Special Issue "Sustainability in Asian Emerging Markets"

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

Deadline for manuscript submissions: closed (30 April 2020).

Special Issue Editors

Dr. Ninh Nguyen
Website
Guest Editor
Department of Economics, Finance and Marketing, La Trobe University, Bundoora 3086, Australia Business Sustainability Research Group, Thuongmai University, Hanoi, Vietnam
Interests: green marketing; environmentally sustainable behaviour; sustainable food consumption; sustainable development
Special Issues and Collections in MDPI journals
Prof. Dr. Lester Johnson
Website
Guest Editor
Department of Management and Marketing, Swinburne University of Technology, Hawthorn, Victoria 3122, Australia
Interests: sustainable tourism; consumer engagement; service innovation
Special Issues and Collections in MDPI journals

Special Issue Information

Dear Colleagues,

Most research into sustainability has been conducted in developed market economies, especially those of America and Europe. Hence, the knowledge about pro-environmental behaviour and sustainable development in emerging markets remain limited. These countries constitute most of the world’s people and land, and they are expected to continue to grow faster than the developed counterparts. Many multinational companies regard emerging markets as being key locations for future growth. Importantly, emerging and developing countries are the major contributors of climate change and air pollution owing to their rapid economic growth, large consumer base and unsustainable consumption. There is a common belief that consumers and companies in poorer countries (including emerging markets) care less about environmental quality. The environmental and ethical concerns have, however, increased significantly in emerging markets, especially those in Asia. Hence further research into sustainability in these countries is needed.

The Special Issue aims to extend current knowledge about social and environmental sustainability in Asian emerging markets. Conceptual and empirical papers are invited from scholars, marketers, managers and policymakers and dealing with various economic, business and management aspects of sustainability in the emerging context. The selected papers will contribute to the evolving literature, as well as provide new directions in research on sustainability, especially in the settings of developing and emerging market economies.

Dr. Ninh Nguyen
Prof. Dr. Lester Johnson
Guest Editors

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 1800 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

  • sustainable consumption
  • sustainable development
  • sustainable tourism
  • green purchase behaviour
  • sustainable financial behaviour
  • recycling and conservation behaviour
  • energy efficiency behaviour
  • healthy and sustainable eating/diet
  • consumer decision making towards organic food
  • consumer sustainable lifestyle
  • consumer and organisational attitudes towards pro-environmental behaviour
  • corporate social/environmental responsibility
  • corporate green strategies

Published Papers (27 papers)

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Research

Open AccessArticle
Are Corporate Environmental Responsibility Activities an Efficient Investment or an Agency Cost? Evidence from Korea
Sustainability 2020, 12(9), 3738; https://doi.org/10.3390/su12093738 - 05 May 2020
Abstract
External conditions such as capital market maturity, investor protection levels, and government control over individual firms vary among countries. We posit that such environmental differences could cause differences in corporate environmental responsibility (CER) activities between countries. However, previous studies have mainly focused on [...] Read more.
External conditions such as capital market maturity, investor protection levels, and government control over individual firms vary among countries. We posit that such environmental differences could cause differences in corporate environmental responsibility (CER) activities between countries. However, previous studies have mainly focused on developed countries, while studies conducted in emerging countries are limited. We examine the relationship between CER activities and investment inefficiency in firms listed on the Korea Exchange. Specifically, we analyze the incentive of managers’ ex-ante behavior on CERs and further analyze the relationship between these incentives and external evaluations. Using firm-year panel data, we conducted the pooled ordinary least squares (OLS) regression analysis and found the following results. First, the relationship between CERs and investment inefficiency is significantly positive, especially those based on managers’ incentives for overinvestments. Second, the positive relationship between CERs and investment inefficiency is prominent in the subsamples with large free cash flows or low asset efficiency. Third, active CERs reduced corporate value in the overinvestment subsample. Unlike existing literature that focuses on developed countries, our results imply that CERs may have negative effects due to agency problems in emerging countries with immature capital markets. From this arises the academic implication that the evaluation of CERs should be changed according to different capital market environments. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
Open AccessArticle
Inter-Provincial Market Fragmentation and Regional Economic Development in China
Sustainability 2020, 12(8), 3399; https://doi.org/10.3390/su12083399 - 22 Apr 2020
Abstract
This paper measures inter-provincial market fragmentation by adopting an adjusted priced-based approach from the Law of One Price using a three-dimensional panel of annual price on eight goods across 31 provinces in Mainland China during 1999–2015. By using the system Generalized Moment Estimation [...] Read more.
This paper measures inter-provincial market fragmentation by adopting an adjusted priced-based approach from the Law of One Price using a three-dimensional panel of annual price on eight goods across 31 provinces in Mainland China during 1999–2015. By using the system Generalized Moment Estimation (GMM) approach, we analyze the non-linear effect of inter-provincial market fragmentation on regional economic development and its differences in various regions and periods. By constructing a Cross-Terms Model, we analyze the influence of various motivations of provincial governments on the non-linear relationship between inter-provincial market fragmentation and regional economic development. The results show that (1) Chinese domestic market fragmentation appears to have caused a fluctuating decline during 1999–2015. (2) The inter-provincial market fragmentation imposes an inverted U-shaped influence on regional economic development. It is necessary to maintain moderate market fragmentation for the promotion of regional economic development. (3) It is beneficial to maintain a lower degree of market fragmentation as time goes on. It is necessary to maintain a lower degree of market fragmentation in Eastern and Central China compared with Western China. (4) Compared with Social Stability and Official Positions Promotion, the motivation of Fiscal Revenue Enhancement requires the maintenance of a lower degree of inter-provincial market fragmentation for regional economic development. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Does Internal Control Contribute to a Firm’s Green Information Disclosure? Evidence from China
Sustainability 2020, 12(8), 3197; https://doi.org/10.3390/su12083197 - 15 Apr 2020
Abstract
The literature shows that a firm’s environmental information disclosure is affected by internal and external factors. However, it is unclear whether internal control positively impacts a firm’s green information disclosure. We collected data from the period 2010–2016 from either environmental reports or the [...] Read more.
The literature shows that a firm’s environmental information disclosure is affected by internal and external factors. However, it is unclear whether internal control positively impacts a firm’s green information disclosure. We collected data from the period 2010–2016 from either environmental reports or the environmental section of social responsibility reports of A-share listed companies in the heaviest polluting industries of the Chinese capital market, 1603 companies in total, and established an evaluation index for measuring firm greenness. Our research indicates that the level of internal control was positively correlated to the firm’s greenness level, and deficiencies in internal control were negatively correlated to the firm’s greenness level, indicating that high-quality internal control improves company green information disclosure. Pertaining to property rights, the internal control of state-owned enterprises had a significant effect on improving the level of environmental information disclosure. Among five elements of internal control, the internal environment, information and communication elements had a significant positive impact on firm greenness. Compared with samples with uncorrected major deficiencies in internal control, rectified companies’ environmental information disclosure was greener. These findings provide empirical evidence for a comprehensive understanding of the non-financial reporting goals of firm internal control, and will become a useful reference for firm green governance decision-making. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
Open AccessArticle
Does the Nation Innovation System in China Support the Sustainability of Small and Medium Enterprises (SMEs) Innovation?
Sustainability 2020, 12(6), 2562; https://doi.org/10.3390/su12062562 - 24 Mar 2020
Abstract
To maintain sustainable economic growth, China has created a national innovation system (NIS) and strengthened the central status of firms. Our data show that the effect of turnover growth in small and medium-sized enterprises (SMEs) on China’s aggregate Gross Domestic Product (GDP)growth is [...] Read more.
To maintain sustainable economic growth, China has created a national innovation system (NIS) and strengthened the central status of firms. Our data show that the effect of turnover growth in small and medium-sized enterprises (SMEs) on China’s aggregate Gross Domestic Product (GDP)growth is significant, but the status of SMEs in the NIS and related policies is not significant. To determine whether there is a correspondence between the sustainability of innovation in SMEs and the support of China’s NIS, we developed a framework for China’s innovation policy under the NIS framework, taking into account its transition characteristics, to examine the texts of SME innovation policies and reveal the sustainability of SMEs’ innovation. The relevant national government policy texts were collected from the yearbooks of Chinese SMEs between 1999 and 2017 and government notices between 1994 and 2017. On this basis, we also compared with some other countries’ innovation systems. The findings indicate that China’s NIS pays little attention to the sustainability of SMEs’ innovation activities for two reasons. First, the scope of the NIS is very narrowly defined. Second, the top-down, government-oriented Research and Development (R&D) system that focuses on large state-owned firms leaves little room for innovation policies in SMEs. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Leveraged Trading, Irrational Sentiment and Sustainability in the Stock Market: Evidence from China
Sustainability 2020, 12(4), 1310; https://doi.org/10.3390/su12041310 - 11 Feb 2020
Cited by 1
Abstract
Leveraged trading exhibits the characteristics of “strong margin trading and weak short selling” in the Chinese stock market. On the basis of monthly data on leveraged trading in the Chinese stock market from January 2014 to December 2016, we aim to empirically examine [...] Read more.
Leveraged trading exhibits the characteristics of “strong margin trading and weak short selling” in the Chinese stock market. On the basis of monthly data on leveraged trading in the Chinese stock market from January 2014 to December 2016, we aim to empirically examine the relationship between leveraged trading and investor sentiment, and analyze the characteristics of investor sentiment contained in the leverage ratio. The results show that (1) as the leverage ratio increases, the pattern of investor trading changes from the positive feedback trading of “chasing up and down” to the negative feedback trading of “selling high and buying low”; (2) leveraged trading has the typical characteristics of irrational sentiment; (3) inverse arbitrage strategies based on leverage ratios is effective in one month in the Chinese market. The findings in this paper provide empirical support for clarifying the influence mechanism between leveraged trading and investor sentiment, and can serve as a useful reference for reducing the impact of leveraged trading on volatility and maintaining the sustainability of the stock market. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
What are Important Technologies for Sustainable Development in the Trucking Industries of Emerging Markets? Differences between Organizational and Individual Buyers
Sustainability 2020, 12(1), 224; https://doi.org/10.3390/su12010224 - 26 Dec 2019
Cited by 1
Abstract
This article examines perceived importance of sustainable technologies and how organizational buyers and individual buyers differ in their willingness to pay for sustainable technological innovations an emerging market. Extensive field research was conducted to develop the study measures. Using Weber’s step-by-step method of [...] Read more.
This article examines perceived importance of sustainable technologies and how organizational buyers and individual buyers differ in their willingness to pay for sustainable technological innovations an emerging market. Extensive field research was conducted to develop the study measures. Using Weber’s step-by-step method of coding, we selected 24 sustainable technologies that are representative of the technological preferences and demands of truck drivers in China. We also conducted pretests with trucking company executives to improve the final survey instrument. We collected data from 510 organizational buyers and 2680 individual buyers. Results show that organizational buyers and individual buyers have similar preferences for 15 of the 24 sustainable technologies. The individual buyers have a significantly higher preference than organizational buyers for sustainable technologies, such as comfort, image, and service attributes. However, the study findings suggest that organizational buyers have a greater preference in the total cost of ownership dimension. Through content analysis of survey responses in China, we identified the most influential and popular sustainable technology in the business-to-business trucking industry in emerging markets, such as China. Our research expands the application of sustainable buying behavior theory to the trucking industry in an emerging market. We suggest management and marketing strategies to sustainable development of trucking industry. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Open-End Funds for Sustainable Economic Growth in China: The Relationship between Load Fees, Performance, and Flows
Sustainability 2019, 11(22), 6514; https://doi.org/10.3390/su11226514 - 19 Nov 2019
Abstract
The financial market, including the fund market, has an increasingly important role in facilitating sustainable economic development. In this study, we examine whether investors react rationally to fund fees through the investigation of the impact of fee structures on investor behavior with open-end [...] Read more.
The financial market, including the fund market, has an increasingly important role in facilitating sustainable economic development. In this study, we examine whether investors react rationally to fund fees through the investigation of the impact of fee structures on investor behavior with open-end funds in China. We aim to determine whether performance influences the effect of the load fee on fund flows. Based on panel data that contained 240 open-end funds for the period of 2008 to 2017, we offer insight into the relationship between fee structure and the flow of open-end funds in China and find that investors react more sensitively to the load fee than operating expenses. Specifically, the coefficients of operating expenses were found to be insignificant in all regression analyses, while almost all the coefficients of load fees were statistically significant. In addition, our findings indicate that the load fee decreases net flow mainly through increasing redemption, and high load fees can make investors more rational to redeem funds with low performance. High load fees can influence investors to sell funds that perform worse in moderately performing funds, where a high load fee can increase investors’ rationality and motivate them to sell funds, resulting in the mitigation of the disposition effect. We also find that investors in larger funds and aggressive growth funds, as well as those who invest with institutional investors and higher liquidity, react more insensitively to load fees, which can be illustrated by the distraction effect. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Corporate Social Responsibility and Sustainability of Local Community: A Case Study of the Transnational Project in China-Pakistan Economic Corridor
Sustainability 2019, 11(22), 6456; https://doi.org/10.3390/su11226456 - 16 Nov 2019
Abstract
While achieving great benefits, the Belt and Road Initiative (BRI) has triggered potential problems between the transnational projects and local communities in the participant countries. However, there is still a knowledge gap on how corporate social responsibility (CSR) is adopted, and how CSR [...] Read more.
While achieving great benefits, the Belt and Road Initiative (BRI) has triggered potential problems between the transnational projects and local communities in the participant countries. However, there is still a knowledge gap on how corporate social responsibility (CSR) is adopted, and how CSR affects the local community. Based on a context of China-Pakistan Economic Corridor (CPEC), this research exploits a combination of qualitative and quantitative methods to fill the gap. It finds that the CSR activities in the CPEC project are initiated by the long-term CSR initiative. Organized by the professional CSR foundation in an autonomous environment, the panoramic CSR activities are governed in a discretionary way and focus exclusively on the sustainability of the local community. Education, health-care, environment, and employment improve greatly after the implementation of the CPEC project. Theoretically, this research not only provides new insights into CSR research by taking an under-studied context of CPEC into study, but also proposes a mechanism of how CSR leads to the sustainability of local community by building a CSR-sustainability framework. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Antecedents of Purchase Intention toward Organic Food in an Asian Emerging Market: A Study of Urban Vietnamese Consumers
Sustainability 2019, 11(17), 4773; https://doi.org/10.3390/su11174773 - 02 Sep 2019
Cited by 3
Abstract
This study aims to investigate some factors influencing purchase intention toward organic food among urban consumers in Vietnam, an Asian emerging economy. The extended Theory of Planned Behavior was used as theoretical framework for this study. In order to test the proposed model [...] Read more.
This study aims to investigate some factors influencing purchase intention toward organic food among urban consumers in Vietnam, an Asian emerging economy. The extended Theory of Planned Behavior was used as theoretical framework for this study. In order to test the proposed model and hypotheses, a survey was conducted on a sample including 572 consumers in Hanoi, the capital city of Vietnam. The findings of structural equation modeling indicated that modern self, traditional self, health consciousness, organic-label trust, and subjective norm were significant predictors of attitude toward buying organic food, while environmental concern was not significantly related to attitude. In addition, attitude, subjective norm, and perceived behavioral control toward organic food purchase were found to be positively related to purchase intention. The research findings were discussed and implications for marketers and policy makers were provided. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Debunking the Myth of Foreign Direct Investment toward Long-Term Sustainability of a Developing Country: A Transaction Cost Analysis Approach
Sustainability 2019, 11(17), 4569; https://doi.org/10.3390/su11174569 - 22 Aug 2019
Abstract
This study focuses on the relationship between foreign direct investment (FDI) and sustainability in a developing host country, i.e., Vietnam, using the transaction cost approach. Secondary panel data were obtained from 62 provinces in Vietnam for the period between the years of 2010 [...] Read more.
This study focuses on the relationship between foreign direct investment (FDI) and sustainability in a developing host country, i.e., Vietnam, using the transaction cost approach. Secondary panel data were obtained from 62 provinces in Vietnam for the period between the years of 2010 and 2016. The analysis of the data was performed using the fixed effects regression model, which yielded interesting and controversial findings. Essentially, it was demonstrated that the FDI made by enterprises and the subsequent employment that it generated had several positive and significant influences on the long-term sustainability of provinces in Vietnam. However, the downside was that the value of fixed assets and long-term investment of FDI projects in conjunction with the size of the provinces negatively influenced their long-term sustainability. The findings of this study have important academic and practical implications. We propose some policy changes that would considerably improve the efficacy and effectiveness of FDI. This, in turn, will certainly enhance the long-term sustainability of host countries, especially developing ones. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
The Deterrence Effect of a Penalty for Environmental Violation
Sustainability 2019, 11(15), 4226; https://doi.org/10.3390/su11154226 - 05 Aug 2019
Cited by 1
Abstract
The response to the penalty for an environmental violation on the firm level is a matter of reactive corporate environmental practices, about which the existence of a penalty is critical for environmental public policy. We propose that a penalty acts as a deterrence [...] Read more.
The response to the penalty for an environmental violation on the firm level is a matter of reactive corporate environmental practices, about which the existence of a penalty is critical for environmental public policy. We propose that a penalty acts as a deterrence signal to enhance the perceived threat of legal punishment and the peer effect serves as the path through which peer firms learn from target firms. Based on the peer effect among firms and the deterrence effect in criminal economics, we investigated whether and how the peer firm responds to the penalty for environmental violation of target firms in the same industrial sector. Using samples of Chinese listed firms from 2008 to 2015, this paper finds that the penalty for the target firms can increase the peer firms’ environmental investment, and compared to the sample with low-level environmental regulation, the increase in the sample with high-level environmental regulation is more significant. These findings suggest that a penalty for target firms has a deterrence effect on peer firms and the environmental regulation strengthens the above deterrence effect. This is expected to help both theorists and practitioners achieve a better understanding of the implementation of a penalty for an environmental violation. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Exploring the Proactivity Levels and Drivers of Environmental Strategies Adopted by Vietnamese Seafood Export Processing Firms: A Qualitative Approach
Sustainability 2019, 11(14), 3964; https://doi.org/10.3390/su11143964 - 22 Jul 2019
Abstract
Export processing firms from emerging markets often need to adjust their export strategies towards environmentally friendly directions to address strict regulatory requirements and increasingly environmental concerns among the public and consumers in advanced countries. This study aims to explore and evaluate different proactivity [...] Read more.
Export processing firms from emerging markets often need to adjust their export strategies towards environmentally friendly directions to address strict regulatory requirements and increasingly environmental concerns among the public and consumers in advanced countries. This study aims to explore and evaluate different proactivity levels and drivers of environmental strategies (ESs) adopted by Vietnamese seafood export processing firms. Data was obtained from two sources: Public archival data of 32 listed firms, and semi-structured interviews with 44 managers from seafood export processing firms. Content analysis revealed that reactive ESs were adopted the most by Vietnamese seafood export processing firms, followed by opportunistic ESs, focused ESs and proactive ES, respectively. The findings also demonstrated that both internal factors and external factors in home and host countries motivate the firms to pursue different ESs. This study sheds light on unexplored characteristics and drivers of ESs in Vietnam and it assists key stakeholders including export processing firms and policymakers in the adoption, development and promotion of ESs. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
The Relationship between Corporate Environmental Responsibility and Firm Performance: A Moderated Mediation Model of Strategic Similarity and Organization Slack
Sustainability 2019, 11(12), 3395; https://doi.org/10.3390/su11123395 - 20 Jun 2019
Cited by 1
Abstract
There has been growing interest among business managers and academics in corporate environmental responsibility (CER), which represents a company’s focus on its long-term sustainability and society. Past research, however, has reported inconsistent and mixed results with regard to the link between CER and [...] Read more.
There has been growing interest among business managers and academics in corporate environmental responsibility (CER), which represents a company’s focus on its long-term sustainability and society. Past research, however, has reported inconsistent and mixed results with regard to the link between CER and firm performance. This study, therefore, proposes and validates a moderated mediation model of strategic similarity and organizational slack to better explain the relationship between CER and firm performance. Data were obtained from 260 listed firms in China from 2015 to 2017, resulting in 780 firm-year observations. Multivariate data analysis indicates that strategic similarity mediates the relationship between CER and firm performance. Furthermore, organizational slack moderates the relationship between CER and strategic similarity and the indirect effect of CER on firm performance through strategic similarity. The findings of this study provide insights for business managers attempting to understand and enhance the quality of their decision making regarding CER. Importantly, business managers should engage in CER activity and pursue strategic similarity to deal with pressure from stakeholders while following the competitive speed of competitors in the marketplace. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Greenwash and Green Purchase Intention: The Mediating Role of Green Skepticism
Sustainability 2019, 11(9), 2653; https://doi.org/10.3390/su11092653 - 09 May 2019
Cited by 4
Abstract
Along with the acceleration of green marketing in recent years, greenwash has been utilized by firms to get ahead of their rivals. Underpinned by the cognition–affect–behavior (C-A-B) paradigm, this study examines a model linking greenwash and green skepticism with green purchase intentions. It [...] Read more.
Along with the acceleration of green marketing in recent years, greenwash has been utilized by firms to get ahead of their rivals. Underpinned by the cognition–affect–behavior (C-A-B) paradigm, this study examines a model linking greenwash and green skepticism with green purchase intentions. It also investigates the moderating role of information and knowledge on the relationship between greenwash and green purchase intentions. Data were obtained from 419 Vietnamese consumers who had been involved in purchasing green vegetables using an online survey. Multivariate data analysis demonstrated that greenwash was negatively associated with green purchase intentions and that green skepticism mediated this negative association. In addition, the moderating effect of information and knowledge was confirmed. These findings enrich the extant knowledge on the relationship between greenwash and green purchase intentions. They also have important implications for firms that aim to reduce consumers’ skepticism and increase their intentions to purchase green food. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Chinese Financial Market Investors Attitudes toward Corporate Social Responsibility: Evidence from Mergers and Acquisitions
Sustainability 2019, 11(9), 2615; https://doi.org/10.3390/su11092615 - 07 May 2019
Cited by 1
Abstract
As China’s economic development has shifted from quantitative growth to qualitative improvement, stakeholders have enforced stricter corporate social responsibility (CSR) requirements for listed companies. However, few studies have focused on companies and CSR in such developing economies. We used the CSR scoring system [...] Read more.
As China’s economic development has shifted from quantitative growth to qualitative improvement, stakeholders have enforced stricter corporate social responsibility (CSR) requirements for listed companies. However, few studies have focused on companies and CSR in such developing economies. We used the CSR scoring system from Hexun Finance’s website to group Chinese listed companies according to their CSR scores. By comparing the effects of merger and acquisition (M&A) announcements on different CSR scores, we found that, first, the average abnormal return (AAR) response time of the low-CSR acquirers group was eight trading days, much longer than that of the medium-CSR (three trading days) and the high-CSR group (four trading days). Second, from five trading days before, and 15 trading days after the announcement date, the cumulative AAR (CAAR) of the acquirers in the low-CSR group was 0.270, much higher than those in medium- and high-CSR groups. Third, after considering the CSR scores for the two years prior to the M&A and controlling for other factors affecting the M&A, the CSR performance of the above-mentioned M&As was still negatively correlated with the M&A announcement effect. This point to the need for further studying CSR and M&A announcement effects for Chinese companies. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
The Impact of Foreign Investors on the Stock Price of Korean Enterprises during the Global Financial Crisis
Sustainability 2019, 11(6), 1576; https://doi.org/10.3390/su11061576 - 15 Mar 2019
Cited by 1
Abstract
This paper investigates the impact and behavior of foreign equity investment on the price of the nine largest KOSPI (Korea Composite Stock Price Index) enterprises and Samsung Electronics preference stocks in terms of market capitalization during the global financial crisis (2 January 2007 [...] Read more.
This paper investigates the impact and behavior of foreign equity investment on the price of the nine largest KOSPI (Korea Composite Stock Price Index) enterprises and Samsung Electronics preference stocks in terms of market capitalization during the global financial crisis (2 January 2007 to 30 December 2008). The empirical results indicate that foreign investors show strong, positive feedback trading behavior with regard to the stock price of Samsung Electronics, which is the largest KOSPI enterprise in terms of market capitalization. We also found evidence that the behavior of foreign investors significantly increased volatility in the stock returns of the two largest Korean conglomerates (Samsung Electronics and Hyundai Motors), which account for approximately 25 percent of total KOSPI market capitalization. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
What Dimension of CSR Matters to Organizational Resilience? Evidence from China
Sustainability 2019, 11(6), 1561; https://doi.org/10.3390/su11061561 - 14 Mar 2019
Cited by 2
Abstract
Prior work on corporate social responsibility (CSR) has focused mainly on its effects on the short-term performance of firms from developed countries. In this article, we shed light on its effects on organizational resilience, which is defined as the firm’s ability to positively [...] Read more.
Prior work on corporate social responsibility (CSR) has focused mainly on its effects on the short-term performance of firms from developed countries. In this article, we shed light on its effects on organizational resilience, which is defined as the firm’s ability to positively cope with environmental turbulence, and operationalized by long-term, improved sales growth and financial volatility. In line with this operationalization, we adopt CSR’s performance-enhancing and performance-insuring mechanisms to disentangle the relationship between CSR and organizational resilience. Furthermore, we divide CSR into five dimensions, namely shareholder, employee, business, society and environment-related CSR, and respectively examine their impacts on organizational resilience. The empirical study on a large sample of public firms in China from 2010 to 2017 shows that CSR as a whole significantly increases the firms’ long-term growth and reduces their financial volatility. As for the five specific dimensions, they all have a significant negative effect on financial volatility, and the employee, business, environment-related CSR are positively associated with long-term growth. Yet, the empirical results did not indicate significant associations between shareholder and society-related CSR and firms’ long-term growth. This study first explores the impacts of CSR’s different dimensions on organizational resilience. Also, we contribute to enriching the literature on CSR by examining the long-term performance-insuring effect of CSR with a quantitative analysis of emerging markets. Finally, we discuss some important managerial implications, as well as promising directions for future research. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Effective Segmentation of Organic Food Consumers in Vietnam Using Food-Related Lifestyles
Sustainability 2019, 11(5), 1237; https://doi.org/10.3390/su11051237 - 26 Feb 2019
Cited by 12
Abstract
The consumer purchase of environmentally friendly products like organic food is essential to environmental sustainability. This study applies the unique food-related lifestyles (FRL) approach to segment organic food consumers in Vietnam, a country in which there is increasing concern about food safety and [...] Read more.
The consumer purchase of environmentally friendly products like organic food is essential to environmental sustainability. This study applies the unique food-related lifestyles (FRL) approach to segment organic food consumers in Vietnam, a country in which there is increasing concern about food safety and quality. The FRL model was intentionally selected because it enables better understanding of how consumers employ food and its culinary aspects to achieve certain values in their lives. Data were obtained from 203 organic food consumers, and a two-step cluster analysis established three identifiable market segments which we named “Conservatives”, “Trendsetters”, and “Unengaged”. The Conservatives were interested in the health aspects of food and preferred natural products. The Trendsetters were interested in healthy food, liked to cook, and held a positive attitude toward organic food and local food products. The Unengaged consumers were not concerned about food-related issues, and they reported the least consumption of organic food. The findings of this study have important academic and practical implications for marketers, policymakers, organizations dealing with food, and socio-environmental organizations that aim to promote organic food consumption. Importantly, marketing efforts should focus on enhancing consumers’ knowledge about organic food and their love of cooking, as well as ensuring adequate availability of organic food. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
Open AccessArticle
Does Public Infrastructure Breed Consumption Downgrade and Overcapacity in China? A DSGE Approach on Macroeconomic Effects
Sustainability 2019, 11(3), 831; https://doi.org/10.3390/su11030831 - 05 Feb 2019
Cited by 1
Abstract
As the most influential emerging and developing country in Asia, China has attached great importance to the construction of infrastructural facilities, laying stress on its pivotal role in sustainable growth. Recently, however, a pessimistic mood about the term “consumption downgrade” continues to emerge, [...] Read more.
As the most influential emerging and developing country in Asia, China has attached great importance to the construction of infrastructural facilities, laying stress on its pivotal role in sustainable growth. Recently, however, a pessimistic mood about the term “consumption downgrade” continues to emerge, ascribing the dip in people’s disposable income to real estate bubbles stemming from too much government infrastructure spending. This paper collects empirical evidence, develops a Dynamic Stochastic General Equilibrium (DSGE) framework, regards Productive Government Expenditure (PGE) as a critical endogenous variable, and investigates thoroughly its overall effects on key indicators concerning economic growth and sustainable development. Results show that household consumption indeed responds directly and negatively confronting a sudden increase of public infrastructure investment in China, yet aggregate output is instead boosted. On top of that, productive capacity does not present a supposed reduction, but a promotion under the PGE shock. These findings indicate that so-called “consumption downgrade” delivers the wrong message of weak productivity; capacity utilization is in essence improved by vigorous government support for infrastructure construction, which ultimately benefits continuously-stable social sustainability in the long term. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Environmental Consciousness and Green Customer Behavior: The Moderating Roles of Incentive Mechanisms
Sustainability 2019, 11(3), 819; https://doi.org/10.3390/su11030819 - 04 Feb 2019
Cited by 8
Abstract
Consumer awareness of environmental protection and energy conservation concepts has prompted businesses in the hotel industry to adopt green operations. Most studies of the hotel industry have discussed the behavioral intentions (BIs) of consumers based on the theory of planned behavior (TPB), but [...] Read more.
Consumer awareness of environmental protection and energy conservation concepts has prompted businesses in the hotel industry to adopt green operations. Most studies of the hotel industry have discussed the behavioral intentions (BIs) of consumers based on the theory of planned behavior (TPB), but they have not considered emotional and motivational factors. The present study incorporated two incentive mechanisms and the anticipated positive and negative emotions of consumers into the TPB to explore the relationship between BIs and green hotel development. Structural equation modeling was applied to test the research hypotheses. The results indicate that (1) a positive correlation exists between environmental attitude, subjective norms, perceived behavioral control (PBC), positive anticipated emotion, and desire intention (DI), and a negative correlation exists between negative anticipated emotions and DI; (2) a positive correlation exists between PBC, DI, and BI; and (3) an incentive mechanism has a moderating effect on the relationship between DI and BI. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
CSR and Firm Value: Evidence from China
Sustainability 2018, 10(12), 4597; https://doi.org/10.3390/su10124597 - 05 Dec 2018
Cited by 5
Abstract
This study attempts to investigate the influence of corporate social responsibility (CSR) on firm value. Drawing upon stakeholder theory and a resource-based view, we argue that corporate social responsibility is expected to positively affect firm value because it helps firms gain positive stakeholder [...] Read more.
This study attempts to investigate the influence of corporate social responsibility (CSR) on firm value. Drawing upon stakeholder theory and a resource-based view, we argue that corporate social responsibility is expected to positively affect firm value because it helps firms gain positive stakeholder responses. Based on longitudinal data of Chinese manufacturing firms listed at Shanghai and Shenzhen Stock Exchange between 2010 and 2015, we use multiple linear regression to find that corporate social responsibility has a positive relationship with firm value and that the relationship between CSR and firm value is weakened for firms with higher advertising intensity, as CSR by these firms gains negative stakeholder responses. State-owned firms were shown to benefit more from CSR, as CSR by these firms gains positive stakeholder responses for such firms. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Sustainable Entrepreneurship Team Scale Development: A Complex Systems Perspective
Sustainability 2018, 10(11), 4199; https://doi.org/10.3390/su10114199 - 14 Nov 2018
Cited by 5
Abstract
This paper primarily focuses on two questions: (1) “How is a sustainable entrepreneurship team (SET) formed?”; and (2) “What factors contribute to effective SET?”. Based on the model of Baron and Henry (2011), we adopt a process view of SET development and propose [...] Read more.
This paper primarily focuses on two questions: (1) “How is a sustainable entrepreneurship team (SET) formed?”; and (2) “What factors contribute to effective SET?”. Based on the model of Baron and Henry (2011), we adopt a process view of SET development and propose a conceptual model of a SET work that includes four key elements: (1) Sustainable entrepreneurial motivation; (2) sustainable entrepreneurial opportunity recognition; (3) knowledge resources acquirement; and (4) sustainable entrepreneurial outcome. Furthermore, based on complex systems theory, we elaborate on how individual entrepreneurs form a SET. We also develop a SET scale and provide some initial empirical support for our conceptual model. Finally, based on our qualitative and quantitative results, we offer suggestions for Research Question 2. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Institutional Quality and Sustainable Development of Industries’ Exports: Evidence from China
Sustainability 2018, 10(11), 4173; https://doi.org/10.3390/su10114173 - 13 Nov 2018
Cited by 2
Abstract
The knowledge about the relations between domestic institutional quality and the sustainable development of exports in emerging markets remains limited, since most research into the relations between the institutional environment and the sustainable development of exports has been conducted in developed market economies, [...] Read more.
The knowledge about the relations between domestic institutional quality and the sustainable development of exports in emerging markets remains limited, since most research into the relations between the institutional environment and the sustainable development of exports has been conducted in developed market economies, especially in those of North America and Europe. With dynamic changes in the institutional environment of emerging countries over the years, this paper provides a novel perspective for investigating the relations above. This is the first paper to investigate the impact of institutional quality on the sustainable development of industries’ exports in emerging countries from a comprehensive perspective of multiple institutional environments and multi-dimensional industries’ heterogeneity. On the basis of defining institutional quality and industry heterogeneity, this paper explores the underlying mechanisms of institutional quality affecting sustainable development of industries’ exports and conducts empirical analyses by using the data from China’s 20 industries’ exports to 117 countries for the period of 1996–2011. The results show that: (a) Industries with higher degrees of financial dependence or higher product technical complexities have export comparative advantages in better financial environments; (b) Industries with higher research and development (R&D) intensity or a higher concentration of intermediate inputs have export comparative advantages in better legal environments; (c) The differences in the level of financial development or in the efficiency of legal system would influence the effects of interactions between institutional quality and industry heterogeneity on the sustainable development of industries’ exports. The present paper provides new evidence that institutional quality does promote the sustainable development of industries’ exports in emerging countries. These results indicate that exports of heterogeneous industries in emerging economies are an adaptive response to the specific institutional environment, as well as a continuous release of institutional dividends with the improvement of the institutional environment. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
What Is the Focus of Structural Reform in China?—Comparison of the Factor Misallocation Degree within the Manufacturing Industry with a Unified Model
Sustainability 2018, 10(11), 4051; https://doi.org/10.3390/su10114051 - 05 Nov 2018
Cited by 4
Abstract
The misallocation of production factors, with structural misallocation as an important aspect, is a key instigator of low total factor productivity (TFP) growth rate in China, but one important question is which structural misallocation of what factor is more serious in China. Using [...] Read more.
The misallocation of production factors, with structural misallocation as an important aspect, is a key instigator of low total factor productivity (TFP) growth rate in China, but one important question is which structural misallocation of what factor is more serious in China. Using China’s manufacturing industrial enterprise data from 1998 to 2013, we calculated and compared the factors misallocation degree among industries, ownerships and regions. The results indicated that, the misallocation among industries was most serious, which led to a TFP loss of 8.12% annually. The misallocation among ownerships ranked second, which led to a TFP loss of 5.49%. The least degree of the misallocation recorded among provinces led to TFP loss of 3.05%. By using the relative severity index, the rank is the same. As to the capital, the misallocation among ownerships was most serious, which led to TFP loss of 4.62%. But as to the labor, the misallocation among industries was most serious, which led to TFP loss of 4.58%. Moreover, the misallocation among ownerships alleviated rapidly from 1998 to 2007, while alleviated slower among industries and regions. However, from 2008 to 2013, all three types of structural misallocation have become worse, especially in labor. These conclusions are important to identify the focus of structural reform in China. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Role of Domestic Financial Reforms and Internationalization of Non-Financial Transnational Firms: Evidence from the Chinese Market
Sustainability 2018, 10(11), 3847; https://doi.org/10.3390/su10113847 - 24 Oct 2018
Cited by 3
Abstract
The successful internationalization process of Chinese firms which enhances the sustainability of the Chinese economy receives massive research attention. Studies emphasize that firm’s motives and institutional voids play a pivotal role in getting benefits from the internationalization process, but the factors that initiated [...] Read more.
The successful internationalization process of Chinese firms which enhances the sustainability of the Chinese economy receives massive research attention. Studies emphasize that firm’s motives and institutional voids play a pivotal role in getting benefits from the internationalization process, but the factors that initiated this process have been overlooked. The objective of this study is to explore the impact of those institutional factors which initiated the internationalization process. This study reveals that institutional factors of cross listing and increased financial availability induced the internationalization process of Chinese firms. Using the financial data of non-financial firms for the period of 2005–2015, we demonstrate that the domestic financial reforms initiated the internationalization process that helps Chinese economies to achieve sustainable economic development. The study also finds that state-ownership helped firms to gain more from increased financial availability than the stand-alone firms. The study concludes that the open business environment helped firms to survive and sustain the international pressure successfully and maintain their sustainable performance. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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Open AccessArticle
Do CSR Activities Increase Firm Value? Evidence from the Korean Market
Sustainability 2018, 10(9), 3164; https://doi.org/10.3390/su10093164 - 04 Sep 2018
Cited by 16
Abstract
Corporate social responsibility has recently become a new metric of corporate performance. Some argue that corporate social responsibility should be used not only for corporate image improvement, but also as a major competitive strategy. Given this perspective, this study considers the effect of [...] Read more.
Corporate social responsibility has recently become a new metric of corporate performance. Some argue that corporate social responsibility should be used not only for corporate image improvement, but also as a major competitive strategy. Given this perspective, this study considers the effect of corporate social responsibility on firm value using data from all firms listed on the Korea Exchange from 2005 to 2015 that provide corporate social responsibility information. Specifically, we use the Korea Economic Justice Institution Index, which is an important metric for corporate social responsibility in Korea, to empirically analyze the relation between corporate social responsibility and firm value. Further, given the growing attention to the Korean manufacturing environment and the significant influence of the global manufacturing environment, we aim to determine the differential characteristics of manufacturing corporations using the relation between corporate social responsibility and firm value. The results strongly support a positive relation between corporate social responsibility and firm value. Furthermore, our detailed analysis of the manufacturing industry indicates some differential characteristics with respect to this relation. Overall, we find that every corporation should adopt corporate social responsibility as an active competitive strategy, taking the corporate condition into account. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
Open AccessArticle
Foreign Monitoring and Audit Quality: Evidence from Korea
Sustainability 2018, 10(9), 3151; https://doi.org/10.3390/su10093151 - 04 Sep 2018
Cited by 4
Abstract
This study investigates the effects of both foreign majority shareholders and foreign investors’ participation in the board of directors on audit quality, as reflected by auditor size and audit fees. In addition, the study examines the moderating effect of an agency problem on [...] Read more.
This study investigates the effects of both foreign majority shareholders and foreign investors’ participation in the board of directors on audit quality, as reflected by auditor size and audit fees. In addition, the study examines the moderating effect of an agency problem on the relationship between foreign investors and the monitoring of audit quality. Using 1574 non-financial firm-year observations listed on the Korea Stock Exchange from 2000 to 2003, we find that the presence of foreign investors such as foreign block shareholders and foreign outside directors increases audit quality. At the same time, the monitoring role of foreign block shareholders is more powerful than that of foreign external directors. Moreover, the foreign block shareholders in professional management-controlled firms exert a more profound influence on audit quality than do those in owner-controlled ones. These test results imply that foreign investors with independence, expertise, and monitoring incentives could play an important role in improving the corporate governance system in Korea, which in turn would not only enhance firm value, but also strengthen the sustainability of Korean companies. Full article
(This article belongs to the Special Issue Sustainability in Asian Emerging Markets)
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