scholarly journals Linking Corporate Environmental Performance to Financial Performance of Pakistani Firms: The Roles of Technological capability and Public awareness

2020 ◽  
Vol 12 (4) ◽  
pp. 1446
Author(s):  
Weiwei Wu ◽  
Rizwan Ullah ◽  
Syed Jamal Shah
Keyword(s):  
Financial Performance ◽  
Indirect Effect ◽  
Indirect Effects ◽  
Environmental Performance ◽  
Public Awareness ◽  
Technological Capability ◽  
Direct And Indirect Effects ◽  
Corporate Environmental Performance ◽  
Manufacturing Companies ◽  
The Impact

This research investigates the corporate environmental performance (CEP) literature toward its financial performance of the firm. CEP is defined as the exercise and practices of companies to choose sensible measures to save and develop environment-friendly green activities. The influence of CEP on the financial performance of the firm via technological capability was examined. Furthermore, public awareness was hypothesized to moderate the impact of CEP on technological capability indicating moderation mediation. When public awareness was high, the relationship between the CEP and technological capability should be stronger. Content analysis was used for data collection. The model was tested using a sample of 1491 observations from the manufacturing companies of Pakistan. The data were collected between the period 2008 and 2017 from the annual reports of the companies, State Bank of Pakistan, and Pakistan Stock exchange. A hierarchical regression analysis was used for data analysis. Using bootstrap analysis, we used model 8 in Stata to examine conditional direct and indirect effects. Results supported the indirect effect of CEP on financial performance through strengthening technological capability. Both direct and indirect effects were significant. Consistent with theoretical assumptions, the indirect effect becomes stronger with high public awareness and diminished with low public awareness. Both theoretical and practical contributions are discussed based on the outcomes.

Measuring the effectiveness of managerial action in SMEs

2007 ◽  
Vol 30 (12) ◽  
pp. 892-914 ◽  
Author(s):  
Glenn A. Metts
Keyword(s):  
Indirect Effects ◽  
Equation Modeling ◽  
Direct And Indirect Effects ◽  
Manufacturing Companies ◽  
Automotive Manufacturing ◽  
Content Type ◽  
Managerial Action ◽  
The Impact ◽  
Competitive Forces ◽  
Strategy Making

PurposeThe paper's purpose is to investigate the direct and indirect effects of industry competitive forces on strategy‐making and performance in small‐to‐medium‐sized manufacturing companies.Design/methodology/approachThe paper's approach is a survey design with structural equation modeling used for hypotheses testing.FindingsThe findings provide strong support for the mitigating role of managerial action through the strategy‐making process and indications that this is true regardless of small‐to‐medium‐sized enterprise (SME) size. Also, automotive‐manufacturing SMEs seem to exhibit higher levels of competitive factors compared with non‐automotive manufacturing SMEs.Research limitations/implicationsThe major limitation of this research is that the survey was taken in the Mid‐western USA and involved only SME manufacturing organizations. The research should be extended to other geographic regions, industry types, and larger organizations.Practical implicationsMany small company managers feel that they have little impact on industry‐wide macro‐economic and industry‐specific forces. This research indicates that managers in SMEs can mitigate some of the negative effects of industry competitive factors through strategy‐making activities.Originality/valueThis research is unique in several ways. It is the only research that has clearly identified and successfully measured the impact of managerial action in SMEs. It demonstrates that managerial action can be measured by comparing the direct and indirect effects of industry competitive forces on performance. It further identifies the need for a self‐assessment tool to measure the effectiveness of managerial action of top managers in SMEs.

scholarly journals The Relationship between LGBT Executives and Firms’ Value and Financial Performance

2021 ◽  
Vol 14 (12) ◽  
pp. 596
Author(s):  
Isabel Costa Lourenço ◽  
Donatella Di Marco ◽  
Manuel Castelo Branco ◽  
Ana Isabel Lopes ◽  
Raquel Wille Sarquis ◽  
...  
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Indirect Effect ◽  
Indirect Effects ◽  
Firm Value ◽  
Direct And Indirect Effects ◽  
Leadership Positions ◽  
The Relationship ◽  
Positive Effect ◽  
Policies And Practices

Drawing on resource-based theory, we analyze the relationship between having LGBT executives in a firm’s leadership positions and its value and financial performance. The existence of LGBT executives is considered to be associated with employee and customer goodwill towards LGBT-friendly policies and practices and to lead to human capital and reputational benefits. Our findings suggest that there is a positive effect of the presence of LBGT executives on a firm’s value, both directly and indirectly, through its effect on the firm’s financial performance. We interpret this as suggesting that besides the direct effect of the existence of LGBT executives on a firm’s value, an indirect effect also exists, mediated through financial performance, presumably through the effect that this has on employee and customer goodwill towards LGBT-friendly policies and practices. As far as we are aware, our study is the first to examine the impacts of the presence of LGBT executives, as well as distinguish between its direct and indirect effects on firm value.

scholarly journals Fundamental Environment dan Kinerja Keuangan (Studi pada Perusahaan Pertambangan Dan Manufaktur Yang Terdaftar di ISSI 2016-2019)

2021 ◽  
Vol 4 (1) ◽  
pp. 124
Author(s):  
Siti Halizah Asaqdah ◽  
Rosyid Nur Anggara Putra
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Sampling Technique ◽  
Iso 14001 ◽  
Stock Index ◽  
Manufacturing Companies ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Analysis Technique ◽  
The Impact

<p class="bdabstract">The study aims to examine the impact of environmental performance, environmental disclosure and ISO 14001 on financial performance. The independent variables used to consist of environmental performance as measured by the PROPER rating, environmental disclosure as proxied by the Indonesia Environmental Reporting (IER) index, and ISO 14001 measured by a dummy variable, while financial performance as proxied by ROA is the dependent variable. The purposive sampling technique was used for sampling which resulted in a total of 30 sample companies which were mining and manufacturing companies that were included in the Indonesian Sharia Stock Index (ISSI) from 2016 to 2019. Multiple linear regression tests were used in the data analysis technique. The test results show that ISO 14001 has a positive and significant effect on financial performance, while environmental performance and environmental disclosure have no effect on financial performance.</p>

Environmental management elements and corporate environmental performance of SMEs in Malaysia

2007 ◽  
Vol 4 (2) ◽  
pp. 109
Author(s):  
Hanim Norza Baba
Keyword(s):  
Environmental Management ◽  
Environmental Performance ◽  
Process Management ◽  
Management Practices ◽  
Pollution Prevention ◽  
Corporate Environmental Performance ◽  
Manufacturing Companies ◽  
Environmental Leadership ◽  
Reward And Recognition ◽  
The Impact

This research examined the existence of environmental management practices within private limited manufacturing companies in Malaysia, and the impact on corporate environmental performance. The study examined environmental management elements that include environmental leadership, environmental process management, top management commitment, employee involvement, reward and recognition, environmental quality management programs, and pollution prevention technologies, and their relationship to corporate environmental performance.

Is ISO14001 certification of the corporate effective?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhaoguo Zhang ◽  
Chi Zhang ◽  
Danting Cao
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Positive Impact ◽  
Developed Countries ◽  
Moderating Effect ◽  
Institutional Pressures ◽  
Corporate Environmental Performance ◽  
Positive Role ◽  
Content Type ◽  
The Impact

Purpose At present, the number of corporates certified by ISO14001 in China is ranked first in the world. This paper aims to explore the effectiveness of ISO14001 certification and the moderating effect of financial performance and external institutional pressures on the effectiveness. Design/methodology/approach This paper selects Shenzhen and Shanghai A-share listed companies in the heavy polluting industry from 2010 to 2017 as the research sample, and studies the impact of ISO14001 certification on corporate environmental performance and the moderating effect of financial performance and external institutional pressures. Findings This paper finds that ISO14001 certification has a positive impact on corporate environmental performance; corporate financial performance has a positive moderating effect in the relationship between ISO14001 certification and corporate environmental performance; government regulation, industry competition and media supervision also have positive moderating effects; and corporate environmental information disclosure has not yet had a positive moderating effect. Originality/value Most of the current empirical research on this topic are carried out in the context of developed countries, and lack empirical evidence from developing countries. This paper will help to make up for this deficiency. In addition, this paper will help explain why the effectiveness of ISO14001 certification generates variation in different corporates and under what conditions it will play a positive role.

scholarly journals Does Eco-Efficiency Improve Financial Performance of Manufacturing Companies in Indonesia?

2019 ◽  
Vol 6 (2) ◽  
pp. 137-150
Author(s):  
Inten Meutia ◽  
Marini Ramadhani ◽  
Mohamad Adam
Keyword(s):  
Linear Regression ◽  
Financial Performance ◽  
Multiple Linear Regression ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Average Level ◽  
Manufacturing Companies ◽  
Regression Test ◽  
Total Observation ◽  
The Impact

This study aims to determine the impact of environmental performance proxied by eco-efficiency on the financial performance of manufacturing companies in Indonesia. İn this study, the multiple linear regression test was used to analyse the data.  The sample of this study is manufacturing companies that listed at the Indonesia Stock Exchange from 2012 until 2016 with the total observation is 80 firm-years.The results of this study indicated that the average level of eco-efficiency of the manufacturing companies is still relatively low (0.38). The environmental performance as measured by the eco-efficiency has a positive significant effect on the financial performance of the companies. Therefore, this study suggests that companies can improve their financial performance by enhancing their eco-efficiency level.This study aims to determine the impact of environmental performance proxied by eco-efficiency on the financial performance of manufacturing companies in Indonesia. İn this study, the multiple linear regression test was used to analyse the data.  The sample of this study is manufacturing companies that listed at the Indonesia Stock Exchange from 2012 until 2016 with the total observation is 80 firm-years.The results of this study indicated that the average level of eco-efficiency of the manufacturing companies is still relatively low (0.38). The environmental performance as measured by the eco-efficiency has a positive significant effect on the financial performance of the companies. Therefore, this study suggests that companies can improve their financial performance by enhancing their eco-efficiency level.

Corporate environmental performance–financial performance relationship in India using eco-efficiency metrics

2020 ◽  
Vol 31 (6) ◽  
pp. 1497-1514
Author(s):  
S. Sudha
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Environmental Performance ◽  
Emerging Market ◽  
Time Lag ◽  
Positive Association ◽  
Empirical Literature ◽  
Corporate Environmental Performance ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this study is to attempt to empirically examine the impact of disaggregate, eco-efficiency-based measures of corporate environmental performance (CEP) on corporate financial performance (CFP) of Indian companies. Further, recent theories contending a bidirectional causality between them is also explored.Design/methodology/approachSecondary data of 224 Indian S&P 500 companies from 2002 to 2011 are used to run panel data regression models for examining the impact of CEP measures on accounting-based CFP measures.FindingsThe empirical results are statistically significant and provide evidence for a positive association of eco-efficiency-based CEP metrics on CFP metrics, thereby supporting Porter's win–win hypothesis. Further, the results evidence a positive bi-directional causality between CEP and CFP for one period time lag signalling possibility of mutual reinforcement in CEP–CFP relationship.Research limitations/implicationsThe study has used data for the period 2002–2011 and eco-efficiency metrics – energy, water and material efficiencies due to availability.Practical implicationsThe results have implications to both corporate managers as well as policymakers across all industries for emphasizing on eco-efficiency-based (proactive) environmental sustainability initiatives to enhance both financial and environmental bottom lines.Originality/valueThe study contributes to scarce empirical literature analysing the impact of CEP on financial performance. To the best of authors's knowledge, event studies, portfolio studies and perceptual data-based empirical studies exist in India. This study is unique in that it examines long run effect of eco-efficiency-based CEP metrics which is pertinent in a rapidly growing emerging market – India, where, eco-efficiency is considered quintessential for sustainable development.

scholarly journals Quantifying the role of fire in the Earth system – Part 2: Impact on the net carbon balance of global terrestrial ecosystems for the 20th century

2013 ◽  
Vol 10 (11) ◽  
pp. 17309-17350 ◽  
Author(s):  
F. Li ◽  
B. Bond-Lamberty ◽  
S. Levis
Keyword(s):  
20Th Century ◽  
Direct Effect ◽  
Biomass Burning ◽  
Indirect Effect ◽  
Indirect Effects ◽  
Carbon Balance ◽  
Terrestrial Ecosystems ◽  
Carbon Gain ◽  
Direct And Indirect Effects ◽  
The Impact

Abstract. Fire is the primary terrestrial ecosystem disturbance agent on a global scale. It affects the net carbon balance of global terrestrial ecosystems by emitting carbon directly and immediately to the atmosphere from biomass burning (i.e., the fire direct effect), and by changing net ecosystem productivity and land-use carbon loss in post-fire regions due to biomass burning and fire-induced vegetation mortality (i.e., the fire indirect effect). Here, we provide the first quantitative assessment of the impact of fire on the net carbon balance of global terrestrial ecosystems during the 20th century, and investigate the roles of fire direct and indirect effects. This was done by quantifying the difference between the 20th century fire-on and fire-off simulations with the NCAR Community Land Model CLM4.5 as model platform. Results show that fire decreases the net carbon gain of global terrestrial ecosystems by 1.0 Pg C yr–1 averaged across the 20th century, as a result of the fire direct effect (1.9 Pg C yr–1) partly offset by the indirect effect (−0.9 Pg C yr–1). Fire generally decreases the average carbon gains of terrestrial ecosystems in post-fire regions, which is significant over tropical savannas and some North American and East Asian forests. The general decrease of carbon gains in post-fire regions is because the fire direct and indirect effects have similar spatial patterns but with opposite function and the former (which decreases the carbon gain of land) is generally stronger. Moreover, the effect of fire on net carbon balance significantly declines prior to ~1970 with a trend of 8 Tg C yr–1 due to increasing fire indirect effect, and increases afterward with a trend of 18 Tg C yr–1 due to increasing fire direct effect.

scholarly journals Corporate Environmental Performance in China: The Moderating Effects of the Media versus the Approach of Local Governments

2020 ◽  
Vol 18 (1) ◽  
pp. 150
Author(s):  
Zhiru Guo ◽  
Chao Lu
Keyword(s):  
Environmental Protection ◽  
Environmental Performance ◽  
Local Governments ◽  
Random Effect ◽  
Random Effect Model ◽  
Corporate Environmental Performance ◽  
Media Attention ◽  
The Media ◽  
The Government ◽  
The Impact

This article selects the listed companies in China’s A-share heavy pollution industry from 2014 to 2018 as samples, uses a random effect model to empirically test the relationship between media attention and corporate environmental performance and examines the impacts of local government environmental protection and property nature on that relationship. Results are as follow: (1) Media attention can significantly affect a company’s environmental performance. The higher the media attention, the greater the company’s supervision and the better its environmental performance. (2) In areas where the government pays less attention to environmental protection, the impact of media on corporate environmental performance is more obvious, but in other areas, the impact of media on environmental performance cannot be reflected; (3) The media attention is very significant for the environmental performance improvement of state-owned enterprises, and it is not obvious in non-state-owned enterprises. (4) A further breakdown of the study found that the role of media attention in corporate environmental performance is only significant in the sample of local governments that have low environmental protection and are state-owned enterprises. This research incorporates the local government’s emphasis on environmental protection into the research field of vision, expands the research scope of media and corporate environmental performance, and also provides new clues and evidence for promoting the active fulfillment of environmental protection responsibilities by companies and local governments.

Accounts Receivable: Payable Impact on Each Other with Special Reference to Financial Performance—A Study of Small Cap Companies

2020 ◽  
Vol 47 (4) ◽  
pp. 362-373
Author(s):  
Sangeeta Mittal ◽  
Monika
Keyword(s):  
Financial Performance ◽  
Trade Credit ◽  
Unit Root Test ◽  
Effective Management ◽  
Manufacturing Companies ◽  
Causality Test ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
The Impact ◽  
Test Correlation

Trade credit is important as a funding source for companies having a liquidity shortage. Trade credit comprises of both accounts receivable and payable. The financial literature has discussed the impact of accounts receivable or payable on a company’s financial performance. However, there is a lack of studies on the effects of accounts receivable and payable on each other and further its effect on the financial performance of small-cap companies. Financial performance is determined using the profitability and value of the company. The researchers examined the financial performance implications of offering and receiving trade credit for a sample of 193 BSE small-cap manufacturing companies in India during the period 2011–2019. Granger causality test, Levin, Lin and Chu Unit root test, correlation and regression have been used for data analysis. The finding suggested that accounts receivable influenced the use of accounts payable. The aftermath of accounts payables is that it negatively and significantly affected the profitability and had an insignificant relationship with the value of the company. The result implies that effective management of accounts receivable can influence the application of accounts payable that improves a company’s profits and value. The current study is useful for SMEs’ managers in determining the financial performance and capital structure.

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