scholarly journals Promoting or Inhibiting? The Impact of Environmental Regulation on Corporate Financial Performance—An Empirical Analysis Based on China

2020 ◽  
Vol 17 (11) ◽  
pp. 3828 ◽  
Author(s):  
Xiang Deng ◽  
Li Li
Keyword(s):  
Sustainable Development ◽  
Financial Performance ◽  
Environmental Protection ◽  
Environmental Regulation ◽  
Empirical Analysis ◽  
Analytical Framework ◽  
Corporate Financial Performance ◽  
Ecological Civilization ◽  
The Impact ◽  
The Relationship

Today, environmental protection has become a global issue, and various environmental regulations have been actively adopted. However, are these measures promoting or harming enterprise values? Is this effect the same for enterprises with different ownership backgrounds? In order to address these problems, we conducted an empirical analysis of China’s A-share market to investigate the relationship between the New Environmental Protection Law (NEPL) launched in China and corporate financial performance, and further explore the impact of environmental supervision intensity (ESI) from the perspective of ownership. The empirical results show that there is a negative correlation between NEPL and the financial performance of high pollution enterprises. Further analysis demonstrates that there is an inverted U-shape relationship between ESI and corporate financial performance for both state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs), while the financial performance of SOEs is more sensitive and tolerant to environmental regulation than that of non-SOEs. Finally, we make recommendations for the future direction of China’s ecological civilization construction and sustainable development of enterprises based on three aspects: environmental awareness, policy considerations, and sustainable development. The innovation of this paper lies in putting NEPL and corporate financial performance in the same analytical framework for the first time, which enriches the research in this field. Meanwhile, it provides a new perspective for understanding the relationship between ESI and corporate financial performance through the analysis of nonlinearity and owner heterogeneity.

scholarly journals Impact of Companies’ Characteristics on the Relationship between Corporate Social Responsibility Disclosure and Corporate financial Performance - An Empirical Analysis

2021 ◽  
Vol 39 (7) ◽  
Author(s):  
Sayeed Zafar Qazi ◽  
Parvesh Kumar Aspal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Empirical Support ◽  
Corporate Financial Performance ◽  
Economic Point ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Strategic managers are persistently accosting with the decision of switching the scared corporate resource for the community welfare to balance the shareholders’ and multiple stakeholders’ interests. Corporate houses are presumed to not only intensify the economic priorities of investors, but must also consider the community and environmental ramifications as well. Presently, corporations are in dilemma over whether investment in corporate social responsibility (CSR) initiatives will be a cost or gain from an economic point of view. For this purpose, the association between CSR disclosure and corporate financial performance has been empirically explored and also the company characteristic has been considered as a significant and interesting factor influencing the association between CSR and corporate financial performance. The prime objective of the present paper is to examine the impact of companies’ characteristics i.e., Age of company on the relationship between corporate social responsibility disclosure and corporate financial performance. Panel data regression statistical technique has been applied to investigate and analyze the relationship. The findings of the study reveal that companies CSR have significant influence on their financial performances.  But, on the other hand the company characteristic, age of the company has no significant impact on the corporate financial performance. The findings are found consistent with earlier studies, which validate the company’s venture in undertaking the CSR initiatives. The present study addresses theoretical as well as empirical support and inspiration for the corporations towards CSR initiatives.

scholarly journals CORPORATE GOVERNANCE: THE GATEWAY TO A ROBUST CORPORATE FINANCIAL PERFORMANCE IN MALAYSIA

2020 ◽  
Vol 8 (7) ◽  
pp. 91-98
Author(s):  
Khairi Aseh ◽  
Kamal Kenny ◽  
Ravindran Pathmanathan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Global Financial Crisis ◽  
Descriptive Analysis ◽  
Corporate Financial Performance ◽  
Board Committees ◽  
Corporate Scandals ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Relationship

In recent years, with corporate scandals and the global financial crisis, the emerging concept of corporate governance has received increasing attention in the corporate world in these days. It is seen as a moral obligation and includes supporting the consistency of the law and showing ethical guidance. Corporate governance is seen as an important tool for the financial performance of companies, and investor investment decisions have become a more serious topic, so the relationship between corporate governance tools and measurement of financial performance has attracted researchers' interest in the past decade mainly in developed and developing cities. In this study, we attempted to examine the impact of corporate governance on corporate financial performance in Kuala Lumpur using a sample of 215 companies on KLSE. Like previous research, firm, age, firm size, board size, CEO duality, board composition, board committees is the independent variables and their influence is to measure the financial ROA, ROE and Tobin's q , all kinds of test is used to investigate the relationship such as descriptive analysis, Pearson moment related test and regression using first data over a period of time.

scholarly journals Relational Capability, Technological Eco-innovation and Performance: Evidence from Polish Green Companies

2021 ◽  
pp. 1-11
Author(s):  
Magdalena PICHLAK
Keyword(s):  
Financial Performance ◽  
Empirical Analysis ◽  
Research Model ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The paper presents a theoretical and empirical analysis of the impact of relational capability on the relationship between technological eco-innovation and financial performance of Polish green companies. The research model contains both radical and incremental eco-innovations.

scholarly journals Environmental Regulation and Financial Performance in China: An Integrated View of the Porter Hypothesis and Institutional Theory

2020 ◽  
Vol 12 (23) ◽  
pp. 10183
Author(s):  
Eunmi Lee
Keyword(s):  
Institutional Theory ◽  
Financial Performance ◽  
Environmental Protection ◽  
Environmental Regulation ◽  
Environmental Regulations ◽  
Command And Control ◽  
Porter Hypothesis ◽  
And Control ◽  
The Relationship ◽  
Positive Impacts

The link between environmental regulations and financial performance has long been studied, but whether command and control environmental regulation or voluntary instruments induce better results is an unsettled question. By drawing on the Porter Hypothesis, this paper examines whether both approaches to environmental protection boost forms of environmental protection regulations that have positive impacts on financial performance. By integrating institutional theory, this study also examines whether ownership structures moderate the relationship between environmental regulation and financial performance. The results from data on 183 firms listed on the Shanghai and Shenzhen Stock Exchanges confirmed that both command and control environmental regulation and voluntary instruments positively affect financial performance. This paper also found that ownership structure strengthens the relationship between command and control environmental regulation and financial performance. The findings enrich the Porter Hypothesis and contribute to environmental research by revealing that properly designed environmental regulations have positive impacts on financial performance. By drawing on institutional theory, this study further contributes to business and management studies by confirming that the specific moderator, China’s state-owned enterprises, is a crucial contributor in achieving robust financial results.

scholarly journals Can ESG Indices Improve the Enterprises’ Stock Market Performance?—An Empirical Study from China

2019 ◽  
Vol 11 (17) ◽  
pp. 4765 ◽  
Author(s):  
Xiang Deng ◽  
Xiang Cheng
Keyword(s):  
Sustainable Development ◽  
Stock Market ◽  
Information Disclosure ◽  
Market Performance ◽  
Ecological Civilization ◽  
Stock Market Performance ◽  
Secondary Industry ◽  
Future Direction ◽  
The Impact ◽  
The Relationship

Environmental, social responsibility, corporate governance (ESG) are increasingly becoming the consensus of enterprises’ development. However, whether the ESG indices of enterprises can improve their performance on stock market is rarely studied. In order to examine the relationship between enterprise’s ESG indices and stock market performance, and to further explore the heterogeneity impact of stock market performance on the enterprises’ ESG indices in different ownership backgrounds, we conducted an empirical analysis based on China’s A-share listed companies. The empirical results show that there is a positive correlation between enterprise’s ESG indices and its stock market performance. Further analysis indicates that, the impact of ESG indices on non-state-owned enterprises is greater than that on state-owned enterprises, and the stock market performance of the secondary industry is much more affected by ESG indices than that of the tertiary industry. Finally, from three aspects including information disclosure, policy protection, transformation and upgrading, recommendations are proposed on the future direction of China’s ecological civilization construction and sustainable development of enterprises.

scholarly journals Does Environmental Regulation Affect Export Quality? Theory and Evidence from China

2020 ◽  
Vol 17 (21) ◽  
pp. 8237 ◽  
Author(s):  
Jing Xie ◽  
Qi Sun ◽  
Shaohong Wang ◽  
Xiaoping Li ◽  
Fei Fan
Keyword(s):  
Environmental Regulation ◽  
Manufacturing Industry ◽  
Analytical Framework ◽  
Inhibitory Effect ◽  
Mediating Effect ◽  
Ecological Civilization ◽  
Export Quality ◽  
Environment And Trade ◽  
The Impact ◽  
Process Productivity

Most studies focus on the empirical investigation of the relationship between environment and trade, but they lack a systematic theoretical framework. To fill this gap, this study constructs an analytical framework of export competitiveness from the perspective of product quality, and reveals the theoretical mechanism of environmental regulation affecting export quality. We empirically examine the impact of environmental regulation on the export quality of China’s manufacturing industry, as well as its possible mechanism. Our findings show that environmental regulation can significantly promote the export quality upgrading of the manufacturing industry and that process and product productivity are two possible channels through which such regulation affects export quality, although their mediating effects are in opposite directions. The mediating effect of product productivity is greater than that of process productivity, indicating that environmental regulation mainly has an innovation offset effect on China’s manufacturing industry. For pollution-intensive industries, environmental regulation plays a significant promoting role through the channel of product productivity, but, for clean industries, environmental regulation has an inhibitory effect through the channel of process productivity. These findings provide important enlightenment for the coordinated development of China’s ecological civilization and trade power.

scholarly journals The Effect of Corporate Financial Performance on Market Value Moderated by Sustainable Development and Good Corporate Governance

Webology ◽  
2021 ◽  
Vol 19 (1) ◽  
pp. 51-69
Author(s):  
Aimen Ali R Mjahid ◽  
Eko Ganis Sukoharsono ◽  
Djumillah Hadiwidjojo ◽  
Arm anu
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Market Value ◽  
Corporate Financial Performance ◽  
London Stock Exchange ◽  
Good Corporate Governance ◽  
Equitable Treatment ◽  
The Impact

This research aims to analyze the impact of corporate financial performance on the market value moderated by good corporate governance and sustainability development in Great Britain companies listed in London stock exchange. This research tests the causal relationships among variables including corporate financial performance; market value moderated by good corporate governance and sustainable development in UK companies listed in London stock exchange. Findings of this research are (1) Profit is reflection of the success in implementing the activities and operations of the company. (2) The result presented the current practice of good corporate governance in London stock exchange, showed that most of the companies concerning the implementation of good corporate governance principles, which include: rights of shareholders, equitable treatment of shareholders, role of stakeholders in corporate governance. Originality of this research is the Impact of CFP on firm market value has been documented in literature. Ideally, CFP on market value should be correlated, but studies on CFP and market value have yielded mixed results positive, negative and neutral impact. This research can benefit to the companies with their existing policy modifications as per requirements in the present of United Kingdom financial environment.

scholarly journals Understanding the Impact of ESG Practices in Corporate Finance

2021 ◽  
Vol 13 (7) ◽  
pp. 3746
Author(s):  
Sang Kim ◽  
Zhichuan (Frank) Li
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Credit Rating ◽  
Social Factor ◽  
Positive Influence ◽  
Corporate Financial Performance ◽  
The Social ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

This study examines the relationship between environmental, social, and governance (ESG) factors and corporate financial performance. Specifically, we study various individual ESG categories, both ESG strengths and concerns, and aggregate ESG factor and their impact on corporate financial performance including profitability and financial risk. We find a positive effect of ESG factors on corporate profitability, and the effect is more pronounced for larger firms. Among different ESG categories, corporate governance has the most significant impact, particularly for firms with weak governance. We also find that ESG variables generally have a positive influence on credit rating. In particular, the social factor has the most significant impact on credit rating, while environmental score surprisingly has a negative effect. Overall, this research provides a rationale for ESG integration in the context of investment management and portfolio construction to maximize value and minimize risk.

scholarly journals The Relationship between Sustainable Development Practices and Financial Performance: A Case Study of Textile Firms in Vietnam

2020 ◽  
Vol 12 (15) ◽  
pp. 5930
Author(s):  
Thi Thu Hien Phan ◽  
Hiep Xuan Tran ◽  
Trung Thanh Le ◽  
Ninh Nguyen ◽  
Simon Pervan ◽  
...  
Keyword(s):  
Sustainable Development ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Social Practices ◽  
Equation Modeling ◽  
Environmental Practices ◽  
The Impact ◽  
The Relationship

Sustainable development practices have become very important for firms to go beyond short-term profitability, towards economic, environmental and social sustainability. This research aims to examine the relationship between a firm’s sustainable development practices and its financial performance. Modelled as a multidimensional construct, sustainable development practices are represented by environmental practices, social practices in the workplace and social practices in the community, while financial performance is determined by profitability and growth. Using a mixed method survey, data were obtained from 389 textile firms in Vietnam, where there is a dire need to promote sustainable and environmental practices. Data analysis using partial least squares structural equation modeling demonstrates that sustainable development practices positively affect financial performance directly and indirectly via customer loyalty, employee satisfaction and corporate reputation. The findings also reveal the moderating role of entrepreneurial orientation, whereby the impact of sustainable development practices on financial performance is stronger for firms that are more innovative, proactive and willing to take risks. Taken together, these findings provide support for firms to holistically implement sustainable development practices and adopt an entrepreneurial orientation.

Capital Structure and Earnings per Share: An Empirical Analysis of Indian Corporate Sector

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Harvinder Singh Mand ◽  
Manjit Singh
Keyword(s):  
Capital Structure ◽  
Empirical Analysis ◽  
Corporate Sector ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper intends to measure the impact of capital structure on EPS (earnings per share) in Indian corporate sector. Fifteen control variables along with capital structure have been selected to know their impact on EPS. Panel data regression has been applied to establish the relationship among dependent and independent variables. It is found from the empirical analysis that the relation of capital structure with EPS has been statistically insignificant in Indian corporate sector among all specific industries except telecommunication industry. The results are consistent with Modigliani-Miller approach.

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