Special Issue "Harnessing Sustainability to Corporate Finance and Financial Institutions"

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: 30 September 2021.

Special Issue Editor

Prof. Dr. Haizhi Wang
E-Mail Website
Guest Editor
Stuart School of Business, Illinois Institute of Technology, Chicago, IL 60661, USA
Interests: corporate finance; financial institutions and markets; entrepreneurial finance; corporate social responsibility;

Special Issue Information

Dear Colleagues,

This special issue will comprise papers covering a wide range of topics related to sustainability, corporate finance and financial institutions. Sustainability has three critical pillars: economic, environmental, and social, which highlight the importance of “meeting the needs of the present without compromising the ability of the future generations to meet their needs” (the World Commission on Environment and Development, 1987). Therefore, the main goal of this special issue is to uncover decision-makings integrating these critical pillars in the context of corporate finance and financial institutions.

Although voluminous studies have been conducted to shed light on sustainability and its integration with business operations and decisions, many issues remain unclear and necessitate further exploration. To this end, this special issue calls for papers to make contribution along this line. A series of suggestive but not exhaustive topics are listed as follows. This special issue welcomes papers investigating social issues (e.g., sustainability, corporate social responsibility) in corporate finance, entrepreneurial finance and financial institutions. Studies focusing on the antecedents and consequences of CSR activities in the context of corporate finance and financial institutions will surely advance our understanding of sustainability issues. Papers selected for this special issues also address the methodological issues including measuring ESG/CSR ratings and relating these scores to business operations and decisions.  

Prof. Dr. Haizhi Wang
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 papers will be 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 1900 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

  • Decision-makings on sustainability strategies
  • Sustainable grwoth and firm performance
  • Social issues
  • CSR and financail institutions
  • Antecedents and consequences of CSR activities
  • ESG/CSR ratings

Published Papers (8 papers)

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Research

Article
Access to Digital Financial Services and Green Technology Advances: Regional Evidence from China
Sustainability 2021, 13(9), 4927; https://doi.org/10.3390/su13094927 - 28 Apr 2021
Viewed by 423
Abstract
Using data of 265 Chinese cities from 2010 to 2017, we studied the impact of access to digital financial services on green technology advances in the context of regional competition. We found that access to digital financial services significantly promotes green technology advances [...] Read more.
Using data of 265 Chinese cities from 2010 to 2017, we studied the impact of access to digital financial services on green technology advances in the context of regional competition. We found that access to digital financial services significantly promotes green technology advances within the region but inhibits those in other regions. We also found that modest regional competition can promote green technology advances, whereas excessive competition impairs the positive relationship between access to digital financial services and green technology advances. We identified a significantly positive spatial spillover effect for green technology advances. Full article
Article
Social Trust and Green Technology Innovation: Evidence from Listed Firms in China
Sustainability 2021, 13(9), 4828; https://doi.org/10.3390/su13094828 - 25 Apr 2021
Viewed by 548
Abstract
Green Technology innovation intends to enable the advancement of technologies toward the goals of human health, natural resource sustainability and social equity. Green technology innovation has become an important driving force for the sustainable growth of the global economy. In this study, building [...] Read more.
Green Technology innovation intends to enable the advancement of technologies toward the goals of human health, natural resource sustainability and social equity. Green technology innovation has become an important driving force for the sustainable growth of the global economy. In this study, building upon the theories on informal institutions, we empirically investigate the effects of social trust on green technology innovation. Using a sample of companies listed in A-share markets in China from 2012 to 2017, we find that social trust has a significant positive impact on the performance of green technology innovation. We employ an instrumental variable approach through two-stage-least square estimator, and report consistent results. Further heterogeneity analysis finds that with higher levels of policy uncertainty and lower levels of intellectual property rights protection, the effect of social trust on firms’ green technology innovation is more significant. Further, the effect of social trust on firms’ green technology of non-SOEs innovation is larger than SOEs. In addition, the positive effect of social trust on green technology innovation in firms is an effective supplement for formal systems to promote green technology innovation in said firms, which provides a new theoretical reference for promoting firms’ green technology innovation and achieving high-quality development. Full article
Article
The Impact of Marketization on Sustainable Economic Growth—Evidence from West China
Sustainability 2021, 13(7), 3745; https://doi.org/10.3390/su13073745 - 27 Mar 2021
Cited by 1 | Viewed by 469
Abstract
In this paper, we aim to study the relation between the marketization level in the western region of China and its economic development, and to provide policy guidance for the economic development of underdeveloped regions. Mixed methods data analysis was conducted using panel [...] Read more.
In this paper, we aim to study the relation between the marketization level in the western region of China and its economic development, and to provide policy guidance for the economic development of underdeveloped regions. Mixed methods data analysis was conducted using panel data from 82 prefecture-level cities in west China from 2003 to 2017. The overall regression results show that the level of marketization has a significant role in promoting economic growth. At the same time, regional heterogeneity analyses show that the sub-indicators of marketization have different degrees of influence on economic growth in the southwest and northwest of China, whereas the overall level indicator plays a significant role in both regions. In addition, the threshold panel model was used to test whether the influence of marketization on economic growth in the western region had interval characteristics. Through the self-sampling method, it was found that there are double thresholds. In terms of the gradual progress of the marketization level range, it shows a trend of first increasing, then decreasing and then increasing again. The results show that the level of marketization in west China has significantly promoted the economic development of the western region. Additionally, the impact of marketization on economic development in relatively backward regions is gradually increasing and surpassing that of relatively developed regions. Underdeveloped areas in west China can stimulate their advantages by continuously promoting the construction of marketization and improving the level of economic organization, so as to gradually narrow the development gap between regions. Full article
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Article
The Value of CSR in Acquisitions: Evidence from China
Sustainability 2021, 13(7), 3721; https://doi.org/10.3390/su13073721 - 26 Mar 2021
Cited by 2 | Viewed by 590
Abstract
In this paper, we aim to test whether and how corporate social responsibility (CSR) is valued in merger and acquisition (M&A) transactions. Employing multiple regression and logistic regression methods to examine the CSR in China’s domestic M&A market from 2007 to 2018, we [...] Read more.
In this paper, we aim to test whether and how corporate social responsibility (CSR) is valued in merger and acquisition (M&A) transactions. Employing multiple regression and logistic regression methods to examine the CSR in China’s domestic M&A market from 2007 to 2018, we reveal the following: (i) acquisition targets with higher social performance can attain higher acquisition valuation, especially when the acquirers are also socially responsible; (ii) high-CSR acquirers are inclined to choose equity payments, while high-CSR acquisition targets prefer to be paid in cash; (iii) high CSR performance boosts M&A success rate. The findings are robust, due to adopting two-stage least squares method to tackle endogeneity, substituting variable measures and data sources, and winsorizing variables at high levels to eliminate outliers. The value of CSR in M&As possibly results from the role of CSR in reducing information frictions, agency concerns, and corporate risks and is primarily associated with activities which are friendly to suppliers, customers, shareholders, public welfare, and natural environment, as well as being higher in developed regions and irrelevant to corporate ownership and nature. The study is of vital significance to the valuation and decision making in M&A deals. Full article
Article
Executive Gender and Firm Environmental Management: Evidence from CFO Transitions
Sustainability 2021, 13(7), 3653; https://doi.org/10.3390/su13073653 - 25 Mar 2021
Viewed by 414
Abstract
We investigate whether female executives influence corporate environmental management (green management). Based on a difference-in-difference approach, our study provides evidence that female CFOs conduct more environmentally responsible activities, and the effects are more prominent when firms are of high risks. Female CFOs are [...] Read more.
We investigate whether female executives influence corporate environmental management (green management). Based on a difference-in-difference approach, our study provides evidence that female CFOs conduct more environmentally responsible activities, and the effects are more prominent when firms are of high risks. Female CFOs are more likely to involve in environmental management voluntarily. Further, environmental management improves firm performance such as debt cost saving. This research advances the gender diversity literature and suggests that female executives play an important role in corporate decisions and firm performance. Full article
Article
Do Affiliated Bankers on Board Enhance Corporate Social Responsibility? US Evidence
Sustainability 2021, 13(6), 3250; https://doi.org/10.3390/su13063250 - 16 Mar 2021
Viewed by 451
Abstract
In this study, we examine whether and to what extent affiliated bankers on board may affect firms’ corporate social performance. Using a propensity score-matched sample from 2002 to 2016, we find that board directors from affiliated banks exert significantly positive influence on firms’ [...] Read more.
In this study, we examine whether and to what extent affiliated bankers on board may affect firms’ corporate social performance. Using a propensity score-matched sample from 2002 to 2016, we find that board directors from affiliated banks exert significantly positive influence on firms’ corporate social performance. Furthermore, board of directors from affiliated banks are negatively associated with firm investments in corporate social responsibility (CSR) activities when firms experience financial distress. Finally, we find that the effect of affiliated bankers on board on firms’ CSR performance depends on the affiliated banks’ CSR orientation, as affiliated banker directors from banks with higher CSR orientation have a stronger influence on firms’ investments in CSR activities. The results suggest that improving firm’s CSR performance is consistent with the affiliated banks’ interests. Full article
Article
Business Friendliness: A Double-Edged Sword
Sustainability 2021, 13(4), 1819; https://doi.org/10.3390/su13041819 - 08 Feb 2021
Viewed by 474
Abstract
In this paper, we test the hypothesis that business-friendly local-government policies combined with weak legal institutions lead to lower economic welfare in the form of greater fraud activity. Using data of almost 3000 failed peer-to-peer (P2P) lending platforms in China, labeled as “runaways”, [...] Read more.
In this paper, we test the hypothesis that business-friendly local-government policies combined with weak legal institutions lead to lower economic welfare in the form of greater fraud activity. Using data of almost 3000 failed peer-to-peer (P2P) lending platforms in China, labeled as “runaways”, we find that they are more prevalent in provinces with business-friendly policies with weak law-enforcement regimes. Full article
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Article
Employment Protection and Banking Power: Evidence from Adoption of Wrongful Discharge Laws
Sustainability 2021, 13(4), 1635; https://doi.org/10.3390/su13041635 - 03 Feb 2021
Viewed by 567
Abstract
Human capital and labor costs are crucial for the sustainable growth of organizations, and take a vital role in affecting bank efficiency and banking power. This research empirically investigates whether labor employment protection affects banking power. The analysis exploits the staggered adoption of [...] Read more.
Human capital and labor costs are crucial for the sustainable growth of organizations, and take a vital role in affecting bank efficiency and banking power. This research empirically investigates whether labor employment protection affects banking power. The analysis exploits the staggered adoption of Wrongful Discharge Laws (WDLs) as a quasi-exogenous shock to employment protection. A Difference-In-Difference research design is implemented to study the impacts of WDLs on banking power, and the main results show that there exists a decline of banking power for commercial banks headquartered in states that adopt employment protection. This study further tests the main mechanism through which WDLs affect banking power and finds that the impaired banking power is primarily due to cost inefficiency but not profit inefficiency. Moreover, the adoption of wrongful discharge laws increases commercial banks’ labor costs and induces bank risk-taking. Full article
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