Search Results (192)

This study examines the intersection of environmental, social, and governance (ESG) disclosure (operationalized through sustainability reporting), corporate financial performance, and the behavioral dynamics of herding in capital structure decisions among non-financial firms in five ASEAN countries. As ESG and sustainability finance gain prominence in addressing climate change and climate risk, understanding the behavioral factors that relate to ESG adoption is crucial. Employing a quantitative approach, this research utilizes a purposive sample of 125 non-financial firms from Indonesia, Malaysia, the Philippines, Singapore, and Thailand, gathered from the Bloomberg Terminal spanning 2018–2023. Managerial Herding Ratio (MHR) is used to assess herding behavior, while Sustainability Report Disclosure Index (SRDI) measures ESG disclosure. Partial Least Squares Structural Equation Modeling (PLS-SEM) and Multigroup Analysis (MGA) were applied for data analysis. This research finds that while sustainability reporting enhances return on assets (ROA) and Tobin’s Q, it does not significantly relate to net profit margin (NPM). The findings also confirm that herding behavior—where companies mimic the financial structures of peers—moderates the relationship between sustainability reporting and performance outcomes, with leader firms gaining more from transparency efforts. This highlights the double-edged nature of herding: while it can accelerate ESG adoption, it may dilute the strategic depth of climate action if firms merely follow rather than lead. The study provides actionable insights for regulators and corporate strategists seeking to strengthen ESG finance as a driver for climate resilience and long-term stakeholder value. Full article

How to promote sustainable development and deal with the actual development demands in economic transformation through land-use planning is crucial for local governments. The urban sustainable development mainly relies on creativity and talents in the digital era, and talents are increasingly attracted by local people-oriented land use. However, the current planning ideology remains at meeting corporate and people’s basic needs rather than specific needs of talents, especially the increasingly emerging digital creatives. To promote the talent agglomeration and sustainable development through land planning, this paper uses micro-celebrities on Bilibili, an influential creative content creation platform among young people in China, as an example to study the geographical distribution of digital creative talents and its relationship with urban amenities by constructing an index system of urban amenities, comprising natural, leisure, infrastructure, and social and institutional amenities. The concept of borrowed amenities is introduced to examine the effects of amenities of surrounding cities. This study demonstrates that micro-celebrities show a stronger preference for amenities compared with other skilled talents. Meanwhile, social and institutional amenities are most crucial. Furthermore, urban leisure represented by green spaces and consumption spaces is also attractive. At the regional scale, with prefecture-level cities as units, the local talents agglomeration is also influenced by the borrowed amenities in the context of regional integration. It indicates that the local land use should consider the characteristics of the surrounding cities. This study provides strategic inspiration that a happy and sustainable city should first be people-oriented and provide sufficient space for consumption, entertainment, and interaction. Full article

China’s national strategies emphasize both achieving carbon peaking and neutrality (“dual carbon” objectives) and fostering high-quality economic development. This dual focus highlights the critical importance of the Green and Low-Carbon Transition (GLCT) of the economy and the development of New Quality Productive Forces (NQPF). Firms are central actors in this transformation, prompting the core research question: How does corporate engagement in GLCT contribute to the formation of NQPF? We investigate this relationship using panel data comprising 33,768 firm-year observations for A-share listed companies across diverse industries in China from 2012 to 2022. Corporate GLCT is measured via textual analysis of annual reports, while an NQPF index, incorporating both tangible and intangible dimensions, is constructed using the entropy method. Our empirical analysis relies primarily on fixed-effects regressions, supplemented by various robustness checks and alternative econometric specifications. The results demonstrate a significantly positive relationship: corporate GLCT robustly promotes the development of NQPF, with dynamic lag structures suggesting delayed productivity realization. Mechanism analysis reveals that this effect operates through three primary channels: improved access to financing, stimulated collaborative innovation and enhanced resource-allocation efficiency. Heterogeneity analysis indicates that the positive impact of GLCT on NQPF is more pronounced for state-owned enterprises (SOEs), firms operating in high-emission sectors, those in energy-efficient or environmentally friendly industries, technology-intensive sectors, non-heavily polluting industries and companies situated in China’s eastern regions. Overall, our findings suggest that corporate GLCT enhances NQPF by improving resource-utilization efficiency and fostering innovation, with these effects amplified by specific regional advantages and firm characteristics. This study offers implications for corporate strategy, highlighting how aligning GLCT initiatives with core business objectives can drive NQPF, and provides evidence relevant for policymakers aiming to optimize environmental governance and foster sustainable economic pathways. Full article

This study explores the relationship between institutional shareholders and climate-related disclosure (CRD) and how sustainability committees influence this relationship among publicly listed Malaysian firms. For the analysis, 990 firm-year observations were studied from 198 highly polluting firms from 2021 to 2024. A strong CRD index was designed using the recognized climate reporting frameworks and well-grounded literature to assess the level of climate-related disclosure. Fixed-effects and hierarchical panel regression models show that CRD increases when institutional investor ownership increases, meaning firms with more institutional investors disclose more information on climate-related topics. In addition, a sustainability committee at the board level greatly improves this relationship by highlighting the positive impact of strong internal governance. As a result, such committees establish climate management and improve communication with investors, making the firm’s actions more transparent. The findings of this study are consistent with agency and legitimacy theories because institutional investors assist in monitoring firms’ environmental performance, and sustainability committees help the company maintain these standards internally. Further, this study helps grow the understanding of corporate governance (CG) and sustainability by pointing out that the presence of institutional owners and sustainability committees can promote openness about climate matters. Accordingly, these findings can guide policymakers, investors, and business leaders in boosting responsible environmental reporting and sustainable business practices in developing countries. Full article

Cross-docking operations in Eastern and Central European markets face increasing complexity amid persistent uncertainty and inflationary pressures. This study provides the first comprehensive comparative analysis integrating economic efficiency with sustainability indicators across strategic locations. Using mixed-methods analysis of 40 bibliographical sources and quantitative modeling of cross-docking scenarios in Bratislava, Prague, and Budapest, we integrate environmental, social, and governance frameworks with activity-based costing and artificial intelligence analysis. Optimized cross-docking achieves statistically significant cost reductions of 10.61% for Eastern and Central European inbound logistics and 3.84% for Western European outbound logistics when utilizing Budapest location (p < 0.01). Activity-based costing reveals labor (35–40%), equipment utilization (25–30%), and facility operations (20–25%) as primary cost drivers. Budapest demonstrates superior integrated performance index incorporating operational efficiency (94.2% loading efficiency), economic impact (EUR 925,000 annual savings), and environmental performance (486 tons CO₂ reduction annually). This is the first empirically validated framework integrating activity-based costing–corporate social responsibility methodologies for an emerging market cross-docking, multi-dimensional performance assessment model transcending operational-sustainability dichotomy and location-specific contingency identification for emerging market implementation. Findings support targeted infrastructure investments, harmonized regulatory frameworks, and public–private partnerships for sustainable logistics development in emerging European markets, providing actionable roadmap for EUR 142,000–EUR 187,000 artificial intelligence implementation investments achieving a 14.6-month return on investment. Full article

Sustainable Supply Chain Management (SSCM) emerges as a vital catalyst for inclusive growth and sustainable development, particularly in emerging economies where the manufacturing sector is central to economic progress. This study offers an in-depth analysis of the current research landscape on SSCM in the context of developing nations, outlining key theoretical frameworks and advocating for a solid conceptual foundation alongside a structured agenda for future research initiatives. This study employs a structured literature review technique to analyze 92 published articles indexed by Scopus from 2013 to 2024, revealing a burgeoning trend in the subject of global supply chains in developing nations. The analysis identifies key keywords such as “sustainable supply chain management,” “manufacturing industries,” “inclusive growth,” and “supply chain and sustainability,” and develops a conceptual model that elucidates how SSCM practices can be effectively integrated into manufacturing sectors to facilitate equitable growth and enhance business competitiveness. This work’s novelty lies in employing a systematic literature review to develop a holistic SSCM conceptual framework constructed upon six primary drivers: business model innovation, inclusive SSCM, corporate governance and leadership, technological and innovation capabilities, policy and regulatory environment, and circular feedback. This model addresses the ambiguity surrounding SSCM and inclusive growth, providing a robust foundation for future research and performance measurement. This study contributes to the field by providing a practical and theoretically grounded framework for researchers, policymakers, and practitioners seeking to implement impactful and effective SSCM initiatives in developing nations’ manufacturing sectors to promote inclusive growth and sustainable development. Full article

This study investigates voluntary compliance with the Task Force on Climate-Related Financial Disclosures (TCFD) framework in 64 financial, Environmental, Social, and Governance (ESG) reports from six Spanish IBEX-35 energy firms (2020–2023) and explores the implications for intangible assets and corporate reputation, employing empirical quantitative text mining and Natural Language Processing (NLP) in Python. A validated scale-based taxonomy within the TCFD framework applies query-driven rules to extract relevant text. This enables an evaluation of aspects of the reports, facilitating the development of a compliance index measuring each company’s adherence to TCFD recommendations. All companies showed year-on-year improvements (2023 was the most comprehensive), yet none fully adhered due to information gaps. Disparities in the disclosures of Scope 1,2 and 3, persisted, suggesting reputational risks. A replicable methodological model generating a compliance index that assesses the ‘being’ (‘true performance’) versus ‘seeming’ (‘external perception’) dichotomy within sustainability reports and acts as a potential reputational barometer for stakeholders. By providing unprecedented evidence of TCFD reporting in the Spanish energy sector, this study closes a significant academic gap. Future research may analyze ESG reports using AI agents, study the impact of ESG on energy-intensive companies from AI data centers, supporting services like Copilot, ChatGPT, Claude, Gemini, and extend this methodology to other industrial sectors. Full article

This study investigated how corporate maturity—measured through firm age and lifecycle stage—moderates the value relevance of Environmental, Social, and Governance (ESG) disclosures in a frontier market context, using Bangladesh as a case study. Drawing on panel data from 2011–2012 to 2023–2024 for 86 publicly listed non-financial firms, the study employed a modified Ohlson valuation framework, panel regression analysis, and multiple robustness techniques (2SLS, PSM). ESG disclosure was measured using a researcher-developed index aligned with international reporting standards (GRI, SASB, TCFD, UN SDGs). ESG disclosures are positively associated with firm value, but this relationship is significantly moderated by corporate maturity. Younger firms exhibit a stronger valuation effect from ESG transparency, driven by higher signaling and legitimacy needs. In contrast, mature firms experience a diminished marginal benefit, reflecting routine compliance rather than strategic differentiation. These findings challenge the uniform application of ESG assessment models and suggest the need for lifecycle-adjusted disclosure ratings, particularly in nascent regulatory environments like Bangladesh. Investors and regulators should tailor ESG evaluation criteria by firm age and industry sustainability exposure. Younger firms, often overlooked, may carry outsized ESG signaling value in emerging markets. Enhancing ESG transparency among younger firms can foster greater stakeholder trust, support inclusive growth, and strengthen social accountability in emerging economies. This study contributes to the ESG literature by introducing corporate maturity as a key moderating variable in value relevance analysis. It provides new empirical insights from a developing economy and proposes lifecycle-based adaptations to global ESG rating methodologies. Full article

The growing demand for sustainable business practices has led to the development of corporate sustainability assessment tools, with environmental, social, and governance (ESG) indicators becoming central to non-financial performance evaluation. These metrics increasingly influence investment decisions and corporate strategies. However, questions remain about whether sustainability practices have a measurable impact on economic value creation and distribution. This study investigates the causal relationship between corporate sustainability measured by the ISE-B3 index and stakeholder-oriented economic performance, specifically focusing on Distributed Added Value (DAV) and its main components. The analysis uses financial data from Brazilian companies listed in the ISE-B3 portfolios for the years 2022, 2023, and 2024. To address potential endogeneity, this study employs a panel data econometric approach using Instrumental Variables with Two-Stage Least Squares (IV-2SLS) as the primary estimation strategy, complemented by fixed and random effects models for robustness checks. The results indicate no statistically significant causal relationship between the ISE-B3 index and DAV or its components. The coefficient of ISE-B3 on DAV is −0.0006 (p = 0.896) in the IV-2SLS estimation, with similar non-significant results for all components. The models exhibit strong temporal dependence, with lagged dependent variable coefficients ranging from 0.8295 to 1.3578, reflecting the persistence of financial dynamics. These findings suggest that, within the Brazilian context, participation in the ISE-B3 index does not directly influence how companies create or distribute financial value to stakeholders. This study contributes to the literature by providing robust econometric evidence on the economic effects of corporate sustainability, offering a stakeholder-oriented perspective beyond the traditional shareholder-centric view. Full article

This study investigates how Environmental, Social, and Governance (ESG) scores and the Corporate Governance Index (CGI) jointly influence firm value in Türkiye. To address the contextual limitations of global ESG metrics, this study incorporates the CGI, a country-specific governance measure developed by Capital Markets Board of Türkiye, as a complementary indicator. Using panel data from 44 non-financial firms listed on the Istanbul Stock Exchange between 2019 and 2023, the study applies a random effects regression model with robust standard errors. The findings indicate that both ESG and CGI scores are positively and significantly associated with firm value, along with profitability (ROA), while financial leverage and liquidity (CR) show negative effects. The results underscore the strategic value of aligning sustainability performance with governance quality, particularly in emerging market contexts. This study contributes to the literature by providing empirical evidence for an integrated ESG–CGI framework and offers practical insights for corporate managers, investors, and policymakers. Full article

The energy transition is not only a technological or market-driven process but also a discursive and institutional challenge. While conventional research emphasizes financial incentives and regulatory frameworks, the role of policy narrative intensity in shaping renewable energy innovation has received limited empirical attention. This study addresses this gap by analyzing 8837 provincial-level policy documents (2005–2023) from 31 regions across China. We construct a policy narrative intensity index using the PMC framework to systematically assess how institutional discourse influences the direction and intensity of renewable energy development. The results reveal that a 1% increase in policy narrative intensity corresponds to a 4.60% rise in renewable energy innovation, as measured by renewable electricity generation, with robustness confirmed through IV and IHS methods. Regional heterogeneity is also evident: executive-led regions such as Jiangxi, Shandong, and Fujian exhibit higher narrative strength and stronger renewable energy outcomes, while market-driven provinces like Shanghai and Guangdong show weaker narrative alignment. Mechanism testing demonstrates that policy narratives enhance renewable energy innovation by (1) strengthening environmental regulation enforcement (β = 0.37), (2) increasing green patent activity by 23.6%, and (3) raising public adoption of renewable energy by 17.2 percentage points. This study highlights the governing value of policy narratives as institutional public goods and reveals their crucial role in aligning administrative capacity, corporate innovation, and public engagement to drive energy transition. These insights contribute to the broader discourse on SDG7/SDG13-aligned sustainability governance. Full article

This study examines the critical role of institutional quality in driving corporate adaptation to climate change within the EU-27 member states from 2006 to 2023. It aims to investigate how governance factors—control of corruption, government effectiveness, rule of law, and regulatory quality—influence business strategies for environmental resilience and sustainability, focusing on environmental investments and industrial production. Employing fixed and random effects regression models on a balanced panel dataset, we analyze two dependent variables: environmental protection investment corporations (EPIC), measuring investments in pollution prevention and environmental degradation reduction, and industrial production (IP), reflecting output in mining, manufacturing, and utilities. A composite institutional quality index, derived through principal component analysis (PCA) from the four governance indicators, captures their collective impact, reducing multicollinearity and enhancing analytical robustness. Control variables, including final energy consumption, environmental tax revenues, expenditure on environmental protection, and a Paris Agreement dummy, are incorporated to test the institutional quality effect. Results demonstrate that higher institutional quality significantly enhances EPIC, particularly in countries with greater environmental tax revenues, indicating that robust governance and fiscal policies incentivize sustainable corporate investments. Conversely, the effect on IP is less consistent, with higher fossil energy consumption and lower environmental tax revenues driving production, suggesting a reliance on high-polluting industries. The Paris Agreement positively influences IP, reflecting stronger climate-focused industrial strategies post-2015. These findings underscore the pivotal interplay between institutional quality and environmental fiscal policies in fostering corporate adaptation to climate change. Over the long term, strong governance is essential for aligning business practices with sustainability goals, reducing environmental degradation, and mitigating climate risks across the EU. This study highlights the need for cohesive policies to support green investments and transition industries toward renewable energy sources, addressing disparities in environmental performance among EU member states. Full article

Our research investigates the relationship between eco-innovation and earnings management among 567 firms listed on the FTSE All-Share Index from 2014 to 2022. By examining how sustainability-driven innovation influences financial reporting practices, we explore the strategic motivations behind income smoothing in firms engaged in environmental initiatives. The findings reveal a positive association between eco-innovation and earnings management, suggesting that firms may leverage eco-innovation not only for environmental signalling but also to project financial stability and meet stakeholder expectations. The analysis further uncovers that the propensity for earnings management is amplified in firms facing financial constraints, proxied by low Whited-Wu (WW) scores and weak sales performance, and in those characterised by high financial opacity. We employ a robust multi-method approach to address potential endogeneity and selection bias, including entropy balancing, propensity score matching (PSM), and the Heckman Test correction. Our research contributes to the literature by providing empirical evidence on the dual strategic role of eco-innovation—balancing sustainability signalling with earnings management—under varying financial conditions. The findings offer actionable insights for regulators, investors, and policymakers navigating the intersection of corporate transparency, financial health, and environmental responsibility. Full article

With the development and proliferation of sustainable investing, ESG ratings have gradually become an important basis for measuring corporates’ ESG performance and influencing investors to make investment decisions. However, the validity of ESG ratings has also raised public concerns due to the differences in the evaluation systems and standards of ESG rating agencies. This paper analyzes the effectiveness of ESG rating data provided by Chinese rating agencies in terms of retrospective and predictive effectiveness. It assesses how well these data reflect the past ESG performance of Chinese companies and its ability to predict future ESG performance. The study focuses on China Securities Index 300 companies from 2016 to 2020 and benchmarks their ESG ratings against five indicators derived from negative events. Through regression analysis, this paper studies the association between these indicators and ESG ratings. The results indicate that domestic ESG ratings in China can capture the past ESG performance of Chinese companies, but they can only partially predict the future ESG performance. Full article

In the European Union’s Corporate Sustainability Reporting Directive (CSRD) context, organizations must increasingly integrate non-financial indicators into their reporting structures. The role of accounting information in establishing a comprehensive model for measuring corporate social responsibility (CSR) is critical due to its inherent characteristics. This study proposes a structured model for measuring CSR performance using accounting information systems (AIS) as an analytical and operational support tool. The research investigates the extent to which financial analysts and auditors use AIS to evaluate specific CSR indicators related to employee satisfaction, environmental impact, and customer relations and how these contribute to a global CSR index. The study is based on a quantitative survey conducted among accounting professionals in Romania using a structured questionnaire, analyzed through correlation-based models. The findings reveal a statistically significant association between AIS usage and the capacity to quantify CSR performance, with clear distinctions based on professional roles and areas of expertise. This article contributes to the literature by demonstrating how AIS can operationalize sustainability reporting frameworks and support the transition toward evidence-based CSR assessments. The proposed model offers a practical tool for organizations to improve transparency, stakeholder engagement, and strategic alignment with sustainability objectives. Full article