scholarly journals Corporate Environmental Social Governance and Financial Performance: A Cross-sector Risk Analysis in Malaysia

2021 ◽  
Vol 11 (12) ◽  
Author(s):  
Nur Syuhada Jasni ◽  
Haslinda Yusoff
Keyword(s):  
Risk Analysis ◽  
Financial Performance ◽  
Social Governance

scholarly journals CSR Committees and Their Effect on ESG Performance in UK, France, Germany, and Spain

2019 ◽  
Vol 11 (18) ◽  
pp. 5077 ◽  
Author(s):  
Elisa Baraibar-Diez ◽  
María D. Odriozola
Keyword(s):  
Financial Performance ◽  
Reporting Quality ◽  
Panel Data Models ◽  
Listed Firms ◽  
Independent Variables ◽  
Social Governance ◽  
Multidisciplinary Nature ◽  
Governance Models ◽  
The Uk ◽  
Corporate Social

The multidisciplinary nature of a corporate social responsibility (CSR) committee reflects the commitment as well as the expectations and demands of diverse stakeholders. So far, CSR committees have been mainly considered as variables of control in larger corporate governance models and independent variables that determine CSR or environmental, social, and governance (ESG) disclosure and its reporting quality. However, the effect on corporate performance has been biased to financial performance, so the potential of the analysis of the effect it may have on different facets of non-financial performance has not been exploited. Which it should, since it can be a fundamental tool to achieve sustainability. The objective of this contribution is to test whether companies with a CSR committee not only leads to higher economic scores, but also to higher ESG (environmental, social, governance) scores. To do this, we used regression panel data models in 197 listed firms in Spain, France, Germany, and the UK during the period 2005–2015 including the perspective of European organizations and completing the extant studies in US-based samples. Our results showed that 90% of companies in the sample had a CSR committee in 2014, and that those companies had significantly different ESG scores than those without a CSR committee. Having a CSR committee also triggered better non-financial performance when considering the four scores and the four countries independently (except for the economic scores in Spain). These results have great implications for practitioners, reflecting the importance of promoting these tools in an organization to enhance non-financial performance and sustainability.

The financial aspects of the Corporate Responsibility Index in Egypt

2016 ◽  
Vol 43 (3) ◽  
pp. 284-307 ◽  
Author(s):  
Tarek Eldomiaty ◽  
Ahmad Soliman ◽  
Ahmed Fikri ◽  
Marwa Anis
Keyword(s):  
Financial Performance ◽  
Corporate Responsibility ◽  
Market Mechanism ◽  
Least Square ◽  
Financial Ratios ◽  
Business Practices ◽  
Bottom Line ◽  
Content Type ◽  
Social Governance ◽  
Corporate Social

Purpose – The purpose of this paper is to examine the financial aspects of high vs low-ranked firms in the Corporate Responsibility Index in Egypt, and to construct a Z-score model to discriminate between high- and low-ranked firms in the Corporate Responsibility Index. Design/methodology/approach – This study empirically examines a comprehensive list of financial ratios for 24 firms listed in EGX30 for four fiscal years, 2007-2010. The authors calculate 90 financial ratios to provide better insights and evaluation of the firms’ financial performance. The ordinary least square regression method and discriminant analysis are utilized to explain differences between the low- and high-ranked firms regarding their corporate social governance index. Findings – The results show that corporate governance and corporate social responsibility (CSR) are positively related to the firms’ financial performance in terms of sales turnover and customer loyalty. This suggests that in the long run, the market mechanism should be able to provide additional resources to those companies that are better at maximizing a widely defined bottom line of their social governance. The results also show that highly ranked firms are characterized financially by: strong bargaining power with suppliers; financing growth in fixed assets using debt mainly. Originality/value – The study contributes to the literature in terms of providing practical insights on the financial strategies that help support effective CG and CSR in Egypt. In addition, this study offers a unique quantitative attempt to measure and examine the benefits of incorporation of socioeconomics into business practices.

scholarly journals Why do Islamic Banks Concentrating Finance in Murabaha Mode? Performance and Risk Analysis (Sudan: 1997-2018)

2020 ◽  
Vol 13 (7) ◽  
pp. 208
Author(s):  
Omer Allagabo Omer Mustafa
Keyword(s):  
Risk Analysis ◽  
Credit Risk ◽  
Financial Performance ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Islamic Banks ◽  
Return On Equity ◽  
Risk Return ◽  
Strong Negative Relationship

During 1997-2018, Islamic Banks (IBs) in Sudan provided finance by Murabaha mode to their clients with more than 45% on average. This position raises questions of why do IBs concentrating finance in Murabaha Mode rather than other modes? is this concentration implying risk and does it have influence on the financial performance of IBs? This study aimed to discusses the reasons and answer these questions. Nonperforming loan(NPL), Murabaha to gross finance, Musharaka to gross finance, Mudabaha to gross finance and Salam to gross finance were used to indicate the credit risk. Return on Equity (ROE) was used to indicate the financial performance of IBs. Ordinary least squares technique was employed to determine the trend of relations between the variables. The main results of the study show that there is an important positive relationship between the NPL and provision finance by both Murabaha and Mudaraba modes. Whereas were a negative with both Musharaka and Salam. Moreover, it’s found that there is strong negative relationship between NPL and ROE. The main reason for the expansion granting finance by Murabaha mode is that IBs are heavy rely on collaterals and in case of clients’ failure to pay, they sell collaterals to keep their financial performance safety. The study strongly recommends IBs importance of diversify the granting finance among Islamic modes of finance to avoiding the risk of concentration the finance by Murabaha mode. Furthermore, monetary authority in Sudan need to keep IBs aware with the risk associated with Islamic modes, especially Murabaha.

scholarly journals ANALISIS TINGKAT RISIKO PENYALURAN KREDIT USAHA RAKYAT (KUR) DALAM MENINGKATKAN KINERJA KEUANGAN PADA PT. BANK SULSELBAR CABANG GOWA

2012 ◽  
Vol 8 (2) ◽  
pp. 60-80
Author(s):  
Samsul Rizal ◽  
Nadwah Nadwah
Keyword(s):  
Data Collection ◽  
Risk Analysis ◽  
Credit Risk ◽  
Financial Performance ◽  
Quantitative Methods ◽  
Descriptive Analysis ◽  
Ratio Analysis ◽  
General Description ◽  
Credit Risk Analysis ◽  
Profitability Ratios

This study uses Descriptive analysis and Credit Risk analysis using quantitative methods. Used to determine the level of risk of Kedit KUR at PT. SulselBar Bank, Gowa Branch. Data in the form of credit collectability reports, and data obtained in writing in the form of a general description of the company, namely data collection through direct interviews in the credit section with the problems examined at PT. Bank of Sulselbar Branch of Gowa.The results of the study concluded that non-performing loans (NPL) at PT. Bank Sulselbar, Gowa branch is classified as medium in accordance with the provisions of Bank Indonesia (BI). In the analysis of financial performance using ratio analysis consisting of liquidity ratios, solvency ratios and profitability ratios. The results of the study concluded that those who experienced an increase were based on the percentage of the solvency and profitability ratios.

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