corporate governance and investor responsibility, which have been found to be the most important practices in improving the corporate sustainability performance. Practical implications – The findings of the study would be useful to the practitioners in the proper allocation of scarce resources to optimize the corporate sustainability performance of firms, especially the manufacturing entities. Originality/value – It is a fact that multi-faceted nature of corporate sustainability includes both subjective and objective dimensions. Therefore, prioritization of corporate sustainability at the factor level is one of the important contributions to the literature that has been addressed in the present study. The results of this paper may be generalized to the other sectors.

CEO behavior and sustainability performance: the moderating role of corporate governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amel Kouaib ◽  
Asma Bouzouitina ◽  
Anis Jarboui
Keyword(s):  
Corporate Governance ◽  
Real Estate ◽  
Corporate Sustainability ◽  
Least Square ◽  
Content Type ◽  
Sustainability Performance ◽  
Corporate Sustainability Performance ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Impact

PurposeThis paper explores how the tension between a firm's CEO overconfidence feature and externally observable hubris attribute may determine the level of corporate sustainability performance. This work also contemplates the impact of the moderator “corporate governance practices.”Design/methodology/approachThis study uses a sample of 658 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2006 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied.FindingsFindings suggest that a good corporate governance score strengthens the positive effect of the psychological bias (CEO overconfidence) on corporate sustainability performance while it fails to attenuate the negative effect of the cognitive bias (CEO hubris).Research limitations/implicationsThe research provides an overview of the impact of CEO personality traits on the corporate sustainability performance level in the European real estate sup-sector. As corporate governance can have a major impact to control these traits, the authors recommend European real estate companies to improve their corporate governance practices.Originality/valueThis study contributes to the existent literature this gap with two empirical novelties: (1) providing a novel insight into sustainability involvement using a sample of European real estate sup-sector and (2) investigating the moderating effect on the link between CEO psychological and cognitive biases and sustainability performance. This study provides empirical evidence that entrenchment problems arising from CEO hubris would not be mitigated by a good corporate governance practice.

The scantness of the effect of corporate governance mechanisms on executive directors’ remuneration in small listed companies: evidence from Malaysia

2018 ◽  
Vol 14 (4) ◽  
pp. 934-949
Author(s):  
Husna Siraji Nyambia ◽  
Hamdino Hamdan
Keyword(s):  
Corporate Governance ◽  
Small Firms ◽  
Independent Directors ◽  
Executive Directors ◽  
Content Type ◽  
Power And Control ◽  
Executive Remuneration ◽  
The Family ◽  
One Year ◽  
And Control

Purpose This study extensively aims to investigate the effects of different aspects of corporate governance (CG) mechanism, including board size, executive directors’ shareholdings, Chief Executive Officer (CEO) duality, a family member as the CEO and/or chairperson of the board, independent directors in remuneration committee and number of board meeting, on executive directors’ remuneration in small firms listed on Bursa Malaysia (BM). Design/methodology/approach The sample of this study consists of 173 bottom-listed companies from Bursa Malaysia in Year 2010. The Year 2010 was chosen because the disclosure of remuneration committee activities and directors’ pay structure is required under the revised Malaysia Code of Corporate Governance, 2007. Furthermore, the period selected is after the global economic crisis (2008), which may have an effect on the remuneration structure in small firms. The ordinary least squares regression was used to estimate the relationship between remuneration as dependent variable and other independent variables. Findings A finding from this study reveals that there is a significant positive relationship between executive ownership and executive remuneration, and between board size and executive remuneration. The results provide evidence that the family members manipulate power and control remuneration in small firms. This indicates that the independent directors are not truly independent to monitor and control the firm activities, including minimizing the excessive remuneration. Research limitations/implications This study examines how the corporate governance (CG) affects remuneration among 173 small firms in Malaysia based on market capitalization, for one year, 2010. Hence, the results may not be generalizable to other periods or types of the companies. This shows the possibility of the absence of some additional variables in the research model and hence a limitation to the findings of the study. Although the study is being parsimonious in the choice of relevant variables, prior literature serves the guide in the selection of the used variables. This therefore gives room for future research using the potential omitted variables. Furthermore, the study focuses on total remuneration, such as fees, salaries, bonuses and benefits in kind, which makes aggregate directors’ remuneration. However, this study did not consider the remuneration related to stock options. Finally, this study only uses secondary data; hence, it could be interesting to use other instruments to collect data like a questionnaire to add more weight to the research. This study only uses one-year data; therefore, impact of changes between years cannot be analysed. Originality/value Results of the study provide evidence that the family members manipulate power and control remuneration in small firms. They reduce the effectiveness of non-executive directors because most of them are appointed by a family member and not socially responsible to their stakeholders.

Factors influencing corporate sustainability disclosure practices: empirical evidence from Indian National Stock Exchange

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kishore Kumar ◽  
Ranjita Kumari ◽  
Archana Poonia ◽  
Rakesh Kumar
Keyword(s):  
Empirical Evidence ◽  
Information Disclosure ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Free Cash Flow ◽  
Government Ownership ◽  
Content Type ◽  
Flow Capacity ◽  
Sustainability Disclosure ◽  
The Impact

Purpose This study aims to evaluate the nature and extent of sustainability disclosure practices of publicly listed companies in India. Further, it investigates the impact of potential determinants on the sustainability disclosure of companies. Design/methodology/approach The study analyzes data of 75 top listed nonbanking companies operating in India included in NIFTY100 Index for the years 2014-2015 to 2018-2019. In the present study, environment, social and governance disclosure dimensions were considered to evaluate the sustainability reporting performance of companies using content analysis. Panel data analysis was conducted to investigate the impact of various factors on the extent of sustainability information disclosure. Findings Results indicate that environmentally polluting industries disclose significantly higher sustainability information than non-polluting industries in India. The empirical findings suggest that determinants such as company size, age, free cash flow capacity, government ownership and global reporting initiative (GRI) usage positively related to the extent of corporate sustainability disclosure. Contrary to the expectations, financial leverage and profitability were found to be negatively related to the sustainability disclosure of companies in India. Practical implications This study provides empirical evidence for regulators, practitioners and corporate strategists to assess the progress in the sustainability reporting landscape in India. The finding implies that large and established companies can reduce legitimacy costs through higher sustainability information disclosure. Interestingly, this premise did not hold in the case of high leveraged and profitable companies. Overall findings can also help policymakers to incorporate necessary reforms to improve sustainability reporting in India. Originality/value This study is one of the first studies to investigate the nature, extent and potential determinants of corporate sustainability disclosure in India. The paper adds to the existing literature on sustainability reporting by providing empirical evidence on the relationship between sustainability reporting and potential determinants such as government ownership, size, leverage, profitability, age, free cash flow capacity, industry and GRI usage.

Transboundary air pollution and respiratory disease mortality: evidence from European countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jonathan Spiteri ◽  
Philip von Brockdorff
Keyword(s):  
Air Pollution ◽  
Air Pollutants ◽  
Respiratory Diseases ◽  
Mortality Rates ◽  
Content Type ◽  
Transboundary Air Pollution ◽  
Per Capita ◽  
Cross Country ◽  
And Control ◽  
The Impact

PurposeThe aim of this paper is to quantify the impact of transboundary air pollutants, particularly those related to urban traffic, on health outcomes. The importance of focusing on the health implications of transboundary pollution is due to the fact that these emissions originate from another jurisdiction, thus constituting international negative externalities. Thus, by isolating and quantifying the impact of these transboundary air pollutants on domestic health outcomes, the authors can understand more clearly the extent of these externalities, identify their ramifications for health and emphasise the importance of cross-country cooperation in the fight against air pollution.Design/methodology/approachThe authors employ panel data regression analysis to look at the relationship between emissions of transboundary air pollution and mortality rates from various respiratory diseases among a sample of 40 European countries, over the period 2003–2014. In turn, the authors use annual data on transboundary emissions of sulphur oxides (SOx), nitrogen oxides (NOx) and fine particulate matter (PM2.5), together with detailed data on the per capita incidence of various respiratory diseases, including lung cancer, asthma and chronic obstructive pulmonary disease (COPD). The authors consider a number of different regression equation specifications and control for potential confounders like the quality of healthcare and economic prosperity within each country.FindingsThe results show that transboundary emissions of PM2.5 are positively and significantly related to mortality rates from asthma in our sample of countries. Quantitatively, a 10% increase in PM2.5 transboundary emissions per capita from neighbouring countries is associated with a 1.4% increase in the asthma mortality rate within the recipient country or roughly 200 deaths by asthma per year across our sample.Originality/valueThese findings have important policy implications for cross-country cooperation and regulation in the field of pollution abatement and control, particularly since all the countries under consideration form a part of the UN's Convention on Long-Range Transboundary Air Pollution (CLRTAP), a transnational cooperative agreement aimed at curtailing such pollutants on an international level.

Consequences of corporate sustainability reporting: evidence from an emerging market

2020 ◽  
Vol 62 (3) ◽  
pp. 243-265
Author(s):  
RMNC Swarnapali
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Stock Exchange ◽  
Emerging Market ◽  
Earnings Quality ◽  
Corporate Sustainability ◽  
Market Value ◽  
Sustainability Reporting ◽  
Content Type ◽  
Sustainability Disclosure

Purpose The purpose of this paper is to discover whether corporate sustainability disclosure has a potential impact on the market value and earnings quality of firms in an emerging market. Design/methodology/approach The data were collected from 220 companies listed in the Colombo Stock Exchange (CSE) in Sri Lanka during the period 2012-2016. Firm value proxies by Tobin’s Q, while earnings quality proxies by discretionary accruals (DAC). The study is premised on value-enhancing theory for firm value and transparent financial reporting perspective for earnings quality. Regression analyses are executed on the panel data to achieve the study objectives. Findings The results reveal a positive relationship between sustainability reporting (SR) and firm market value, accepting the value-enhancing theory while rejecting the value-destroying theory. This finding suggests that investors pay a premium in the financial markets for firms that perform in an environmentally and socially responsible manner, compared to firms that do not perform in a similar manner. In the same vein, the results reveal that sustainability disclosure and DAC are negatively and significantly associated, resulting in high-quality earnings. The result is consistent with the transparent financial reporting hypothesis, which is also in line with the managers’ integrity motivation. Originality/value This is the first study investigating the consequences of SR that is specific to the Sri Lankan context. Owing to the sparse studies on consequences of SR, this study contributes significantly to the extant literature by broadening the geographical coverage to include a developing country setting.

Researchers from Portugal have shown how different career strategies influence career development for university graduates

2020 ◽  
Vol 28 (6) ◽  
pp. 41-43
Keyword(s):  
Negative Impact ◽  
Human Resources Management ◽  
Academic Community ◽  
Healthcare Management ◽  
University Graduates ◽  
Content Type ◽  
Business Studies ◽  
Career Strategies ◽  
One Year ◽  
Positive Effect

Purpose The researchers wanted to compare a “traditional career attitude” (TCA), which stresses upward mobility at one company, with a “boundary-less career attitude” (BCA), which focuses on career mobility Design/methodology/approach To test their hypotheses, the authors looked for recent master’s graduates from a large Portuguese university who had been working more than one year. They were students of business studies, human resources management, healthcare management, accounting, marketing and strategy. The graduates received questionnaires to fill in. A total of 131 completed them successfully, with 63% being female respondents. Findings The results showed a TCA had a positive effect on internal employability (IE), but no negative impact on external employability (EE). Meanwhile, the results also confirmed the negative impact on IE of a BCA, whereas there was no significant positive effect on EE. Originality/value The authors felt their study made a number of important contributions both to the academic community, and to increasing the employability of graduates.

Corporate sustainability disclosure’s importance in China: financial analysts’ perception

2019 ◽  
Vol 16 (8) ◽  
pp. 1169-1189
Author(s):  
Jhunru Zhang ◽  
Hadrian Geri Djajadikerta ◽  
Terri Trireksani
Keyword(s):  
Corporate Sustainability ◽  
Financial Analysts ◽  
Health And Safety ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Environmental Aspect ◽  
Content Type ◽  
Sustainability Disclosure ◽  
The Social ◽  
Level Of Importance

Purpose Corporate sustainability in China has become a subject of increasing international concern. Corporate sustainability disclosure (CSD) is considered a useful tool to facilitate the empowerment and acknowledgement of stakeholders in the quest for sustainability. However, the degree of cultural and political influences for being sustainably orientated can be significantly different between countries. This study aims to examine the perception of financial analysts, as CSD report users, in China about the level of importance of various indicators of corporate sustainability described in the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. Design/methodology/approach A set of questionnaires was developed based on GRI G4 guidelines to measure the perception of financial analysts in China on the level of importance of each sustainability indicator described in the GRI G4. A five-point Likert scale was used to measure the report users’ perceptions of each of the indicators. Findings The findings of this study increase our understanding of how Chinese CSD report users perceive corporate sustainability differently from the GRI guidelines. The main results show that the environmental aspect of sustainability was seen to be important in China, followed by the social and economic aspects. Indicator-wise, “water”, “effluents and waste”, “emissions”, “compliance” and “energy” were perceived as vital in the environmental category, while “customer health and safety”, “customer privacy” and “compliance” were considered significant in the social category. Originality/value This study addresses the need for differing corporate sustainability guidelines for different nations and cultures, specifically within the Chinese context. It also contributes to the corporate sustainability literature by adding to our understanding of how financial analysts in China, as CSD report users, perceive aspects of sustainability.

Measuring corporate sustainability: a Thai approach

2014 ◽  
Vol 18 (2) ◽  
pp. 73-88 ◽  
Author(s):  
Sooksan Kantabutra
Keyword(s):  
Structural Model ◽  
Corporate Sustainability ◽  
Chief Executive ◽  
Performance Outcomes ◽  
Economic Crises ◽  
Content Type ◽  
Sustainability Performance ◽  
Public Benefits ◽  
Corporate Sustainability Performance ◽  
Strong Performance

Purpose – This study aims to measure the Thai approach of corporate sustainability. In the corporate world, the Thai philosophy of Sufficiency Economy can be applied to ensure corporate sustainability. Derived from the literature, a structural model expressing relationships between six independent variables of Sufficiency Economy indicators and three dependent variables of sustainability performance outcomes is formed accordingly, followed by hypotheses to be tested. Design/methodology/approach – The model is tested through a random sample of 294 chief executive officers (CEOs) in Thailand who were asked to respond to a questionnaire. Factor and regression analyses are adopted to test the hypotheses. Findings – Findings indicate that “perseverance” and “resilience” are two direct predictors of three sustainability outcomes of the firm’s enhanced capacity to deliver strong performance, endure social and economic crises and deliver public benefits. “Geosocial development” is a direct predictor of firm’s enhanced capacity to deliver public benefits and an indirect predictor of firm’s enhanced capacity to deliver strong performance and to endure social and economic crises. “Moderation” is an indirect predictor of the firm’s capacity to endure social and economic crises, while “sharing” is an indirect predictor of all three sustainability performance outcomes. Practical implications – Small- and medium-sized enterprises business leaders should develop a “perseverance” culture in their organizations and practice “resilience” to enhance their corporate sustainability prospect. Moreover, they should adopt “geosocial development”, “moderation” and “sharing” practices in their organizations, as these practices positively affect corporate sustainability performance directly or indirectly. Originality/value – This study is among the first few studies that identify corporate sustainability performance predictors.

Fun 2 fit aerobics: the misadventures of Amy and Azi and a Malaysian start up!

2011 ◽  
Vol 1 (1) ◽  
pp. 1-8
Author(s):  
Amran Rasli ◽  
Rosman Yusoff ◽  
Huam Hon Tat
Keyword(s):  
Undergraduate Students ◽  
Business Environment ◽  
Subject Area ◽  
Business World ◽  
Content Type ◽  
Planning And Control ◽  
Fitness Industry ◽  
One Year ◽  
And Control ◽  
Starting A Business

Subject area Entrepreneurship. Study level/applicability First year undergraduate students in business and management. Case overview “The Misadventures of Amy and Azi” case presents a brief historical perspective of two partners' venture into the aerobic and fitness industry. The case discusses the partners' foray into the business world armed with great determination and a one year business plan but without proper understanding of the operational requirements of running a business. Though successful in the launching of the first studio, the initial success had blinded the vision of one of the partners, Azi who wanted to open another branch quickly. After a few months of operation, they realized that the second studio was a failure and had sapped the profit from the first centre. To make matter worse, the two partners are stuck with the second studio and have to find another premise for the first studio due to short-sightedness when signing the rental agreement. Expected learning outcomes The case study enables the students to: understand the current business environment of fitness industry in Malaysia, appreciate the need for proper planning and control in starting a business, to be aware of the importance of understanding legal implications in starting a business, the need to conduct proper market research before starting and to understand multi-cultural and multi-religion issues in Malaysia. Supplementary materials Teaching note.

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