scholarly journals Institutional Investors’ Corporate Site Visits and Firms’ Sustainable Development

2020 ◽  
Vol 12 (17) ◽  
pp. 7036
Author(s):  
Yize Hu ◽  
Jun Shan ◽  
Peixun Zhan
Keyword(s):  
Sustainable Development ◽  
Institutional Investors ◽  
Information Acquisition ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Econometric Analysis ◽  
Environmental Investment ◽  
The Government ◽  
The Impact

Institutional investors are essential stakeholders of the firm, and they care about firms’ sustainable development. In this study, we focused on a prevalent and essential type of information acquisition activity of institutional investors: corporate site visits, which refers to their trip to the firms’ headquarters and factories. We investigated the impact of institutional investors’ corporate site visits on firms’ likelihood of environmental violation. Using Chinese listed manufacturing firms in the Shenzhen Stock Exchange from 2009 to 2017, the econometric analysis shows that institutional investors’ corporate site visits significantly decrease firms’ likelihood of environmental violation. Moreover, this effect is more pronounced for firms in heavily polluting industries, firms not owned by the government, and firms with less institutional shareholding. Furthermore, we show that institutional investors’ corporate site visits prevent environmental violations by increasing firms’ environmental investment. Our study highlights the importance of institutional investors’ corporate site visits by showing that they are beneficial to the firms visited.

scholarly journals Female Board Directors and Corporate Environmental Investment: A Contingent View

2021 ◽  
Vol 13 (4) ◽  
pp. 1975
Author(s):  
Liang Hu ◽  
Defeng Yang
Keyword(s):  
Stock Exchange ◽  
Pollution Level ◽  
Upper Echelons ◽  
Board Diversity ◽  
Environmental Investment ◽  
Upper Echelons Theory ◽  
Female Directors ◽  
Board Directors ◽  
The Government ◽  
The Impact

Board diversity has become a major topic in a developed context, yet its impact has not been examined by scholars in emerging economies where the liberalization of women is not equally popular. Based on upper echelons theory, this study explores the impact of female board directors on corporate environmental investment (CEI), as well as its boundary conditions under different institutional backgrounds. Taking 463 A-share listed corporations in Shanghai and Shenzhen Stock Exchange from 2008–2017 as examples, we reveal that female board directors are positively related to CEI. In addition, provincial pollution level and regional legal development strengthen the positive relationship between female board directors and CEI. These findings contribute to upper echelons theory that board diversity facilitates corporate pro-social behaviors, especially under pressure from the external environment, emphasizing the influence of female directors’ characteristics. Our research also has managerial implications that corporations may enhance their representation of female directors for better environmental actions and subsequent better marketing performance as well as improved reputation. Moreover, the government is suggested to put forward regulations that increase the proportion of female directors in order to enhance corporate environmental investment.

The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa

2016 ◽  
Vol 34 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Omokolade Akinsomi ◽  
Katlego Kola ◽  
Thembelihle Ndlovu ◽  
Millicent Motloung
Keyword(s):  
Stock Returns ◽  
Factor Model ◽  
Stock Exchange ◽  
Sharpe Ratio ◽  
Economic Empowerment ◽  
Content Type ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of Broad-Based Black Economic Empowerment (BBBEE) on the risk and returns of listed and delisted property firms on the Johannesburg Stock Exchange (JSE). The study was investigated to understand the impact of Black Economic Empowerment (BEE) property sector charter and effect of government intervention on property listed markets. Design/methodology/approach – The study examines the performance trends of the listed and delisted property firms on the JSE from January 2006 to January 2012. The data were obtained from McGregor BFA database to compute the risk and return measures of the listed and delisted property firms. The study employs a capital asset pricing model (CAPM) to derive the alpha (outperformance) and beta (risk) to examine the trend amongst the BEE and non-BEE firms, Sharpe ratio was also employed as a measurement of performance. A comparative study is employed to analyse the risks and returns between listed property firms that are BEE compliant and BEE non-compliant. Findings – Results show that there exists differences in returns and risk between BEE-compliant firms and non-BEE-compliant firms. The study shows that BEE-compliant firms have higher returns than non-BEE firms and are less risky than non-BEE firms. By establishing this relationship, this possibly affects the investor’s decision to invest in BEE firms rather than non-BBBEE firms. This study can also assist the government in strategically adjusting the policy. Research limitations/implications – This study employs a CAPM which is a single-factor model. Further study could employ a multi-factor model. Practical implications – The results of this investigation, with the effects of BEE on returns, using annualized returns, the Sharpe ratio and alpha (outperformance), results show that BEE firms perform better than non-BEE firms. These results pose several implications for investors particularly when structuring their portfolios, further study would need to examine the role of BEE on stock returns in line with other factors that affect stock returns. The results in this study have several implications for government agencies, there may be the need to monitor the effect of the BEE policies on firm returns and re-calibrate policies accordingly. Originality/value – This study investigates the performance of listed property firms on the JSE which are BEE compliant. This is the first study to investigate listed property firms which are BEE compliant.

Stock Market Reaction on Green-Bond Issue: Evidence from Indian Green-Bond Issuers

2021 ◽  
pp. 097226292110225
Author(s):  
Rakesh Kumar Verma ◽  
Rohit Bansal
Keyword(s):  
Stock Returns ◽  
Financial Institutions ◽  
Stock Price ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Developed Countries ◽  
Low Carbon ◽  
Bond Issue ◽  
The Government ◽  
The Impact

Purpose: A green bond is a financial instrument issued by governments, financial institutions and corporations to fund green projects, such as those involving renewable energy, green buildings, low carbon transport, etc. This study analyses the effect of green-bond issue announcement on the issuer’s stock price movement. It shows the reaction of the stock price after the issue of green bonds. Methodology: This study is based on secondary data. Green-bond issue dates have been collected from newspaper articles from different online sources, such as Business Standard, The Economic Times, Moneycontrol, etc. The closing prices of stocks have been taken from the NSE (National Stock Exchange of India Limited) website. An event window of 21 days has been fixed for the study, including the 10 days before and after the issue date. Data analysis is carried out through the event study method using the R software. Calculation of abnormal returns is done using three models: mean-adjusted returns model, market-adjusted returns model and risk-adjusted returns model. Findings: The results show that the issue of green bonds has a significant positive effect on the stock price. Returns increase after the green-bond issue announcement. Although the announcement day shows a negative return for all the samples taken for the study, the 10-day cumulative abnormal return (CAR) is positive. Thus, green-bond issues lead to positive sentiments among investors. Research implications: This research article will help the government issue more green bonds so that the proceeds can be utilized for green projects. The government should motivate corporations and financial institutions to issue more green bonds to help the economy grow. In India, very few organizations have issued a green bond. It will be beneficial if these players issue green bonds, as it will increase the firms’ value and boost returns to the investors. Originality/value: The effect of green-bond issue on stock returns has been analysed in some studies in developed countries. This is the first study to examine the impact of green-bond issue on stock returns in the Indian context, to the best of our knowledge.

scholarly journals Corporate Governance Codes and Intellectual Capital: Evaluating the Performance Impacts among Government-Linked Companies in Malaysia and Singapore – A Panel Data Analysis

2021 ◽  
Vol 124 ◽  
pp. 08004
Author(s):  
Yen Wen Chang ◽  
Ng Ching Yat David ◽  
Suet Cheng Low ◽  
Peck Ling Tee
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Panel Data ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Policy Makers ◽  
Corporate Governance Codes ◽  
The Government ◽  
The Impact

The objective of this study was to examine and compare the effects of corporate governance (CG) and intellectual capital (IC) between Malaysia Government-Linked Companies’ (M-GLCs) and Singapore Government-Linked Companies’ (S-GLCs) firm performance (FP). Panel data analysis was employed to analyse the impact of CG’s variables and IC’s variables on FP. FP was measured by Return on Total Assets (ROA), Tobin’s Q and Earnings Per Share (EPS). Data was gathered from the website of Bursa Malaysia and the Stock Exchange of Singapore from 2005 to 2018. The sample size of this research was 60 GLCs which comprised of 34 M-GLCs and 26 S-GLCs. There were a total 840 firm year observations. Results indicated that CGs of S-GLCs have greater impact on FP when compared to M-GLCs while the findings of the IC of M-GLCs have greater impact on FP compared to S-GLCs. This research was helpful in offering further insights of CG practices and IC efficiency to the Government, Board of Directors, policy makers, shareholders and stakeholders.

scholarly journals The Impact of Nongovernmental Organizations (NGOs) on Sustainable Development Projects in Katsina Metropolis

2019 ◽  
pp. 1-8
Author(s):  
Naseer Babangida Muazu ◽  
Abubakar Abdullahi
Keyword(s):  
Sustainable Development ◽  
Health Care Services ◽  
Development Projects ◽  
Skills Acquisition ◽  
Chi Square ◽  
Grass Root Level ◽  
The Government ◽  
Chi Square Analysis ◽  
The Impact ◽  
Structured Questionnaire

Nigeria is facing profound social, economic and environmental impact of population growth, development and environmental constraints. It is apparent that government alone has limited capacity to deal with all these problems. NGOs being one of the most effective partners have been playing supportive roles with the government, in some cases, they are considered more effective to get attached with the grass root level developmental initiatives. However, despite the role NGOs played, their presence and impact is not fully evaluated, recognized and appreciated by many governments and community members. It is for this reason this article attempts to examine whether projects executed by NGOs have any impact on sustainable development in Katsina Metropolis, given special emphasis on projects that dealt with environmental protection, poverty alleviation and health care services. The study further look at whether efficiency of NGOs officials has any impact on success of sustainable development projects execution.  A structured questionnaire was used to collect data from 150 NGOs beneficiaries in five (5) selected political wards of twelve (12) in Katsina metropolis. Interviews was used to collect relevant data using a structured questionnaire from NGOs officials which include; development officers and facilitators in five (5) selected NGO offices operating in Katsina Metropolis namely; Save the Children, Service to Humanity Foundation, Murna Foundation, Katsina Friends of Environment and Makudawa Skills Acquisition. Frequency and chi-square analysis was used to present the results. The findings revealed that NGOs are complementing government efforts towards achieving sustainable development through their projects, and efficiency of NGOs officials has significant impact on success of sustainable development projects executed in the area. The findings of the study can benefit government and NGOs in creating more areas of collaboration in order to achieve sustainable development.

scholarly journals The Impact Of Good Corporate Governance To Manufacturing Firm’s Profitability And Firm’s Value

2016 ◽  
Vol 5 (2) ◽  
pp. 181-196 ◽  
Author(s):  
Johanes Sumarno ◽  
Sendy Widjaja ◽  
Subandriah Subandriah
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Fixed Effects Model ◽  
Good Corporate Governance ◽  
Oecd Principles ◽  
Equitable Treatment ◽  
The Impact

This paper studied the behavior of management toward the implementation of Good Corporate Governance in Indonesia to determine whether it has any influence towards profitability and its implication to the Manufacturing Firms’ value publicly listed in Indonesian Stock Exchange. There were 41 corporations who met the criteria of the survey. The data were analyzed using Panel Regression with fixed effects Model. The empirical findings show that the implementation of Corporate Governance in Indonesia has a positive, significant and direct impact toward firms’ profitability and firms’ value. Corporate Governance principles based on OECD principles that have positive and significant impact to both profitability and Firms’ Valueis Rights of Shareholders, Role of Stakeholders, Responsibilities of the Board Commissioners and Board of Directors. The principles that have significance and negative impact towards corporate profitability and value, are: Equitable treatment of shareholders and Disclosure and Transparencies. The most significant principle influencing profitability and firms’ value is Disclosure and Transparencies. Profitability plays a greater role in influencing Manufacturing Firms’ value in Indonesia. DOI: 10.15408/sjie.v5i2.3542

scholarly journals ANALISIS FAKTOR YANG BERPENGARUH TERHADAPPROFITABILITASPERUSAHAAN MANUFAKTUR YANG TERDAFTAR PADA INDEKS SAHAM SYARIAH INDONESIA TAHUN 2011-2015

2019 ◽  
Vol 5 (6) ◽  
pp. 451
Author(s):  
Muhammad Nurul Qomaruddin ◽  
Ari Prasetyo
Keyword(s):  
Stock Exchange ◽  
Analysis Data ◽  
Research Problem ◽  
Manufacturing Firms ◽  
Stock Index ◽  
Independent Variables ◽  
Analysis Technique ◽  
Equity Ratio ◽  
Theory Research ◽  
The Impact

The purpose of this study is to analyze the impact of Days Inventory, Days Receivable, Days Payable, Leverage . Debt to Equity Ratio, Current Ratio on Manufacturing Firms profitability in Indonesian Sharia Stock Index by 2011 until 2015. The problems in this research gap from former Research and the business gap phenomenon from the Manufacturing Firms over period 2011-2015. Therefore a deeper research to observe the problems which influence Return on Assets with reasonable theory Research variables consisted of six independent variables and 1 dependent variable is profitability (ROA). Data analysis technique to answer research problem and examine research hypothesis using Panel Data Regression Analysis. Data obtained from Indonesian Stock Exchange published via Website realtime, obtained 30 data samples. Based on the research, known that the effect of Days Payable on Manufacturing Firmsprofitability partially significant. Meanwhile, other independent variables partially not significant. Otherhand the effect ofall six independent variable simultaneous significant effect on Manufacturing Firms profitability

scholarly journals Causal Relation Between Stock Market Performance and Firm Investment in China: Mediating Role of Information Asymmetry

SAGE Open ◽  
2019 ◽  
Vol 9 (4) ◽  
pp. 215824401988514
Author(s):  
Ghulam Hussain Khan Zaigham ◽  
Xiangning Wang ◽  
Haji Suleman Ali
Keyword(s):  
Information Asymmetry ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Causal Relation ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Price Performance ◽  
Stock Market Performance ◽  
The Impact

The main objectives of this study are to examine the impact of stock price performance on firm’s investment and to investigate the counter impact of changes in investment expenditures on stock price performance. The random effects model was applied on the panel data of Chinese manufacturing firms listed at the Shanghai Stock Exchange and the Shenzhen Stock Exchange during the period 2002 to 2016. The sample contains 398 firms with 5,970 observations. Although there is a statistically significant and negative relationship between stock price and investment expenditures, the impact of stock price on investment expenditures is far greater than that of investment expenditures on stock price. Information asymmetry positively mediates both investment sensitivity to stock prices and stock prices sensitivity to investment. This study is a valuable contribution toward the analysis of investment decision making by manufacturing firms in China. It also provides guidelines for investors to assess the informational status of the capital market before making investment decisions and to comprehensively understand the different decisions made by firms with regard to the issue of new stocks and the indirect information attached with such issues.

scholarly journals Cash Conversion Cycle and Profitability, Evidence from Jordan

2019 ◽  
Vol 11 (2) ◽  
pp. 81
Author(s):  
Manar Moffadi Al-Mohareb
Keyword(s):  
Stock Exchange ◽  
Theoretical Aspect ◽  
Practical Aspect ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Amman Stock Exchange ◽  
The Impact

This study investigates the impact of working capital management and its components on profitability as a practical aspect, and how is compatible with the theoretical aspect. Besides, it examines other financial factors that may affect profitability by using a sample of Jordanian manufacturing firms listed in the Amman Stock Exchange for the period (2016-2018). Theoretically, manufacturing firms that have been studied have current assets over half of their total assets. Therefore, the working capital management role will be clearer on firm profitability.Practically, the results indicate that there is a significant relationship between the cash conversion cycle, which is considered as a proxy of working capital management, and profitability of the manufacturing firms. This provides an opportunity to create value for shareholders by decreasing receivable accounts and inventory, enhancing the profitability of the firms and reducing the collection period and by adopting effective credit policy.

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