Interplay between environmental, social and governance coordinates and the financial performance of agricultural companies

On the complex framing of the agricultural fields, related to the corporate social responsibility (CSR), the general objective of this paper is to assess the impacts of environmental, social and governance (ESG) credentials of CSR and human capital features on the financial performance of agricultural companies. The data consists of a sample of 412 public companies from the Thomson Reuters Eikon database, with data for 2020, operating in 17 agricultural areas with headquarters allocated around the world. The methodological endeavor embeds two econometric procedures, multifactorial models of robust regression and structural equation modelling (SEM). The research results bring new evidence to underline the risks related to the sustainability of the financial performance of agricultural companies and the decisive role played by the ESG dimensions to counteract these risks, particularly by the environmental pillar, along with CSR specific strategies and human capital characteristics (management board and employees). We propose several strategies for companies operating in agricultural fields in order to enhance profitability by CSR measures.

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The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

Journal of Risk and Financial Management ◽

10.3390/jrfm14020079 ◽

2021 ◽

Vol 14 (2) ◽

pp. 79

Author(s):

Gratiela Georgiana Noja ◽

Eleftherios Thalassinos ◽

Mirela Cristea ◽

Irina Maria Grecu

Keyword(s):

Risk Management ◽

Financial Performance ◽

Financial Services ◽

Structural Equation ◽

Supervisory Board ◽

Fiscal Year ◽

Services Sector ◽

Board Characteristics ◽

Financial Services Sector ◽

Thomson Reuters

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies.

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CSR and Corporate Financial Performance: An Inter-Sectorial Analysis

International Journal of Business and Management ◽

10.5539/ijbm.v14n11p193 ◽

2019 ◽

Vol 14 (11) ◽

pp. 193 ◽

Cited By ~ 1

Author(s):

Antonio Salvi ◽

Emanuele Doronzo ◽

Anastasia Giakoumelou ◽

Felice Petruzzella

Keyword(s):

Financial Performance ◽

Method Of Moments ◽

Environmental Governance ◽

Generalized Method Of Moments ◽

Geographic Area ◽

Corporate Financial Performance ◽

Thomson Reuters ◽

Sectorial Analysis ◽

Corporate Social ◽

The Relationship

This study examines the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP), shedding new light on the lack of academic consensus and prevailing failure to deal with endogeneity in data. To this purpose, the authors recalculate ESG performance starting from the four pillars (economic, environmental, governance and social) provided by Thomson Reuters’ Asset4 database, able to determine a firm’s CSP. We adjust each ESG pillar score accounting for the firm’s sector, size and headquarter geographic area. We empirically test the relationship with a Generalized Method of Moments approach (GMM) in order to tackle the widely disputed endogeneity issues arising in this type of datasets. Results highlight a positive relationship between CSR, as measured in a tailored manner in this study, and corporate financial performance.

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Materiality Conditions in the Interplay between Environment and Financial Performance: A Graphical Modeling Approach for EEA Oil and Gas Companies

Complexity ◽

10.1155/2021/7380759 ◽

2021 ◽

Vol 2021 ◽

pp. 1-16

Author(s):

Mirela Sichigea ◽

Marian Siminica ◽

Mirela Cristea ◽

Gratiela Georgiana Noja ◽

Daniel Circiumaru

Keyword(s):

Financial Performance ◽

Graphical Models ◽

Structural Equation ◽

Oil And Gas ◽

Strong Dependence ◽

Sustainable Growth ◽

Equation Modeling ◽

Main Concept ◽

Thomson Reuters ◽

Oil And Gas Companies

The recovery after the unprecedented pandemic crisis that Europe has currently been facing is strengthening the strong dependence between social, economic, and environmental fields, maintaining green investments and innovation at the core of the European strategies. Shifting to clean industries is a challenging mission that a complex network of stakeholders and their different interests must take into account. Within this network, the interplay between environmental and financial performance of a company represents a common point with a growing emphasis on the transparency and the materiality capacity of the disclosed information. This paper uses the Structural Equation Modeling and the Gaussian Graphical Models as graphical analysis approaches and offers a first insight about the interaction between environmental materiality measures and financial performance. A preliminary step of the scientific research consisted of a hand-mapping investigation about materiality conditions. Starting from the Materiality Map developed by the Sustainability Accounting Standards Board (SASB), this paper extends the main concept about materiality and investigates it on three different content ranges, which focus on the general environmental policy of the company, the targets set, and its concrete footprint. The methodology approaches were grounded on a newly compiled dataset provided by the Thomson Reuters database for 194 Economic European Area (EEA) oil and gas companies. The results provide significant evidences for the manifestation of materiality and emphasize the informational content of the individual environmental measures as an important condition for its financial impact. Adding to the environmental-financial performance relationship, our findings have both practical and academic relevance for the economic field and sustainable growth goals.

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PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN PERUSAHAAN (Studi Empiris Perusahaan Sektor Pertambangan dan Pertanian yang Terdaftar Di Bursa Efek Tahun 2012-2014)

JEA17: Jurnal Ekonomi Akuntansi ◽

10.30996/jea17.v2i02.3169 ◽

2017 ◽

Vol 2 (02) ◽

Author(s):

Rachmat Harisianto ◽

Dewi Sutjahyani

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Economic Performance ◽

Structural Equation ◽

Stock Exchange ◽

Negative Relationship ◽

Partial Least Square ◽

Least Square ◽

Corporate Social

ABSTRACTThis research was conducted to analyze the effect of Corporate Social Responsibility performance indicators Economic, Environmental, and Social on financial performance. This study was made to determine how the implementation of Corporate Social Responsibility Financial Performance. The method used in this research is quantitative method and the population is a company mining and agricultural sectors listed in Indonesia Stock Exchange in 2012-2014, using data analysis SEM (Structural Equation Modelling) by the application program PLS (Partial Least Square) version 3.2. 1. Results obtained indicate that Corporate Social Responsibility (CSR) of the three indicators Economic Performance (KE), Environmental Performance (KL), Social Performance (KS) to the company's financial performance and Agriculture Mining sector not significant coefficient -0317 parameter Corporate social yangberarti responsibility (CSR) to the financial performance had a negative relationship which means no direction opposite relationship. Keywords: Influence of Corporate Social Responsibility of the three indicators Economic Performance, Environmental, and Social the Financial Performance.

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Human Capital Efficiency and Financial Performance: Empirical Evidence of Malaysian Public Companies.

The Journal of Social Sciences Research ◽

10.32861/jssr.spi5.878.884 ◽

2018 ◽

pp. 878-884

Author(s):

Azlina Rahim ◽

Amrizah Kamaluddin ◽

Ruhaya Atan

Keyword(s):

Human Capital ◽

Financial Performance ◽

Value Added ◽

Annual Reports ◽

Public Companies ◽

Accounting Data ◽

Return On Equity ◽

Capital Efficiency ◽

Financial Performance Measures ◽

The Relationship

The purpose of this study is to investigate empirically the relationship between human capital efficiency and financial performance of Malaysian public companies. Using accounting data, this study reviewed the annual reports of Malaysian companies for a period of thirteen years from 2000 to 2012. The study applied Value Added Intellectual Coefficient (VAICTM) methodology developed by Ante Pulic to determine the human capital efficiency of a company. The regression models was construct to examine the relationship between human capital efficiency and financial performance measures including return on assets (ROA) and return on equity (ROE).The results revealed that human capital efficiency has significant and positive relationships with financial performance. The human capital efficiency is seen as a value driver for a company’s competitiveness. Hence, the findings of this study should help companies’ managers to make better decision pertaining to investment of their strategic asset that is human capital.

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The Importance of Corporate Social Responsibility in Improving Corporate Value

International Journal of Finance & Banking Studies (2147-4486) ◽

10.20525/ijfbs.v9i3.868 ◽

2020 ◽

Vol 9 (3) ◽

pp. 121-130

Author(s):

Supriyati - ◽

Gunasti Hudiwinarsih

Keyword(s):

Social Responsibility ◽

Robust Regression ◽

Stock Exchange ◽

Corporate Image ◽

Decision Makers ◽

Corporate Value ◽

Public Companies ◽

Financial Activity ◽

Corporate Social ◽

A Company

Corporate value is a quality measure that indicates the consistency and sustainability of a company. Good corporate value can only be attained if the company has consistent financial performance, and that value will be used by decision makers inside or outside the company as the guide before making action. Attaining good corporate value should need comprehensive strategies integrated with company operation. Among those strategies is non-financial activity or social responsibility. This research expects that the disclosure of social responsibility by the company will adorn corporate image and give good impact on profitability and corporate value. This research is aimed to examine the effect of social responsibility disclosure on profitability and corporate value. Data testing was conducted using robust regression test and applied on 1306 data of public companies that are listed at Indonesia Stock Exchange on period 2015-2018. Result of the test shows that social responsibility affects profitability and corporate value.

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Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

Journal of Risk and Financial Management ◽

10.3390/jrfm14080354 ◽

2021 ◽

Vol 14 (8) ◽

pp. 354

Author(s):

Matteo Rossi ◽

Jamel Chouaibi ◽

Salim Chouaibi ◽

Wafa Jilani ◽

Yamina Chouaibi

Keyword(s):

Financial Performance ◽

Potential Effect ◽

Moderating Effect ◽

Governance Mechanisms ◽

Board Characteristics ◽

Thomson Reuters ◽

Corporate Social ◽

The Relationship ◽

Source Of Information

This study aims to examine the potential effect that corporate social responsibility practices (CSR) have on financial performance in ESG firms, using the moderating role of board characteristics. To test the moderating effect of the board characteristics in the relationship between CSR practices and financial performance, we applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries in analyzing data of 225 listed companies between 2015 and 2019. The results show that board characteristics partially moderate the relationship between CSR practices and financial performance in European ESG firms. In addition, this study indicates that CSR practices affect the firm’s financial performance positively. The study findings appended a new dimension to governance research that could provide policymakers and regulators with a valuable source of information to strengthen governance mechanisms for better financial performance. Previous studies mostly investigate the direct effect of corporate governance on financial performance. A few studies examine the moderating effect of CSR practice. This paper contributes by investigating the moderating effect of governance mechanisms in the ESG context.

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Corporate Social Responsibility and Intellectual Capital: Sources of Competitiveness and Legitimacy in Organizations´ Management Practices

Sustainability ◽

10.3390/su11205843 ◽

2019 ◽

Vol 11 (20) ◽

pp. 5843 ◽

Cited By ~ 4

Author(s):

Gallardo-Vázquez ◽

Valdez-Juárez ◽

Lizcano-Álvarez

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Intellectual Capital ◽

Structural Equation ◽

Management Practices ◽

Equation Model ◽

Public Companies ◽

Tangible Assets ◽

Private And Public ◽

Corporate Social

Two important managerial strategies have shaped organizations’ initiatives in recent years: corporate social responsibility (CSR) and intellectual capital (IC). Organizations’ implementation of voluntary CSR practices implies a commitment that goes beyond mere actions and it constitutes a step toward securing benefits for these entities. In contrast, IC refers to a set of intangible organizational assets (i.e., human, structural, and relational capital) that are capable of providing greater value than tangible assets do. Putting both strategies into practice independently of each other is a source of competitive advantages for organizations, including more legitimacy in their sector. However, the present study sought to explore the possibility of strengthening the link between CSR and IC by integrating socially responsible practices into the configuration of each IC dimension. Thus, this research’s objective was to determine whether CSR initiatives can generate improvements in key IC components in organizations. The study included extremely diverse Spanish organizations ranging from small and medium-sized enterprises to large firms, private and public companies, and organizations serving multiple purposes, such as universities—all of which were implementing CSR initiatives. The partial least squares technique was applied to estimate a structural equation model to achieve the objective. The findings include that CSR improves organizations’ IC and that the resulting competitiveness is a source of legitimacy.

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The association between organisational culture, CSR practices and organisational performance in an emerging economy

Meditari Accountancy Research ◽

10.1108/medar-09-2019-0574 ◽

2020 ◽

Vol 28 (6) ◽

pp. 977-1011

Author(s):

Faruk Bhuiyan ◽

Kevin Baird ◽

Rahat Munir

Keyword(s):

Financial Performance ◽

Structural Equation ◽

Emerging Economy ◽

Organisational Culture ◽

Organisational Performance ◽

Content Type ◽

Different Dimensions ◽

Corporate Social ◽

The Impact ◽

Team Orientation

Purpose This study aims to investigate the influence of organisational culture, specifically O’Reilly et al.’s (1991) six dimensions of the organisational culture profile (respect for people, outcome orientation, team orientation, innovation, attention to detail and stability) on corporate social responsibility (CSR) practices and the subsequent impact of CSR practices on organisational performance from the context of an emerging economy. Design/methodology/approach The study used a survey of middle- and higher-level managers in Bangladeshi organisations to develop a seven-dimensional model of CSR practices and used structural equation modelling to analyse the developed hypotheses. Findings The findings provide evidence of the influence of the six different dimensions of organisational culture on the different dimensions of CSR practices. The findings highlight the diverse impacts (i.e. positive and negative) of CSR practices on organisational performance. The study also highlights the direct influence of organisational culture on both financial and non-financial performance. In particular, the outcome and team orientation culture are positively associated with non-financial and financial performance, respectively, while an innovative culture is negatively associated with both non-financial and financial performance. Practical implications The findings of the study provide practitioners, internal (i.e. the managers and business owners of both the local and multinational organisations) and external policy-makers, and foreign investors in an emerging economy with new insights into the role of an intra-organisational factor (i.e. organisational culture) in influencing the adoption of CSR practices and the subsequent impact of CSR practices on organisational performance. Originality/value Using the 52 guidelines of CSR practices provided by the Organisation for Economic Co-operation and Development, this study provides a unique empirical insight into the influence of organisational culture on CSR practices and the impact of CSR practices on organisational performance. The findings contribute to the limited CSR literature examining the influence of organisational culture on the adoption of CSR practices and its subsequent impact on organisational performance in an emerging economy.

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Management Financial Incentives and Firm Performance in a Sustainable Development Framework: Empirical Evidence from European Companies

Sustainability ◽

10.3390/su12187247 ◽

2020 ◽

Vol 12 (18) ◽

pp. 7247 ◽

Cited By ~ 1

Author(s):

Gratiela Georgiana Noja ◽

Mirela Cristea ◽

Cecilia Nicoleta Jurcut ◽

Alexandru Buglea ◽

Ion Lala Popa

Keyword(s):

Sustainable Development ◽

Firm Performance ◽

Financial Performance ◽

Financial Incentives ◽

Structural Equation ◽

Latent Class ◽

Spillover Effects ◽

Positive Effects ◽

Development Framework ◽

Thomson Reuters

Management financial incentives are an effective way to attract, retain and stimulate managers with beneficial spillover effects on firm performance. This paper explores the relationship between board and executive management compensation and remunerations and the financial performance of European companies from various industries in a sustainable development framework. The sample covers 1594 firms with data extracted from Thomson Reuters Eikon (Refinitiv, New York, NY, USA) databases from 2019 and a selection of specific indicators. The complex methodological endeavor encompassed by our research embeds several robust and two-stage least squares (2SLS/IV) regression models, structural equation modelling, including latent class analysis and network analysis through Gaussian Graphical Models. Main results bring to the fore that management financial incentives/packages reverberate positively and significantly on the performance of European firms, leading to important upwards in enterprise value and company earnings. Moreover, the sustainability indicators (committee, policy, energy use, renewable energies) also have positive effects on the financial performance of analyzed companies, being discussed extensively within the paper.

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