Financial Stability in Companies with High ESG Scores: Evidence from North America Using the Ohlson O-Score

The benefits and advantages of the incorporation of ESG (Environmental, Social, Governing)-related policies have been discussed extensively. However, research articles focus not only on the socioecological aspects of Corporate Social Responsibility (CSR) but also on the underlying effects on a corporation’s corporate financial performance (CFP). In this regard, the current study aims to analyze the impact of ESG parameters on corporations’ financial stability. A sample size of 691 companies in North American countries was investigated in order to test the hypothesis that ESG has an effect on the likelihood of a company going bankrupt using the Ohlson O-score. This is conducted using regression models and the Pearson correlation coefficient. Furthermore, a follow-up hypothesis on the relationship between firm size and ESG is also tested in order to evaluate a tendency of corporate growth through ESG-based sustainable development. The results of the study conclude that the governing pillar of ESG factors has the highest positive impact on corporations’ financial success. Furthermore, the analysis conducted in the study with its sample size confirms the hypothesis that larger firms tend to have higher ESG scores.

Elements of Commerce Shows Enterprise Development Innovation Efficient Auditing and the Way of the Future

Technological entrepreneurship helps create sustainable value, accelerate corporate growth and promote economic sustainability through the capitalization and commercialization of innovative new technologies. There are obstacles in conducting Business Model Innovation (BMI) as a reference form of technological entrepreneurship as a reference. This study aims to establish a business model for developing the economy with technological entrepreneurship innovation (BMIfTE). Readiness is one of the keys in carrying out a goal, because there are things that must be prepared, such as the topics discussed in papers related to previous researchers who have published the development of a BMIfTE. For this reason, the paper in this study discusses opportunities and risks, value transitions, economic development, strategies for companies, dynamic capabilities and stakeholders. The new proposal is a form of BMI reconstruction regarding the business model in function of technology to create new systems and methods to take advantage of existing business development opportunities to be able to compete and stand in the national market.

The Effects of Technology Innovation Activity on CSR: Emphasizing the Nonlinear and Heterogenous Effects

In this study, we systematically investigate several effects of technology innovation activity (TIA)—proxied by Korean listed corporations’ research and development investment—on the performance of corporate social responsibility (CSR) for sustainable corporate growth and value. We find that corporate TIA positively contributes to an increase in CSR performance. Furthermore, our quantile regression estimations point to a heterogeneous effect of TIA, with a significant positive impact on CSR performance at the middle and higher quantiles of the distribution of the dependent variable of CSR performance. Interestingly, we capture a U-shaped nonlinear effect of TIA on the CSR performance of Korean listed corporations. Our findings alert researchers and managers to the importance of a better understanding of the relationship between CSR and TIA for sustainable corporate growth and value.

Towards Micro-Level Green Growth: A Framework to Recognize Corporate Growth Status, Path and Adopt Eco-Innovations

Despite the substantial attention paid to green growth in recent years, how to achieve green growth is still underexamined because it is usually advocated as a political motto or development scheme at the macro level. This study aims to scrutinize the meanings of green growth, growth statuses, and growth paths at the corporate level. Meanwhile, eco-process, eco-product, and eco-system innovations were reviewed, and an adoption strategy that involves the concept of life cycle was put forward to support the choice of suitable eco-innovations and to realize micro-level green growth. Finally, 54 enterprises out of the top 500 enterprises in China were used for a multi-case study. The results demonstrate that the improvements in energy consumption were better than those of greenhouse gas (GHG) emissions in the sample enterprises. However, only five firms achieved continuous green growth. For the majority of the enterprises, their significant economic growth was not certainly related to evident drops in unit energy consumption and GHG emissions. In addition, four firms obtained continuous grey growth, and the enterprises in manufacturing sectors exhibited inferior eco-efficiency. Corporate growth statuses and paths should not only be determined by considering a single environmental or economic measure. Enterprises in manufacturing sectors must develop specific eco-innovations that can greatly enhance their environmental performance. This study adds to the literature by expounding micro-level green growth as well as its relation to eco-innovations. This study also offers a quantitative and integrated view to advance corporate eco-innovations and green development.

The Imagination Premium: An anticipative performance metric

Purpose The authors offer a new metric for assessing a company's potential for growth that CEO's and leadership teams can actively manage. Design/methodology/approach The Imagination Premium metric reflects the value of a company's equity, beyond what can be readily explained by its ability to throw off cash. Findings For a CEO, TIP provides support for an argument that investments in future growth are well warranted. Practical/implications A negative TIP signals that investors will not even pay for the capitalized value of current cash flow and this usually leads to activist investors, hostile acquisition threats and C-suite turnover. Originality/value The article shows executives how to drive the premium investors will pay for corporate growth initiatives. One of the first things strategists can do to manage their company's TIP is a portfolio analysis that looks at how uncertain each current investment is, and whether the whole portfolio is one growth investors will reward with an increased TIP.

How Venture Capital Influences High-tech Enterprises’ IPO: External Factors versus Internal Growth

There is huge potential for China to transform and upgrade its traditional manufacturing sector, and high-tech enterprises in manufacturing industries stand out. This study contributes to the literature on how venture capital affects technology-based Enterprises’ IPO by evaluating the characters between the two parties. According to the symmetric information theory, certification theory and enterprise property rights theory, the first round of risk financing enterprises from 2010 to 2019 is taken as a research sample to empirically analyze the impact of venture capital and corporate growth on firm listing events. The results show that the investment experience of venture capital institutions, when matched appropriately to firms’ specific growth, will facilitate and accelerate the IPO process. Thus the matching degree between the two are significantly positively related to the company's IPO. Under the premise of low growth of the company, venture capital has a significant impact on the listing of the company. As the growth of the company increases, the impact of venture capital on the listing of the company is gradually reduced. Venture capital institutions with overseas backgrounds are more inclined to promote the IPO of invested international companies. Finally, we discuss the implications based on the results of the empirical analysis, and make suggestions for venture capital institutions and companies.