sustainability-logo

Journal Browser

Journal Browser

Corporate Finance and Business Administration in Sustainability

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (20 April 2024) | Viewed by 35626

Special Issue Editor

Department of Finance, Western University, London, ON, Canada
Interests: empirical corporate finance; corporate governance; executive compensation; CSR
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Corporate finance is becoming central to business administration in sustainability. The corporate finance functions support every aspect of business policies, practices and decisions regarding sustainability and corporate social responsibility. An awareness and understanding of corporate finance and business administration in sustainability is essential to succeed as an executive. This Special Issue will focus on corporate finance, which either helps businesses succeed or fail.

In this Special Issue, original research articles and reviews on all areas of corporate finance are welcome. Research areas may include, but are not limited to, the following: financial structure, governance, compensation and incentive, payout, innovation, risk management, financial contracting, green finance and international finance.

I look forward to receiving your contributions.

Dr. Frank Li
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • corporate finance
  • business administration
  • capital structure
  • corporate governance
  • executive compensation
  • compensation incentives
  • risk management
  • green finance
  • CSR
  • ESG

Benefits of Publishing in a Special Issue

  • Ease of navigation: Grouping papers by topic helps scholars navigate broad scope journals more efficiently.
  • Greater discoverability: Special Issues support the reach and impact of scientific research. Articles in Special Issues are more discoverable and cited more frequently.
  • Expansion of research network: Special Issues facilitate connections among authors, fostering scientific collaborations.
  • External promotion: Articles in Special Issues are often promoted through the journal's social media, increasing their visibility.
  • e-Book format: Special Issues with more than 10 articles can be published as dedicated e-books, ensuring wide and rapid dissemination.

Further information on MDPI's Special Issue polices can be found here.

Published Papers (11 papers)

Order results
Result details
Select all
Export citation of selected articles as:

Research

Jump to: Review

17 pages, 536 KiB  
Article
Strategic Planning and Organizational Performance: An Empirical Study on the Manufacturing Sector
by Kawar Mohammed Mousa, Khairi Ali Auso Ali and Sabahat Gurler
Sustainability 2024, 16(15), 6690; https://doi.org/10.3390/su16156690 - 5 Aug 2024
Viewed by 2010
Abstract
In this research, the primary goal was to investigate the relationship between strategic planning and organizational performance in Iraq’s manufacturing context. This study’s primary data sources were 360 manager respondents. A structured questionnaire was used to collect primary data from manufacturing firms located [...] Read more.
In this research, the primary goal was to investigate the relationship between strategic planning and organizational performance in Iraq’s manufacturing context. This study’s primary data sources were 360 manager respondents. A structured questionnaire was used to collect primary data from manufacturing firms located throughout Iraq. To analyze the results, the researchers used descriptive statistics, correlation, and multiple regression analysis. SPSS version 16 software was used to conduct data analysis. The results reveal that the process of strategic planning has a beneficial effect on financial performance. Environmental scanning has a statistically significant positive effect on a company’s nonfinancial performance. Management participation and planning formality positively and statistically significantly affect a business’s nonfinancial performance at the 10 percent level. The domain of strategy and technique does not impact a company’s nonfinancial performance. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

25 pages, 291 KiB  
Article
Firms’ Capital Structure during Crises: Evidence from the United Kingdom
by Diana Alhajjeah and Mustafa Besim
Sustainability 2024, 16(13), 5469; https://doi.org/10.3390/su16135469 - 27 Jun 2024
Cited by 1 | Viewed by 1217
Abstract
This study was conducted using the dynamic panel two-stage least squares system generalized methods of moments (2SLS-system GMM) to examine how UK companies made capital structure decisions during the COVID-19 pandemic. Contrary to expectations, firms opted to reduce their debt exposure during the [...] Read more.
This study was conducted using the dynamic panel two-stage least squares system generalized methods of moments (2SLS-system GMM) to examine how UK companies made capital structure decisions during the COVID-19 pandemic. Contrary to expectations, firms opted to reduce their debt exposure during the pandemic. Tobin’s Q was the most significant determinant of capital structure, as it mitigated total debt by 0.25% during the pandemic. This result aligns with the pecking order theory, suggesting that firms prefer internal financing over debt. Simultaneously, combined scores (ESG) and the decomposed environment (E), social (S), and governance (G) scores individually and paired with the COVID-19 dummy negatively affected short-term debt by 0.012%, 0.015%, 0.0068%, and 0.00434%, respectively. This study’s results highlight the significance of firms adopting less debt-heavy policies during periods of heightened uncertainty to effectively manage financial risk. This result underscores the importance of prudent financial risk management strategies for navigating the challenges posed by sudden crises. Our findings suggest that a complex interplay of factors influences capital structure decisions during crises, with debt reduction and prudent risk management emerging as critical strategies. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
17 pages, 1095 KiB  
Article
Corporate Sustainability, Sustainable Governance, and Firm Value Efficiency: Evidence from Saudi Listed Companies
by Hind Alofaysan, Sami Jarboui and Jawaher Binsuwadan
Sustainability 2024, 16(13), 5436; https://doi.org/10.3390/su16135436 - 26 Jun 2024
Viewed by 1690
Abstract
This study aims to explore the synergy between corporate sustainability and corporate sustainable governance and its effect on a listed firm’s value efficiency. This research studies the interaction of these two critical dimensions of modern business, highlighting their combined effects on the value [...] Read more.
This study aims to explore the synergy between corporate sustainability and corporate sustainable governance and its effect on a listed firm’s value efficiency. This research studies the interaction of these two critical dimensions of modern business, highlighting their combined effects on the value of the firm. We analyze the effects of corporate sustainability and the interactions of sustainability proxy and corporate governance practices on the value of 45 Saudi listed companies measured by Tobin’s Q during the period 2014–2022 using the True Fixed Effect model. Our results reveal that the average firm value efficiency of listed Saudi firms over a 10-year period is 87%. Our findings reveal that the interaction of corporate sustainability proxy and size of the board, number of board meetings, and board independence improve corporate value efficiency, while the interaction between corporate sustainability and ownership concentration has a negative impact on corporate value efficiency. Our research results indicate that sustainability initiatives can yield favorable effects on a firm’s value efficiency. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

18 pages, 419 KiB  
Article
The Moderating Effect of the Business Group Affiliation on the Relationship between Debt and Earnings Management: Evidence from Borsa Istanbul
by Meltem Gürünlü
Sustainability 2024, 16(11), 4620; https://doi.org/10.3390/su16114620 - 29 May 2024
Viewed by 914
Abstract
Earnings quality is crucial to provide investors and lenders with accurate information about the economic health of the firm and to help them make the right decisions. This paper examines whether the pooling of financial resources and internal funds allocation in corporate groups [...] Read more.
Earnings quality is crucial to provide investors and lenders with accurate information about the economic health of the firm and to help them make the right decisions. This paper examines whether the pooling of financial resources and internal funds allocation in corporate groups has a positive effect on earnings quality through reduced earnings management practices in affiliated firms. It is hypothesized that the funding benefits of pooling financial resources in corporate groups allow affiliated firms to reduce solvency problems arising from higher leverage, which in turn reduces incentives for earnings management. The study is based on a balanced panel data set of 95 non-financial firms traded on Borsa Istanbul covering the period between 2015 and 2022 (8 years) with a total of 760 observations. Using management’s discretionary accruals as a proxy variable to measure management’s flexibility to engage in earnings management, this study finds that being affiliated to a business group reduces earnings management incentives in group affiliates when firm’s leverage increases. The business group’s support on the debt-leveraged firm alleviates the motivation for earnings management practices. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

25 pages, 2357 KiB  
Article
Effectiveness of Company Value Creation Based on Excess Market Value-Added Assessment
by Jarosław Kaczmarek
Sustainability 2024, 16(9), 3711; https://doi.org/10.3390/su16093711 - 29 Apr 2024
Cited by 1 | Viewed by 1485
Abstract
This article aims to assess the usefulness of excess market value added to equity as an external measure of company value creation from the perspective of meeting shareholder expectations. This measure compares the expected value as an increase in stock exchange capitalisation in [...] Read more.
This article aims to assess the usefulness of excess market value added to equity as an external measure of company value creation from the perspective of meeting shareholder expectations. This measure compares the expected value as an increase in stock exchange capitalisation in relation to return on equity, equivalent to its cost, decreased by this capital, in relation to the actually achieved level of capitalisation. This paper investigates relations with other external and internal measures. This research is based on measuring value creation in WIG30 Warsaw Stock Exchange companies in 2017–2023. The assessment of the research results was based on mathematical statistics tools, the density measure and the taxonomic measure of similarity. The study tested four hypotheses. The results of this research showed that the excess measure does not distort market information and can be used to assess the effectiveness of shareholder value creation, taking into account shareholder expectations. Secondly, the paper pointed to an unsatisfactory level of value creation in WSE WIG30 companies. The negative assessment of value creation management refers both to effectiveness and efficiency. Thirdly, shareholders continue to use classical financial measures despite the existence of a wide spectrum of value measures. Fourthly, the paper points to the lack of theoretical equality between the market value added (an external measure) and capitalised economic value added (an internal measure). The presented research contributes to unbiased assessments of whether or not shareholder value is simultaneously created and realised in increased share prices (capitalisation) to a higher degree than shareholder expectations. Up to now, no such research studies have been conducted for Polish and foreign capital markets. The research methodology has practical applications in expectations-based management. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

13 pages, 285 KiB  
Article
Determinants of the Capital Structure of the Oil and Gas Industry in Malaysia: The Moderating Role of Earnings Volatility
by Maran Marimuthu, Hana Halini Hamzah and Romana Bangash
Sustainability 2023, 15(24), 16568; https://doi.org/10.3390/su152416568 - 5 Dec 2023
Cited by 1 | Viewed by 1927
Abstract
This paper examines the relationship between firm-specific factors and the capital structure of the oil and gas (O&G) industry in Malaysia.. In addition, this paper adds to the literature by investigating the moderating effect of earnings volatility on the relationship between firm-specific factors [...] Read more.
This paper examines the relationship between firm-specific factors and the capital structure of the oil and gas (O&G) industry in Malaysia.. In addition, this paper adds to the literature by investigating the moderating effect of earnings volatility on the relationship between firm-specific factors and capital structure. Random effect models with cluster-robust standard errors were used to analyze this relationship. Using the secondary data from 30 O&G firms listed on the main market of Bursa Malaysia collected between 2010 and 2019 (10 years), the results show that profitability, asset tangibility, liquidity, and firm size significantly impact the capital structure of the O&G industry in Malaysia. However, growth opportunities, non-debt tax shields, and firm age had no significant impact. In addition to this, earnings volatility significantly moderated the relationship between asset tangibility and leverage. In short, when earnings volatility acts as a moderating variable, the relationship between asset tangibility, which is otherwise positive without moderation, turns negative. This study is useful for policymakers in the O&G industry in Malaysia and will help their managers to decide on capital structure for sustainable growth. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
16 pages, 690 KiB  
Article
Examining the Sustainability of Contributions of Competing Core Organizational Capabilities in Response to Systemic Economic Crises
by Ali O. Jifri, Paul Drnevich, William Jackson and Ron Dulek
Sustainability 2023, 15(5), 4526; https://doi.org/10.3390/su15054526 - 3 Mar 2023
Cited by 1 | Viewed by 1414
Abstract
A dynamic capability view is used in this study to explain how organizational capabilities operate effectively and efficiently in stable environments and respond dynamically to changing conditions in their operating environments. Such capabilities enable organizations to both create and sustain their performance. When [...] Read more.
A dynamic capability view is used in this study to explain how organizational capabilities operate effectively and efficiently in stable environments and respond dynamically to changing conditions in their operating environments. Such capabilities enable organizations to both create and sustain their performance. When faced with a systemic change in the environment, such as a global economic crisis, organizational capabilities may no longer contribute effectively to sustain organizational performance or their survival. In this study, we examine the effectiveness and sustainability of organizational capabilities in response to a systemic economic crisis. We do so through examining these issues in a broad multiyear sample of U.S. credit unions through the global financial crisis. In this context, organizations utilized two types of competing capabilities: explorative capabilities to increase revenues and/or exploitative capabilities to reduce expenses. The effectiveness of these capabilities and the sustainability of the resulting performance implications of their combined deployment remains under-theorized and insufficiently examined, particularly under conditions of high economic uncertainty. We examine these issues using a sample of 1127 large U.S. credit unions collecting comparative data during a period of economic stability from 2001 to 2004 and during a period of economic instability from 2006 to 2009, before and after the 2008 global financial crisis. We perform multiple regression analysis to examine the contributions and sustainability of organizational capabilities to relative performance. Interestingly, we find that in stable times, the explorative capability to increase revenues appears to contribute more to performance, while in the crisis period, the exploitative capability to reduce expenses appears to contribute more to performance. Further, the combined effect of deploying both “competing” capabilities simultaneously is related to performance only when the environment is stable and can be detrimental during a crisis. The results suggest that using expense decreasing capabilities (but not revenue increasing capabilities or both combined) is better when facing an economic crisis. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

19 pages, 622 KiB  
Article
Managing Information Sensitivity: The Relationship between the Interbank Offered Rate and the Characteristics of Bank-Issued Wealth Management Products in China
by Gang Bai and Chunhui Chen
Sustainability 2023, 15(2), 1392; https://doi.org/10.3390/su15021392 - 11 Jan 2023
Viewed by 1811
Abstract
Unlike previous studies that focused on measures and changes in debts’ information sensitivity, this paper examines how banks in China manage the information sensitivity of wealth management products (WMPs), one of the most important assets in Chinese shadow banking. Employing the interbank offered [...] Read more.
Unlike previous studies that focused on measures and changes in debts’ information sensitivity, this paper examines how banks in China manage the information sensitivity of wealth management products (WMPs), one of the most important assets in Chinese shadow banking. Employing the interbank offered rate to proxy investors’ incentives for private information production, we find when the interbank offered rate rises for newly issued WMPs, banks shorten their maturity, provide them with more guarantees, and reduce the risk of their underlying assets. Moreover, these effects are more pronounced in small and medium-sized banks (SMBs) relative to the largest five state-owned (Big5) banks. Furthermore, we also find that banks reduce the number of WMPs issued to institutional investors when the interbank offered rate rises, and this effect exists in both Big5 banks and SMBs. Our findings suggest that banks adjust the characteristics of WMPs to maintain WMPs’ information insensitivity when investors’ incentives to produce private information increase. These results also indicate that there is less need for Big5 banks to adjust WMPs’ characteristics since individual investors consider WMPs issued by Big5 to be safer and thus to have less incentive to produce private information. However, institutional investors understand WMPs’ risks better and, therefore, all banks reduce the number of issues to them when the interbank rate rises. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

21 pages, 403 KiB  
Article
Human Resources, Investor Composition and Performance of Venture Funds: Focused on the Stakeholders of Venture Funds
by Sang-Jun Shin and Keun-Tae Cho
Sustainability 2022, 14(24), 16773; https://doi.org/10.3390/su142416773 - 14 Dec 2022
Viewed by 1387
Abstract
This study aims to understand the effect of the human resources and investor composition of venture funds on fund performances in Korea. It was conducted on 235 venture funds and revealed that the fund manager retention period, retention rate and investors’ number affected [...] Read more.
This study aims to understand the effect of the human resources and investor composition of venture funds on fund performances in Korea. It was conducted on 235 venture funds and revealed that the fund manager retention period, retention rate and investors’ number affected fund performance. Blind funds showed the same results with overall funds, whereas project funds, performance was affected only by the fund manager retention period. Funds operated by general partners, which manpower is not major shareholders, showed the same result as the overall ones. This study provides the basis for government planning venture policies and investors establishing funds’ evaluation criteria. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

Review

Jump to: Research

14 pages, 859 KiB  
Review
Sustainable Finance and ESG Importance: A Systematic Literature Review and Research Agenda
by Georgios Zairis, Panagiotis Liargovas and Nikolaos Apostolopoulos
Sustainability 2024, 16(7), 2878; https://doi.org/10.3390/su16072878 - 29 Mar 2024
Cited by 5 | Viewed by 14148
Abstract
Over the last decade, sustainable finance has appeared to be capturing a high level of interest as a crucial pillar of sustainable development. The process of taking environmental, social, and governance (ESG) considerations into account when making investment decisions in the financial sector [...] Read more.
Over the last decade, sustainable finance has appeared to be capturing a high level of interest as a crucial pillar of sustainable development. The process of taking environmental, social, and governance (ESG) considerations into account when making investment decisions in the financial sector is expected to play a key role in this framework, and although it has attracted the attention of many scholars and academics, a lack of understanding of the nature of the phenomenon remains. Therefore, on the basis of a systematic literature review of 80 studies, we examine, in detail, the subject areas and emphasize the main points in the existing literature. The findings reveal that there are four main thematic areas attracting research interest, as follows: (1) A shift in value creation; (2) green bonds; (3) ESG ratings and performance; and (4) sustainable finance, banking, and financial risks. Finally, this study outlines future research avenues in the field. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

42 pages, 1350 KiB  
Review
Understanding the Relevance of Sustainability in Mergers and Acquisitions—A Systematic Literature Review on Sustainability and Its Implications throughout Deal Stages
by Christoph Kayser and Henning Zülch
Sustainability 2024, 16(2), 613; https://doi.org/10.3390/su16020613 - 10 Jan 2024
Cited by 2 | Viewed by 5716
Abstract
The importance of transforming business models and activities toward a sustainable economy is more urgent than ever and manifests in the adoption of international agreements and regulatory initiatives. Company transactions, including mergers and acquisitions (M&A), need to pay attention to sustainability concepts and [...] Read more.
The importance of transforming business models and activities toward a sustainable economy is more urgent than ever and manifests in the adoption of international agreements and regulatory initiatives. Company transactions, including mergers and acquisitions (M&A), need to pay attention to sustainability concepts and their implications. Consequently, the current and traditional literature on M&A processes acknowledges the role of sustainability as a prerequisite for success in M&A operations. However, reviews of the relationship between sustainability and M&A from an integrative perspective that highlight the pre- and post-deal stages are limited. To bring further transparency to this context, we perform a systematic review of the academic literature on the relevance and implications of sustainability in M&A, focusing on archival studies. We present an overview of major sustainability influences at different stages of the M&A process, using the perspective of the acquirer as well as the target of sustainability. We observe that in all analyzed pre- and post-deal stages, sustainability is identified as having an impact or being impacted by M&A activities. Accordingly, practitioners’ strategic consideration of sustainability for deal origination and performance is required. Furthermore, we highlight several understudied factors and create a research agenda, as research findings are, to some extent, heterogeneous and limited. Full article
(This article belongs to the Special Issue Corporate Finance and Business Administration in Sustainability)
Show Figures

Figure 1

Back to TopTop