Eco-Effective Management: An Empirical Link between Firm Value and Corporate Sustainability

2011 ◽  
Vol 11 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Royce D. Burnett ◽  
Christopher J. Skousen ◽  
Charlotte J. Wright
Keyword(s):  
Firm Value ◽  
Management Practices ◽  
Corporate Sustainability ◽  
Data Availability ◽  
Policy Implications ◽  
Effective Management ◽  
Current Accounting ◽  
Long Run ◽  
Environmental Goals

ABSTRACT Achieving corporate sustainability requires the implementation of management practices that create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social developments. Corporations that are sustainable create value that, in the long run, exceeds their environmental impact (Figge and Hahn 2004). We examine the extent to which investors incrementally value the long-run benefits accruing from adoption of eco-effective management. We posit that adoption of eco-effective management results in increases in firms' market valuation, and that those increases persist beyond the current accounting period. Our results support this hypothesis. This study has broad public policy implications as accountants, managers, and government policymakers shift their focus toward sustainability and rely on market-based mechanisms to further environmental goals. Data Availability: All data are available from public sources.

scholarly journals Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402097302
Author(s):  
Muhammad Athar Nadeem ◽  
Zhiying Liu ◽  
Haji Suleman Ali ◽  
Amna Younis ◽  
Muhammad Bilal ◽  
...  
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Political Stability ◽  
Policy Implications ◽  
Innovation Activities ◽  
Adverse Impacts ◽  
Long Run ◽  
Market Shares ◽  
Auto Regressive

Sound innovation capabilities help the nations not only to capture bigger market shares but also to sustain long-term economic growth. Innovation is of vital importance at all stages of a country’s development as it promotes productivity, value creation, employment, economic growth, and sustainability. Several factors can affect the innovation activities of a country. For example, peaceful and stable environment, effective macroeconomic designs, sound institutional quality, and efficient utilization of resources are of great significance for a country to nourish economic, business, and market activities. Applying the Auto Regressive Distributive Lag approach to cointegration, this study investigates the short- and long-run impacts of aid, political instability, and terrorism upon the innovation of a laggard economy, namely, Pakistan. Our findings reveal that aid, political instability, and terrorism all have adverse impacts on innovation. Results across robustness checks remain the same. This study is of strong policy implications for policymakers, governments and opposition parties, and security and intelligence agencies to develop sound macroeconomic designs and policies, bring harmony for political stability, and curb terrorism, respectively.

Appreciative Sharing of Knowledge

2021 ◽  
Author(s):  
Raphaela Stadler
Keyword(s):  
Knowledge Management ◽  
Appreciative Inquiry ◽  
Management Practices ◽  
Shared Understanding ◽  
Knowledge Practices ◽  
Long Run ◽  
Alternative Approaches ◽  
Knowledge Management Practices ◽  
Positive Memories

The previous chapters in this book have so far mainly focused on problem-solving approaches to knowledge management within event organisations. It has been argued that there are a lot of knowledge management challenges in event organisations, which need to be overcome in order for the organisation to be successful in the long run. This chapter presents an entirely different approach to knowledge management: it introduces Appreciative Inquiry as an approach to management based on an organisation’s strengths with regards to knowledge management, such as, for example, knowledge creation and knowledge sharing practices that are already working well. Applying the principles of Appreciative Inquiry and Appreciative Sharing of Knowledge, as defined by Cooperrider and Srivastva (1987), Cooperrider and Whitney (1999) and Thatchenkery and Chowdhry (2007), the aim is to utilise the strengths within the organisation, and learn from and further build on these strengths, in order to enhance the organisation’s knowledge management practices and ultimately its success overall. The first two sections of this chapter introduce Appreciative Inquiry and Appreciative Sharing of Knowledge as alternative approaches to knowledge management. They highlight key principles of these and provide examples as to how they can be applied to event organisations. The final section of the chapter more specifically discusses (positive) stories and storytelling within the Appreciative Sharing of Knowledge approach and focuses on how stories of success, achievement, and positive memories can be a useful tool within event organisations to create a shared understanding and knowledge of what the event is about, what it aims to achieve, and how to work together effectively and efficiently. It will be reemphasised that these tacit knowledge practices are invaluable within any organisation, and can provide a competitive advantage in the long term.

Tourism, economic growth, energy consumption, and CO2 emissions in China

2020 ◽  
pp. 135481662091845 ◽  
Author(s):  
Jiekuan Zhang ◽  
Yan Zhang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Policy Implications ◽  
Long Run ◽  
Cointegration Tests ◽  
Short Run ◽  
Vecm Granger Causality ◽  
Growth Energy

In this article, we for the first time applied the vector error correction model (VECM) Granger causality approach to investigate the short-run and long-run causal relationships among tourism, economic growth, energy consumption, and carbon dioxide (CO2) emissions for 30 Chinese provinces over the period 2000–2017. The results implied that the analyzed variables became stationary at their first differences. The panel cointegration tests indicated the presence of a long-term equilibrium relationship among these four analyzed variables. Results from the VECM Granger causality tests suggested that the bidirectional short-term causalities were statistically confirmed between gross domestic product (GDP) and tourism. Additionally, we found that some unidirectional short-run causalities existed running from energy consumption to other analyzed variables and bidirectional long-run causalities existed between CO2 emissions and GDP, CO2 emissions and tourism, and GDP and tourism. Moreover, we also found the existence of unidirectional long-term causalities running from energy consumption to other analyzed variables. Based on these findings, we highlighted some key policy implications to develop China’s sustainable tourism.

scholarly journals Dynamic modelling of the relationship between financial leverage and firm value of selected firms quoted on the Nigerian Stock Exchange

2021 ◽  
Vol 10 (3) ◽  
pp. 259-275
Author(s):  
Umar Abbas Ibrahim ◽  
AbdulQudus Isiaka
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Dynamic Modelling ◽  
Indigenous Studies ◽  
Financial Leverage ◽  
Long Run ◽  
Equity Ratio ◽  
Auto Regressive

This study examined the long-run effect of financial leverage on firm value with evidence from a sample of 62 firms quoted on the Nigerian Stock Exchange, over the five-year period between 2014-2018. The level of financial leverage as measured by the Debt-Equity ratio while firm value was represented by Tobin’s Q Market-Book Value Ratio. The study contributes to the literature by appraising the dynamic dimensions of the causal relationship between firm value and financial leverage, an investigation that has remained elusive in indigenous studies. The study determined the degree of long-term causality by employing an auto-regressive model estimated by the Generalized Method of Moments (GMM) technique. The regression results show that financial leverage has a significant positive effect on the firm value both in the short and long run, while the result of the correlation analysis carried out reveals that there is a significantly positive and strong linear relationship between the time series of firm value and its lagged version implying that firm value does not demonstrate traits of Mean reversion. The Management of these companies was advised to optimize firm value by undertaking quality projects and relying more on debts for funding.

scholarly journals Long-Run Relationship Between Economic Development and International Tourism in Pakistan

2020 ◽  
Vol 6 (2) ◽  
pp. 329-344
Author(s):  
Muhammad Asif Khan ◽  
Ghulam Mujtaba Chaudhary ◽  
Khalid Latif ◽  
Naveed Ahmed
Keyword(s):  
Economic Development ◽  
Policy Implications ◽  
International Tourism ◽  
Annual Data ◽  
Short Term ◽  
Stock Market Development ◽  
Development Indicators ◽  
Distributed Lag ◽  
Long Run

This article examines the link between economic development and international tourism in the context of Pakistan. The study uses Autoregressive Distributed Lag tests (ARDL) for the long-term relationship; the short-term relationship is examined with Error Correction model, and the VECM-Granger causality to determine the direction of the causal flow. The study uses annual data from the CEIC and World Bank databases for the period 1990-2017. The novelty stems from the perspective that there is no formal evidence on long-run dynamics between economic development indicators and international tourism from Pakistan. It contributes to the existing literature on this vital phenomenon. The empirical results document the long-term and short-term association between the variables. We also find a two-way causal flow between economic development and tourism. In addition, it offers policy implications for focusing on three economic dimensions, e.g. economic development, financial development, and stock market development, which subsequently attracts international tourism. Intuitively, promulgates National culture and image across borders and strengthens the National Treasury as well.

scholarly journals Do coffee exports have impact on long-term economic growth of countries?

2019 ◽  
Vol 65 (No. 8) ◽  
pp. 385-393
Author(s):  
Theodore Murindahabi ◽  
Qiang Li ◽  
Eric Nisingizwe ◽  
E.M.B.P. Ekanayake
Keyword(s):  
Economic Growth ◽  
Open Economy ◽  
Policy Implications ◽  
Pooled Mean Group ◽  
Long Run ◽  
Auto Regressive ◽  
Coffee Sector ◽  
The Impact ◽  
Positive Effect

The present paper aims to investigate the impact of coffee exports on long-term economic growth in an open economy for 32 countries exporting coffee over the period of 1994–2013. The study applied a dynamic panel Auto-Regressive Distributive Lag (ARDL) modelling approach with estimators. All variables involved in the specified model were found to be stationary of order I (1) at a first difference. The Pooled Mean-Group (PMG) long-run results suggest the presence of a significant positive effect of coffee exports on economic growth. The empirical findings of the study suggest policy implications, promoting the coffee sector to boost the countries’ economy.

Investor Horizon and CEO Horizon Incentives

2014 ◽  
Vol 89 (4) ◽  
pp. 1299-1328 ◽  
Author(s):  
Brian Cadman ◽  
Jayanthi Sunder
Keyword(s):  
Stock Returns ◽  
Initial Public Offering ◽  
Firm Value ◽  
Chief Executive ◽  
Data Availability ◽  
Investment Horizon ◽  
Management Actions ◽  
Long Run ◽  
Short Horizon ◽  
Public Offering

ABSTRACT: We examine the relation between shareholder investment horizon and chief executive officer (CEO) horizon incentives derived from compensation contracts. We find that influential incumbent shareholders provide managers with short-horizon incentives to maximize current firm value when these shareholders plan to sell their stock. Specifically, we use the initial public offering (IPO) setting in which venture capitalists (VCs) represent short-horizon, controlling investors with strong selling incentives after the IPO. We predict and find that VCs' short-term incentives influence CEO's annual horizon incentives following the IPO. At the same time, institutional monitoring limits the influence of VCs on annual, short-horizon incentives. To preempt this disciplining by market participants, VCs grant equity prior to the IPO that correspond with their short-horizons and result in shorter portfolio horizon incentives for the CEO after the IPO. We also document a positive relation between long-run abnormal stock returns and horizon incentives, consistent with horizon incentives influencing management actions. Data Availability: All data are publicly available from the sources indicated in the paper.

scholarly journals Knowledge, Input-Output Complexity and the Notion of Sustainability

2019 ◽  
Vol 10 (4) ◽  
pp. 1-10
Author(s):  
Urban Sušnik ◽  
Andrej Sušjan ◽  
Nevenka Hrovatin
Keyword(s):  
Income Distribution ◽  
Structural Changes ◽  
Social Issues ◽  
Division Of Labour ◽  
Policy Implications ◽  
Input Output ◽  
Knowledge Based ◽  
Long Run ◽  
The One

Abstract The paper attempts to synthesize the analytical nucleus of classical political economy and modern ecological economics. In essence this means making a connection between social issues of income distribution, accumulation of capital and economic growth with biophysical limits to economic development. We first model a simple growing system of production and explore its potential to maintain sustainability when using a single natural resource. Taking into consideration the laws of thermodynamics we show that the long-term sustainability of such a simple system is unlikely. When the model is extended to incorporate a wider range of inputs used and commodities produced, such complexity accompanied by knowledge-based structural changes provides necessary conditions for the long-run sustainability of a growing economic system. Since input-output complexity results from the division of labour on the one hand and from intentional R&D policies on the other, this conclusion also brings forward some policy implications regarding income distribution in the society.

scholarly journals Impact of Corporate Sustainability on Firm Value: Indonesian Context

2020 ◽  
Vol 3 (1) ◽  
pp. 102
Author(s):  
Muhammad Yusuf Shalihin ◽  
Harry Suharman ◽  
Dede Abdul Hasyir
Keyword(s):  
Firm Value ◽  
Corporate Strategy ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Method Of Moment ◽  
Estimation Model ◽  
Business World ◽  
Company Value

Sustainability reports emerge as a critical problem in the business world. Companies do not merely pursue profit maximization, but must pay attention to non-financial factors to maintain long-term growth. This study aims to investigate the relationship between company sustainability and company value. This study involved a sample of companies included in the proper index listed on the capital market and included in the category of 45 of the most actively traded companies (LQ45) on the Indonesia Stock Exchange with a study period of 2015-2018. Sample selection by purposive sampling method with the final results obtained 20 sample companies that meet the sample criteria. Then the data is tested with the Generalized Method of Moment (GMM) estimation model analysis method. The results of this study indicate that corporate sustainability has a positive effect on the value of market-based companies. This research implies that companies and the Indonesian government must pay attention to increasing sustainability reporting. Because it is proven to be used as a corporate strategy in improving long term performance and maximizing company value.

scholarly journals Extreme Climate Shocks and Green Agricultural Development: Evidence from the 2008 Snow Disaster in China

2021 ◽  
Vol 18 (22) ◽  
pp. 12055
Author(s):  
Litao Feng ◽  
Zhuo Li ◽  
Zhihui Zhao
Keyword(s):  
Agricultural Development ◽  
Policy Implications ◽  
Weighting Method ◽  
Extreme Climate ◽  
Unit Value ◽  
Long Run ◽  
The Difference ◽  
Agricultural Yields ◽  
Climate Shocks

Extreme climate shocks cause agricultural yield reductions and increase long-term climate risk, altering farmers’ long-term production decisions and affecting green agricultural development (GAD). We take the 2008 snow disaster in China as an extreme climate shock, calculate the GAD index by the entropy weighting method, and use the difference-in-difference method to study the extreme climate shock’s impact on GAD. The results show that: (1) Extreme climate shocks are detrimental to GAD, with the snow disaster decreasing China’s GAD level by 3.07%. (2) The impacts of extreme climate shocks are heterogeneous across climate and economic zones, with greater impact in humid and developed regions. (3) Extreme climate shocks affect GAD mainly by reducing farmers’ willingness to cultivate, and increasing energy consumption, fertilizer, and pesticide input. (4) Extreme climate shocks do not reduce agricultural yields in the long run. Still, they reduce the total value of agricultural production and decrease the quality of agricultural products expressed in terms of unit value. The findings of this study have policy implications for developing countries in coping with extreme climate shocks and promoting GAD.

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