scholarly journals ENVIRONMENTAL RESPONSIBILITY AND FIRM FINANCIAL PERFORMANCE: EVIDENCE FROM INTERNATIONAL OIL COMPANIES IN NIGER DELTA

2021 ◽  
Vol 6 (1) ◽  
pp. 8-20
Author(s):  
Nosakhare Ikponmwosa ◽  
Ogbeide Osaremwinda Darlington
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Environmental Sustainability ◽  
Niger Delta ◽  
Positive Relationship ◽  
Environmental Responsibility ◽  
Causality Test ◽  
Oil Companies ◽  
Firm Financial Performance ◽  
The Impact

This study examines the relationship between environmental responsibility and financial performance of international oil companies in Niger Delta region of Nigeria. In pursuance of this, a sample of twelve (12) international oil firms was used for the study. Secondary data were obtained from the audited annual financial reports of the selected companies and Federal Ministry of Environment covering the period of 2009 to 2018. The data were analysed using descriptive statistics, correlation analysis, panel causality test and fixed effect, selected as the appropriate strategy after using the Hausman test. Based on the data analysis, the study reveals that there is a bi-directional relationship between environmental responsibility and firms’ financial performance. The study further reveals that there is a positive relationship between environmental responsibility and firms’ financial performance. When environmental responsibility interacts with corporate governance, the impact is found to have a significant positive relationship with firms’ financial performance. The study also finds that growth opportunities and firm size are positively and significantly related to firms’ financial performance. Based on the findings, the study recommends effective regulation, strong institutional mechanism and good corporate governance structures to enforce or engender environmental sustainability and compel firms to adopt the culture/strategy of sustainable finance. Such strategy will alleviate the curse of dependency and poverty that comes with the destruction of the environment and the means of sustenance of the people in oil producing communities.

scholarly journals The Impact Of Corporate Governance on The Financial Performance in Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 41-58
Author(s):  
NURFATANAH ABDULLAH
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Audit Committee ◽  
Committee Meeting ◽  
Board Size ◽  
Firm Financial Performance ◽  
Normality Test ◽  
Lm Test ◽  
The Impact

The aim of this study is to investigate the relationship between corporate governance and firm financial performance in Malaysia. This study is mainly focusing on four sections of corporate governance which are board independent, board size, the frequency of audit committee meeting and firm size. The population of this study is Top 30 firms in Malaysia that are public listed in Bursa Malaysia while for the period, this study focusses on year 2016 to 2019 which is 4 years. This study uses Return on Assets (ROA) to measure the firm effectiveness and efficiency. As for statistical analysis, this study uses E-View to run all the test such as Breusch-Godfrey Serial Correlation LM Test, Hausman Test, Ordinary Least Squared (OLS) method, Autocorrelation, Multicollinearity and Normality Test. According to the results of the analysis, board independent has positive insignificant relationship with firm performances while board size and firm performances have negative and insignificant relationship. As for the frequency of audit committee meeting and firm size, the results display that both variables have negatively significant relationship with the performances of the firm. Apart from that this study use two theory which are Prospect Theory and Agency Theory.

Nexus of Green Management, Green Marketing, Sustainability, and Financial Performance

2021 ◽  
pp. 353-373
Author(s):  
Adenike Oyelola Soogun
Keyword(s):  
Financial Performance ◽  
Environmental Sustainability ◽  
Financial Services ◽  
Marketing Strategies ◽  
Green Marketing ◽  
Green Management ◽  
Firm Financial Performance ◽  
Long Run ◽  
Holistic Practice ◽  
The Impact

Consumer and organizational awareness of environmental sustainability is ever increasing. In the era of global warming and climate change, organizations need to move away from traditional marketing strategies to green marketing strategies and green management to remain sustainable. The objectives of this chapter are to provide stakeholders with the overview and importance of green marketing, establish the link between green marketing mix and strategic green marketing, and reveal what organizations should focus on in developing green management to remain competitive and profitable. Green marketing strategies activities for financial services were highlighted, and lastly, the authors examined the impact of green management on firm financial performance. The chapter offers a holistic practice and recommendation of going green for both financial services and other businesses. Practical implications for managers were pointed out through commitment to green marketing and management to yield positive outcomes on firm financial performance in the long run.

Role of Corporate Governance in Shareholders Value Creation

2017 ◽  
Vol 8 (2) ◽  
pp. 70-82
Author(s):  
Muhammad Atif Khan ◽  
Muhammad Asif Khan ◽  
Idrees Liaqat
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Value Creation ◽  
Performance Optimization ◽  
Audit Committee ◽  
Positive Impact ◽  
Firm Financial Performance ◽  
Long Run ◽  
The Impact

The mechanism of governing corporate affairs in line with strategic goal of shareholders' value creation (SVC) has been pivotal debate among academic and institutional scholars over last few decades. Most of the studies in developing countries including Pakistan, have considered more conventional measures, like firm financial performance to examine the impact of corporate governance (CG). Theoretically, firm financial performance optimization has little role in maximizing SVC, that rarely streams to shareholders' exchequer. Therefore, the study is unique in its nature that identifies market capitalization, the most appropriate measure of value creation for shareholders over long run. The authors gathered panel and longitudinal data pertaining to PSX-100 listed firm over the period of 10 years ranging from 2006-15, which is analyzed using multivariate regression. Hausman and Likelihood tests guide the process of appropriate econometrics model selection. Empirical findings reveal that CG dimensions such as audit committee independence (ACI), managerial ownership (MO) and ownership concentration (OC) have positive impact on SVC, except board size (BS) and board independence (BI). The study offers valuable policy recommendations to make CG practices more effective, however, application of the model proposition at macro and micro level can be a substantial extension to literature incorporating some controlling dimensions.

scholarly journals Conceptual Model for Effective Board Composition in the Context of Emerging Markets

2015 ◽  
Vol 8 (1) ◽  
pp. 38
Author(s):  
Madi Almadi
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Management Practices ◽  
Social Economic ◽  
Board Composition ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

The impact of context has little or no consideration in the mainstream corporate governance literature. The purpose of this paper is to consider social, economic, and political elements of the emerging Saudi Arabian market when developing a multi-theoretical model about the relationship between board composition and financial performance.<strong> </strong>The paper attempts to conceptually inform the conversation about context with regard to board composition and firm financial performance in emerging markets. In particular, it discusses these theoretical feedback loops in conjunction with a proposed research agenda for the field.<strong> </strong>The paper proposes shifting the focus of corporate governance in emerging markets from relying on the predominant Western corporate governance theories to the alignment of those theories with considerations on emerging markets context. Such an approach involves significant implications for corporate governance theories and management practices. The paper describes the conditions in which certain formation of board of directors is composed in the Saudi Arabia may generate a competitive advantage. The consideration of emerging markets context can have implications for society as it may influence firms and governments to improve corporate governance standards and practices<strong> </strong>A literature gap in the corporate governance literature identified in this paper holds theoretical and practical implications. This research will enable comparative studies with other emerging markets, and will provide a conceptual benchmark for future corporate governance research.

scholarly journals Corporate governance structure and firm’ financial performance: Evidences from Egypt

2014 ◽  
Vol 10 (1) ◽  
pp. 49-59 ◽  
Author(s):  
Mohammed M. Soliman ◽  
Aiman A. Ragab ◽  
Mohammed B. Eldin
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Audit Quality ◽  
Positive Impact ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Ceo Duality ◽  
Firm Financial Performance ◽  
The Impact

Recent financial international scandals have generated hyped interest in the area of corporate governance as a mean to mitigate financial problems faced in developing nations. The purpose of this study is to examine the link between corporate governance structure and firm’ financial performance in Egypt. The data for analysis are gathered from manual review of the financial statements and websites of the thirty enterprises that make up the (EGX 30) covering the four years period 2007-2010. Results from the study indicate that board size; the presence of audit committee; and audit quality significantly have relationship with firm’ financial performance measured by ROA and ROE. The results also, indicate that board independence; and institutional ownership have no significant correlation with firm’ financial performance. For CEO duality, the results indicate that CEO duality has a positive impact upon companies’ financial performance measured by ROE, at the same time, is not correlated with the ROA measure of financial performance. This study is important because it offers evidence on the impact of corporate governance structure on firm financial performance. In addition, it provides useful information that is of great value to policy makers, academics and other stakeholders.

scholarly journals An empirical examination of the impact of corporate governance disclosure on financial performance

2015 ◽  
Vol 12 (3) ◽  
pp. 468-473
Author(s):  
Arunima Haldar ◽  
S.V.D. Nageswara Rao
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Relationship ◽  
Empirical Examination ◽  
Regulatory Changes ◽  
Stakeholder Interactions ◽  
The Impact ◽  
Clause 49 ◽  
Governance Disclosure ◽  
Over Time

The Indian corporate governance relationships have evolved over time as a result of both formal and informal stakeholder interactions, with changes to Clause 49 triggering a further evolutionary move in Indian corporate governance towards global benchmarks. This study seeks to gain insights into how the regulatory changes impacted corporate governance (CG) practices in India by measuring their effect on performance. We construct a "CG Compliance Index" using three important governance mechanisms for the year 2008. The analysis reveals that majority companies have complied by the regulations depicted by high CG compliance score and have a significant positive relationship between CG Compliance Index and the market measure of financial performance of companies

Corporate governance guidelines compliance and firm financial performance

2016 ◽  
Vol 31 (8/9) ◽  
pp. 891-914 ◽  
Author(s):  
Erick Rading Outa ◽  
Nelson M. Waweru
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Design Methodology ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the impact of compliance with corporate governance (CG) guidelines during the period 2002-2014 on firm financial performance and firm value of Kenyan-listed companies. Design/methodology/approach Using panel data of 520-firm year’s observations between 2005 and 2014, the authors test the hypothesis that compliance with CG guidelines issued in 2002 by Capital Markets Authority (CMA) improved firm financial performance and firm value. Findings Compliance with CG Index which is an aggregate of all the CG guidelines is positively and significantly related to firm performance and firm value. Board evaluation is also positively and significantly related to firm performance. The findings suggest that CG guidelines are associated with firm financial performance and firm value. Originality/value The authors provide evidence on the relationship between CG practices and firm financial performance and firm value in Kenya. Second, the authors provide evidence on board evaluation which has not been tested before in a “comply or explain” environment. Finally, they evaluate how CMA 2002 CG guidelines steered firm financial performance and firm value over its life cycle from 2002 to 2014. These results are important to CMA and other CG regulators and boards in their efforts to improve CG practices in the region.

scholarly journals The Interconnection between Decent Workplace and Firm Financial Performance through the Mediation of Environmental Sustainability: Lessons from an Emerging Economy

2021 ◽  
Vol 13 (8) ◽  
pp. 4570
Author(s):  
Muhammad Zahid ◽  
José Moleiro Martins ◽  
Haseeb Ur Rahman ◽  
Mário Nuno Mata ◽  
Syed Asim Shah ◽  
...  
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Environmental Sustainability ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Mediating Role ◽  
Firm Financial Performance ◽  
Development Goals ◽  
The Impact ◽  
The Relationship

This study aimed to investigate the impact of some important Sustainable Development Goals (SDGs), such as the decent workplace, climate change, and economic sustainability on firm financial performance (see Goals 8 and 13). By adopting an index from the previous literature, this study collected data from the annual and sustainability reports of the publicly listed companies of a developing country through content analysis from 2016 to 2018. The results revealed a significant increase in the level of compliance with workplace and environmental sustainability during the corresponding period. Furthermore, the estimations of ordinary least squares (OLS) and two-stage least squares (2SLS) panel data also unveiled a positive impact of workplace sustainability on the firm’s environmental and financial performance. Additionally, we noted that the findings were pronounced after addressing the problem of endogeneity. Moreover, the study also found a novel significant and positive mediating role of environmental sustainability in the relationship between workplace sustainability and the firm’s financial performance. This study has theoretical significance by proposing sustainability training and development as instrumental variables in the relationship of the workplace and environmental sustainability to firm financial performance. This study offers practical implications for regulatory bodies and business firms to integrate workplace and environmental sustainability practices into their routine operations for achieving sustainable industrialization.

scholarly journals A Relationship between Supply Chain Practices, Environmental Sustainability and Financial Performance: Evidence from Manufacturing Companies in Jordan

2021 ◽  
Vol 13 (4) ◽  
pp. 2152
Author(s):  
Luay Jum’a ◽  
Dominik Zimon ◽  
Muhammad Ikram
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Financial Performance ◽  
Environmental Sustainability ◽  
Management Practices ◽  
Manufacturing Companies ◽  
Chain Management ◽  
Firm Financial Performance ◽  
The Impact

Pursuing sustainable development creates competitiveness for manufacturing firms in the market, however the financial pressure of adopting sustainable environmental practices is still a major concern. Few studies were found on the inter-relationships between supply chain management practices, environmental sustainability, and firm financial performance. Moreover, manufacturing companies are compelled by different pressure groups across the globe to maintain environmental standards while conducting their business and supply chain activities. Therefore, the current study aims to investigate the impact of supply chain practices on environmental sustainability and financial performance. In addition, the role of environmental sustainability as a mediator between supply chain management and financial performance was analyzed to improve sustainable development. A well-designed questionnaire was administered to manufacturing companies in Jordan for data collection. A total of 376 responses were analyzed and the proposed hypotheses were tested by using Structural Equation Modelling (SEM) approach. The results reveal that environmental sustainability was tested significantly and influenced by supply chain practices such as relationship with customers, postponement, level of information sharing, and information quality. Whereas environmental sustainability had a significant direct effect on financial performance. Finally, environmental sustainability mediated the relationship of all supply chain management practices with financial performance except strategic supplier partnership dimension. The study provides policy guidelines to decision makers while simultaneously assists the managers to improve sustainability practices in manufacturing companies.

The Impact of Environmental Sustainability and Financial Resources Utilization on Firm Financial Performance: The Mediating Role of Leadership Styles

2021 ◽  
Vol 2 (2) ◽  
pp. 389-407
Author(s):  
Arsalan Tanveer ◽  
Muhammad Arshad Anwer ◽  
Muhammad Umar
Keyword(s):  
Financial Performance ◽  
Leadership Styles ◽  
Transactional Leadership ◽  
Leadership Style ◽  
Environmental Sustainability ◽  
Manufacturing Sector ◽  
Financial Resources ◽  
Firm Financial Performance ◽  
Transactional Leadership Style ◽  
The Impact

The paper aims to explore the impact of environmental sustainability and financial resources utilization on a firm’s financial performance through the mediation of leadership style in the manufacturing sector of Pakistan. First, a conceptual framework is devised among the relationship of exogenous and endogenous variables and the hypotheses are examined conferring to the relationships in the conceptual framework. Data is collected using a questionnaire from a sample of 47 registered manufacturing firms (Chemical, Pharmaceuticals). Then, the study is supported by neoclassical theory, resource-based theory, and financial slaked theory, multiple regression analyses are implemented with the data analyzed by the partial least square equation. The research results indicate that the utilization of financial resources has a positive relationship with firm financial performance. In the short run, the adoption of environmental sustainability is negatively related to the firm financial performance with a transactional leadership style, but in the long run, it will give positive impacts on the firm financial performance with transformational leadership. The comparative analysis of Leadership styles showed that transactional leadership style mediates better results than transformational leadership for the manufacturing sector of Pakistan. The study affords the modern ways, provides new insights to organizations, top management, and policymakers for the implementation of environmental sustainability and leadership skills for enhancing firm performance.

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