AN ASSESSMENT OF THE ROLE OF ENVIRONMENTAL REPORTING IN SUPPORTING SHARE VALUES IN FTSE100 COMPANIES

2003 ◽  
Vol 05 (02) ◽  
pp. 149-182 ◽  
Author(s):  
JAMES DANIEL WALMSLEY ◽  
ALAN BOND
Keyword(s):  
Financial Services ◽  
Stock Exchange ◽  
Temporal Trends ◽  
Share Price ◽  
Environmental Reporting ◽  
Price Performance ◽  
And Performance ◽  
Corporate Environmental Reporting ◽  
The Uk ◽  
Share Value

This paper explores the relationship between corporate environmental reporting and share price performance amongst companies in two industry groups listed on the UK FTSE (Financial Times Stock Exchange) 100 as of the 30th July 2001. The hypothesis tested is that the production of good quality corporate environmental reports (CERs) benefits company share price, by demonstrating to investors an awareness of risk, liability, legislation and opportunities as well as providing a collection of policy, impacts, temporal trends, targets and commitment. Some other studies in this area have concluded that a positive relationship exists between corporate environmental management and performance (including environmental reporting) and share value. The results of this paper differ however, and show that on average, the production of environmental reports by FTSE100 companies (in the energy and utilities and financial services sectors) has not lead to improved historical share price performance when compared to non-reporting companies, although there is strong evidence for reduced volatility of share price. Results for sector performance varied from those obtained from individual company level. The two companies assessed as producing the best reports in their industry sector outperformed both the FTSE100 benchmark, and many of their competitors for the five-year period studied. Whilst there are many benefits to be gained by listed companies through environmental reporting, such as enhancing image and improving public and investor opinion, a positive attitude to the environment, as demonstrated through environmental reporting, can provide an indication of a truly strategic approach to business. Yet there are so many factors involved, it is not possible from the results to conclude that environmental reporting supports share value.

scholarly journals Unobservable characteristics of board directors and the performance of financial services firms in Nigeria

2020 ◽  
Vol 17 (4) ◽  
pp. 378-388
Author(s):  
Henry Osahon Osazevbaru ◽  
Emmanuel Mitaire Tarurhor
Keyword(s):  
Firm Performance ◽  
Financial Services ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Share Price ◽  
Corporate Board ◽  
Return On Assets ◽  
Data Set ◽  
Strategic Performance ◽  
Financial Firms

This paper examines the intricate link between unobservable characteristics of directors on the corporate board and firm performance. It aims to extend the literature on corporate governance and firm strategic performance from the perspective of emerging African economies. A mix of performance measures were used (Tobin Q, return on assets, and share price) and unobservable characteristics were captured as a stochastic element or heterogeneity of observable board characteristics (board activity, gender diversity, size, and independence). The study applied non-linear generalized auto-regressive conditional heteroscedasticity model to examine the data set consisting of 299 firm-year observations from 23 financial firms listed on the Nigerian Stock Exchange from 2006 to 2018. Positive skewness and leptokurtic distribution were found for all the variables. Correlation matrix revealed no multicollinearity, as the highest value was 0.2386. Empirical results suggest that unobservable characteristics significantly and positively influence firm performance as measured by return on assets and share price. This is because the coefficient of the lagged-value of the variance scaling parameter is positive and significant at the 1% level. However, with respect to Tobin Q measure, the result was positive but not significant at the 5% level. Implicitly, the result is sensitive to performance proxies. Accordingly, this study concludes that unobservable characteristics drive firm performance. It is recommended that boards and regulators should pay attention to unobservable characteristics.

THE STANDARDISATION OF ENVIRONMENTAL PERFORMANCE INDICATORS AND THEIR RELATIONSHIP TO CORPORATE ENVIRONMENTAL REPORTING: WHAT CAN WE LEARN FROM THE UK WATER INDUSTRY?

1999 ◽  
Vol 01 (03) ◽  
pp. 277-296 ◽  
Author(s):  
PETER HOPKINSON ◽  
ANTHONY SAMMUT ◽  
MICHAEL WHITAKER
Keyword(s):  
Performance Indicators ◽  
Environmental Performance ◽  
Water Industry ◽  
Environmental Reporting ◽  
Current Time ◽  
Corporate Environmental Reporting ◽  
The Uk ◽  
Corporate Environmental Reports ◽  
Considerable Experience ◽  
Environmental Performance Indicators

The ability to utilise corporate environmental reports to benchmark environmental performance requires the development and inclusion of standardised environmental performance indicators. Most systems for benchmarking corporate environmental reports are measures of environmental activities rather than performance. The UK Water Industry has considerable experience in measuring and reporting standardised environmental performance indicators to the regulator and publishing corporate environmental reports. An analysis of corporate environmental reports shows that the inclusion of industry standardised environmental performance indicators is patchy and inconsistent. Moreover, slight differences in units of measurement make comparisons very difficult. A new set of standardised environmental performance indicators developed by the water industry itself, shows similar findings when compared against corporate environmental reports. At the current time corporate environmental reports cannot be used to benchmark performance. There is no reason why corporate environmental reports could not be adjusted to include the two sets of standardised environmental performance indicators examined. In their absence there seems to be little purpose in benchmarking corporate environmental reports.

scholarly journals Firm Performance and Corporate Social Environmental Initiatives in the Wake of a Health Pandemic

2020 ◽  
Vol 11 (6) ◽  
pp. 211
Author(s):  
Osereme Omoike ◽  
Uwalomwa Uwuigbe ◽  
Philip Alege ◽  
Bukola Uwuigbe ◽  
Osazuwa Peter Nosakhare ◽  
...  
Keyword(s):  
Comparative Analysis ◽  
Stock Exchange ◽  
World Health Organisation ◽  
Share Price ◽  
World Health ◽  
Environmental Reporting ◽  
Significant Drop ◽  
Listed Firms ◽  
Social Environmental ◽  
Corporate Social

The study re-examines the relationship between firm share price performance and Corporate Social Environmental Reporting (CSER) initiatives in the wake of a global health pandemic. A comparative analysis was done between the contributions made by listed and non-listed firms in Nigeria towards the pandemic. A comparative analysis of the share price (SP) of listed companies was carried out before the announcement of the pandemic, after the announcement of the pandemic and COVID -19 contributions. A panel regression analysis was conducted. It involved a sample of 70 listed firms in the Nigerian Stock Exchange over a five-year period (2013-2017). The comparative analysis of contributions revealed that listed firms though fewer in number made significantly more contributions than unlisted firms. The study found significant drop in SP after the announcement of a pandemic by the World Health Organisation (WHO). The study also found that SP performance and firm size has a positive and significant relationship with CSER initiatives. The analysis of contributors from listed and non- listed firms in Nigeria towards COVID-19 reveal that only corporate organizations with adequate resource slack can make significant contributions to curtail the spread of the epidemic. The study recommends that corporate organizations should pursue financial capacity in other to make significant CSER investments and expect a change in societal demands and stakeholder expectations in the no distant future.

scholarly journals Strategy and performance of South African listed family companies

1980 ◽  
Vol 11 (1) ◽  
pp. 5-8
Author(s):  
Rob Mackintosh
Keyword(s):  
Organizational Development ◽  
South African ◽  
Stock Exchange ◽  
Share Price ◽  
Business Policy ◽  
Johannesburg Stock Exchange ◽  
Professional Management ◽  
Small Base ◽  
And Performance ◽  
Business Family

An impressive body of theory on organizational development, performance, strategy and structure has developed over the last two decades. Much of what we know stems from direct observation (usually in the form of case-studies), first-hand experience, and common sense. Yet surprisingly little attempt has been made to test the theories and provide an empirical base with which to confirm or reject the theories. This study suggests that the traditional theories of organizational development are vindicated - that firms develop from entrepreneurial, family companies in the first stage to professional management in later stages. Furthermore, an analysis of share-price movements suggests that single business family companies on the Johannesburg Stock Exchange do not perform as well as those which adopt more diversified strategies. This study builds on the small base of previous research, and hopefully makes a contribution to our knowledge both in the academic/teaching sphere of business policy, and in the area of organizational change.'n Indrukwekkende versameling van teorie oor organisasieontwikkeling, en die prestasie, strategie en struktuur van ondernemings is oor die afgelope twee dekades ontwikkel. Ons kennis het ontstaan uit direkte waarneming (gewoonlik in die vorm van gevallestudies), eie ervaring, en gesonde verstand. Tog is min pogings aangewend om die teoriee te toets en 'n empiriese basis te skep waarvolgens die teoriee bevestig of verwerp kan word. Hierdie studie stel voor dat die tradisionele teoriee van organisasie-ontwikkeling geregverdig is - dat firmas van entrepreneuriele familie-ondernemings in die eerste stadium, tot professionele bestuur in latere stadia ontwikkel. Verder dui 'n ontleding van aandeleprys-bewegings aan dat enkelbedryf familiemaatskappye op die Johannesburgse Aandelebeurs nie so goed vertoon as die wat meer gediversifiseerde strategiee aanvaar het nie. Hierdie studie bou voort op die klein basis van vorige navorsing, en maak hopelik 'n bydrae tot kennis sowel in die akademiese/onderrigsfeer van bestuursbeleid, as op die gebied van organisasieverandering.

Measuring performance in corporate environmental reporting in Nigeria

2020 ◽  
Vol 24 (2) ◽  
pp. 183-195
Author(s):  
Oluwamayowa Olalekan Iredele
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Environmental Information ◽  
Annual Reports ◽  
Current Status ◽  
Multiple Sources ◽  
Environmental Reporting ◽  
Content Type ◽  
Sustainability Reports ◽  
Corporate Environmental Reporting

Purpose The purpose of this study is to measure the current level of corporate environmental reporting (CER) in the developing economy of Nigeria. This is with a view to drive the effort of firms towards improving on the present practice. An attempt is made to also determine the extent to which the level of CER differs on account of firm characteristics. Design/methodology/approach The study used data for the top 40 companies on the Nigerian stock exchange as of 31 December 2017 based on market capitalization. The annual reports, company website and sustainability reports were the major sources of data. The paper used descriptive statistics and one-way analysis of variance to analyse data. Findings Despite the attempt to explore multiple sources in obtaining environmental information, empirical evidence from the present study confirms that the level of environmental reporting is low; most companies report environmental issues through the website. It further found an association between CER and firm size. Practical implications The findings will be of interest to policymakers and regulators on the need to regulate environmental reporting. Thus, motivating firms towards better environmental performance in Nigeria. Originality/value The paper extends environmental reporting research in Nigeria beyond the use of annual reports. It captured environmental information reported through the website and sustainability reports. It provides information on the current status in terms of quality and content of information reported. Finally, it found that firm size is a contingent factor for CER in Nigeria.

scholarly journals Diffusing Environmental Regulation through the Financial Services Sector: Reforms in the EU and other Jurisdictions

2003 ◽  
Vol 10 (3) ◽  
pp. 233-264 ◽  
Author(s):  
Benjamin J. Richardson
Keyword(s):  
Environmental Regulation ◽  
Financial Services ◽  
Environmental Governance ◽  
Ad Hoc ◽  
Environmental Reporting ◽  
Services Sector ◽  
Financial Services Sector ◽  
Lender Liability ◽  
Corporate Environmental Reporting ◽  
The Eu

The financial services sector has the potential to be an important facet of future systems of environmental governance. But, so far, only ad hoc policy initiatives have arisen in the EU and other countries addressing the environmental roles of banks or insurers. Because the financial services sector is where wholesale decisions regarding future development, and thus pressures on the environment, arise, reform of investment, banking and insurance services to promote long term investment and better consideration of environmental impacts may be an effective way to promote sustainable development. Reforms such as corporate environmental reporting requirements, mandatory environmental liability insurance, and lender liability for borrowers' environmental harms, are some of the ways in which an institutional framework for mobilizing financial organizations as instruments of environmental regulation could be constructed.

Part II Financial Services Regulation, 11 Listing and Public Offers

2018 ◽  
Author(s):  
Walker George ◽  
Purves Robert ◽  
Blair Michael
Keyword(s):  
European Union ◽  
Financial Services ◽  
Information Disclosure ◽  
Stock Exchange ◽  
The European Union ◽  
London Stock Exchange ◽  
Financial Services Regulation ◽  
The Uk ◽  
Public Offer ◽  
The Eu

This chapter examines the regulatory framework for listing and public offers in the UK, with a particular focus on the Prospectus Directive regime that was first adopted by the European Union in November 2003 and implemented in the UK from 1 July 2005. The Prospectus Directive regime regulates information disclosure in connection with a public offer or admission to listing on a regulated market in the EU. The chapter first provides an overview of the evolution of the Prospectus Directive regime before discussing its implementation in the UK. It then considers when a prospectus is required and what it must contain and describes the listing regime in the UK, which combines admission to the ‘Official List’ with admission to trading on one of the markets of the London Stock Exchange. The chapter also explains the UK listing requirements and the ongoing obligations faced by issuers admitted to listing and trading.

scholarly journals Learning Financial Time Series for Prediction of the Stock Exchange Market

10.29007/mh4m ◽  
2019 ◽  
Author(s):  
Roberto Rosas-Romero ◽  
Juan-Pablo Medina-Ochoa
Keyword(s):  
Time Series ◽  
Financial Services ◽  
Stock Exchange ◽  
Financial Time Series ◽  
Formal System ◽  
Activation Function ◽  
Exchange Market ◽  
Financial Time ◽  
Potential Benefits ◽  
And Performance

This paper presents the extension and application of three predictive models to time series within the financial sector, specifically data from 75 companies on the Mexican stock exchange market. A tool, which generates awareness of the potential benefits obtained from using formal financial services, would encourage more participation in a formal system. The three statistical models used for prediction of financial time series are a regression model, multi-layer perceptron with linear activation function at the output, and a Hidden Markov Model. Experiments were conducted by finding the optimal set of parameters for each predicting model while applying a model to 75 companies. Theory, issues, challenges and results related to the application of artificial predicting systems to financial time series, and performance of the methods are presented.

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