Search Results (211)

This study explores how corporate governance reforms can enhance financial reporting quality and organizational transparency, focusing on Greece’s transition from Law 3016/2002 to Law 4706/2020. The legislative reform aimed to modernize governance structures, align national practices with international standards, and strengthen investor protection in a post-crisis economic environment. Moving beyond a simple legal comparison, the study examines how Law 3016/2002’s formal compliance model contrasts with Law 4706/2020’s more substantive accountability framework. We hypothesize that Law 4706/2020 introduces substantively stronger governance mechanisms than its predecessor, thereby improving transparency and investor protection, while compliance with the new law imposes materially greater administrative and financial burdens, especially on small- and mid-cap firms. Methodologically, the research employs a narrative literature review and a structured comparative legal analysis to assess the administrative and financial implications of the new law for publicly listed companies, focusing on board composition and diversity, internal controls, suitability policies, and disclosure requirements. Drawing on prior comparative evidence, we posit that Law 4706/2020 will foster governance and disclosure improvements, enhanced oversight, and clearer board roles. However, these measures also impose compliance burdens. Due to the heterogeneity of listed companies and the lack of firm-level data following Law 4706/2020’s implementation, the findings are neither fully generalizable nor quantifiable; future quantitative research using event studies or panel data is required to validate the hypotheses. We conclude that Greece’s new framework is a critical step toward sustainable corporate governance and more transparent financial reporting, offering regulators, practitioners, and scholars examining legal reform’s impact on governance effectiveness and financial reporting integrity. Full article

Emerging markets face growing pressures to integrate sustainable English business practices while maintaining economic growth, particularly in addressing environmental challenges and achieving carbon neutrality goals. English Financial information extraction becomes crucial for supporting green finance initiatives, Environmental, Social, and Governance (ESG) compliance, and sustainable investment decisions in these markets. This paper presents FinATG, an AI-driven autoregressive framework for extracting sustainability-related English financial information from English texts, specifically designed to support emerging markets in their transition toward sustainable development. The framework addresses the complex challenges of processing ESG reports, green bond disclosures, carbon footprint assessments, and sustainable investment documentation prevalent in emerging economies. FinATG introduces a domain-adaptive span representation method fine-tuned on sustainability-focused English financial corpora, implements constrained decoding mechanisms based on green finance regulations, and integrates FinBERT with autoregressive generation for end-to-end extraction of environmental and governance information. While achieving competitive performance on standard benchmarks, FinATG’s primary contribution lies in its architecture, which prioritizes correctness and compliance for the high-stakes financial domain. Experimental validation demonstrates FinATG’s effectiveness with entity F1 scores of 88.5 and REL F1 scores of 80.2 on standard English datasets, while achieving superior performance (85.7–86.0 entity F1, 73.1–74.0 REL+ F1) on sustainability-focused financial datasets. The framework particularly excels in extracting carbon emission data, green investment relationships, and ESG compliance indicators, achieving average AUC and RGR scores of 0.93 and 0.89 respectively. By automating the extraction of sustainability metrics from complex English financial documents, FinATG supports emerging markets in meeting international ESG standards, facilitating green finance flows, and enhancing transparency in sustainable business practices, ultimately contributing to their sustainable development goals and climate action commitments. Full article

The renovation of old urban residential areas is and will continue to be an important part of urban renewal in China. The renovation of existing old urban residential areas focuses more on the physical level of renovation and pays insufficient attention to the improvement of collaborative community governance. However, collaborative community governance is the key to sustainable renovation. This study aims to explore the formation mechanism of multiple subjects’ collaborative governance in the renovation of old urban residential areas. A general collaborative governance theoretical framework was adopted and adjusted by innovatively introducing the improvement of collaborative community governance in old urban residential areas as an important variable in collaborative results. Data were collected through 853 questionnaires in 16 provinces across China and analyzed using Structural Equation Modeling. Data analysis reveals the following conclusions: (1) institution design and the collaborative process have significant positive impacts on collaborative results, while facilitative leadership has a negative impact; (2) the collaborative process is an important mediating variable on collaborative results; (3) government departments’ and residents’ self-governing organizations play important roles in improving collaborative community governance. Face-to-face dialogue and consultation, information disclosure and transparency, and reaching an intermediate consensus are important mediator variables. The research results provide theoretical support and practical suggestions for promoting the improvement of multiple-subject collaboration through old urban residential area renovation. Full article

The increasing pressure for environmental, social, and governance (ESG) accountability in publicly funded institutions has raised concerns about the authenticity and efficiency of ESG implementation. This study investigates the relationship between public ESG funding, disclosure quality, and organizational efficiency across Greek public and financial entities. Using a mixed-methods approach—data envelopment analysis (DEA), qualitative ESG content scoring, and bibliometric mapping—we reveal that symbolic compliance remains prevalent, often decoupled from actual sustainability outcomes. Our DEA findings show that technical efficiency is strongly associated with reporting clarity, the use of verifiable metrics, and governance integration, rather than the mere volume of funding. The qualitative analysis further confirms that many disclosures reflect reputational signaling rather than impact-oriented transparency. Bibliometric results highlight a systemic underrepresentation of the public sector in ESG scholarship, particularly in Southern Europe, underscoring the need for regionally grounded empirical studies. This study provides practical implications for improving ESG accountability in publicly funded institutions and contributes a novel approach that integrates efficiency, content, and bibliometric analysis in the ESG context. Full article

This study investigates the impact of environmental, social, and governance (ESG) disclosure on value creation in a balanced panel of 100 non-financial Sharia-compliant firms listed on the Saudi Stock Exchange over the period 2014–2023. The analysis employs a combination of econometric techniques, including fixed effects models with Driscoll–Kraay standard errors, Pooled Ordinary Least Squares (POLS) with Driscoll–Kraay standard errors and industry and year dummies, and two-step system generalized method of moments (GMM) estimation to address potential endogeneity and omitted variable bias. Value creation is measured using Tobin’s Q (TBQ), Return on Assets (ROA), and Return on Equity (ROE). The models also control for firm-specific variables such as firm size, leverage, asset tangibility, firm age, growth opportunities, and market capitalization. The findings reveal that ESG disclosure has a positive and statistically significant effect on firm value across all three performance measures. Furthermore, firm size significantly moderates this relationship, with larger Sharia-compliant firms experiencing greater value gains from ESG practices. These results align with agency, stakeholder, and signaling theories, emphasizing the role of ESG in enhancing transparency, reducing information asymmetry, and strengthening stakeholder trust. The study provides empirical evidence relevant to policymakers, investors, and firms striving to achieve Saudi Arabia’s Vision 2030 sustainability goals. Full article

Corporate environmental claims often neglect the substantial ecological impact of land-use changes. This case study examines the spatial dimension of retail-driven land-use transformation by analyzing supermarket expansion in the Veneto region (northern Italy), with a focus on a large grocery retailer. We evaluated its corporate environmental claims by assessing land consumption patterns from 1983 to 2024 using Geographic Information Systems (GIS). The GIS-based methodology involved geocoding 113 Points of Sale (POS—individual retail outlets), performing photo-interpretation of historical aerial imagery, and classifying land-cover types prior to construction. We applied spatial metrics such as total converted surface area, land-cover class frequency across eight categories (e.g., agricultural, herbaceous, arboreal), and the average linear distance between afforestation sites and POS developed on previously rural land. Our findings reveal that 65.97% of the total land converted for Points of Sale development occurred in rural areas, primarily agricultural and herbaceous lands. These landscapes play a critical role in supporting urban biodiversity and providing essential ecosystem services, which are increasingly threatened by unchecked land conversion. While the corporate sustainability reports and marketing strategies emphasize afforestation efforts under their “We Love Nature” initiative, our spatial analysis uncovers no evidence of actual land-use conversion. Additionally, reforestation activities are located an average of 40.75 km from converted sites, undermining their role as effective compensatory measures. These findings raise concerns about selective disclosure and greenwashing, driving the need for more comprehensive and transparent corporate sustainability reporting. The study argues for stronger policy frameworks to incentivize urban regeneration over greenfield development and calls for the integration of land-use data into corporate sustainability disclosures. By combining geospatial methods with content analysis, the research offers new insights into the intersection of land use, business practices, and environmental sustainability in climate-vulnerable regions. 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

In Europe, corporate sustainability reporting through the double materiality assessment was formally introduced with the Corporate Sustainability Reporting Directive in response to the European Sustainability Reporting Standards. The double materiality assessment is essential not only to determine the scope of corporate sustainability reporting but also to guide companies toward an efficient allocation of resources and shape corporate sustainability strategies. However, although EFRAG represents the technical adviser of the European Commission, there are numerous “interoperable” standards related to the assessment of double materiality, including the Global Reporting Initiative (GRI), or UNI 11919-1:2023. This research intends to systematically analyze similarities and divergences between the most widespread double materiality assessment standards at the global scale, highlighting their strengths and weaknesses and trying to identify a comparable path toward the creation of a set of common guidelines. This analysis is carried out through the systematic study of seven standards and by answering nine questions ranging from generic ones, such as “what is the concept of double materiality?”, to more technical questions like “does the standard identify thresholds?”, but adding original prospects such as “does the standard refer to different types of capital?”. Findings highlight that EFRAG, UNI 11919-1:2023, and GRI represent the most complete and least-discretionary standards, but some methodological aspects need to be enhanced. In the double materiality assessment, companies must identify key stakeholders, material topics and material risks, and must develop the double materiality matrix, promoting transparent disclosure, continuous monitoring, and stakeholders’ engagement. While comparability is principally required among companies operating within the same sector and of similar size, this does not preclude the possibility of comparing firms across different sectors with respect to specific indicators, when appropriate or necessary. Full article

This study investigates the impact of outsiders’ demand for more information (or transparency) on corporate social responsibility (CSR) initiatives. Drawing on a dataset of U.S. companies from 2010 to 2023, CSR performance is measured using ASSET4 ratings, while CSR disclosure levels are captured through the number of words and sentences in reports. Utilizing within-industry and -firm OLS regressions, our analyses reveal a positive relationship between the demand for more information and future CSR investments, showing that firms with higher demand for information not only enhance their CSR performance but also expand the length of their CSR reports. These results suggest that increased pressures for information encourage organizations to engage more deeply with social responsibility, resulting in more robust CSR activities and more comprehensive reporting practices. This study contributes to the existing literature by highlighting the strong predictive role of outsiders’ demand for more information in promoting CSR investment and disclosure, and by offering important insights for policymakers and practitioners on fostering corporate responsibility through enhanced transparency. Full article

This study examines the degree of alignment between the actual environmental performance and the ESG disclosures of 365 listed financial institutions in Europe for the fiscal year 2024. Although ESG reporting has become a standard practice in the financial sector, there are still concerns that the quality of the disclosure may not accurately reflect substantive environmental action, which increases the risk of greenwashing. This study addresses this issue by incorporating both ESG disclosure indicators and green accounting metrics into a multi-criteria decision-making framework. This framework is supported by entropy-based weighting to assure objectivity in criterion importance, as outlined in the PROMETHEE II method. The Greenwashing Risk Index (GWI) is a groundbreaking innovation that quantifies the discrepancy between an institution’s classification based on ESG transparency and its performance in green accounting indicators, including environmental penalties, provisions, and resource usage. The results indicate that there is a substantial degree of variation in the performance of ESGs among institutions, with a significant portion of them exhibiting high disclosure scores but insufficient environmental substance. These discrepancies indicate that reputational sustainability may not be operationally sustained. The results have significant implications for regulatory supervision, sustainable finance policy, and ESG rating methodologies. The framework that has been proposed provides a replicable, evidence-based tool for identifying institutions that are at risk of greenwashing and facilitates the implementation of more accountable ESG evaluation practices in the financial sector. Full article

The valuation of biological assets represents a crucial component for the generation of accounting information, especially in the context of the agricultural sector, where assets subject to continuous transformation processes predominate. This study aims to analyze, through a systematic review of the literature, how the measurement methods established by International Accounting Standard 41 (IAS 41) affect the quality, accuracy, and usefulness of accounting reports. The results show that the correct valuation of biological assets significantly improves strategic and financial decision-making by providing more reliable and representative data on the economic reality of the sector. Finally, the study highlights the main practical challenges in the application of IAS 41, including fair value volatility, the subjectivity of estimates, the limited availability of reliable data, and the need for more flexible accounting frameworks that consider the cultural, climatic, and productive realities of each environment. Based on these findings, the importance of strengthening transparency and accounting disclosure and adapting measurement methods to the particularities of the agricultural sector in order to improve the quality of information and the confidence of external users is highlighted. 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

This study investigates the relationship between disclosures related to Sustainable Development Goal 7 (SDG 7) and the financial profitability of Romanian commercial banks during the 2017–2023 period. Using an unbalanced panel dataset of 17 banks and applying fixed-effects regression models, the paper examines how transparency around energy-related sustainability practices influences various dimensions of bank profitability: recurring earning power (REP), loan yield (LY), return on assets (ROA), and return on equity (ROE). Macroeconomic energy indicators, such as the energy intensity level of primary energy (EnInt) and renewable energy consumption (REnC), are also controlled for. The findings indicate that SDG 7.1 disclosures are negatively associated with all profitability measures, except for LY, suggesting potential short-term trade-offs between sustainability transparency and financial outcomes. In contrast, SDG 7.2 disclosures positively impact REP, ROA, and ROE, underscoring the financial relevance of renewable energy financing. SDG 7.a disclosures show no significant relationship with profitability, indicating limited operational involvement in global energy cooperation. Additionally, higher energy intensity negatively affects REP and LY, supporting existing evidence that energy efficiency improves banking performance. These findings have implications for banking strategy, emphasizing the need to align sustainability disclosures with business priorities while recognizing the long-term benefits of green finance and energy efficiency. Full article

This research investigates the effect of board characteristics on environmental, social, and governance (ESG) disclosure among firms listed on the Saudi Stock Exchange (Tadawul) from 2021 to 2023. Motivated by the global shift toward sustainable development and the Saudi Vision 2030 agenda, this study examines how board size, gender diversity, independence, expertise, and compensation impact ESG disclosure practices. Drawing on stakeholder and agency theories, the regression model uses a sample of 78 Saudi-listed companies. ESG disclosure is measured using a content analysis-based checklist that conforms to international and Saudi ESG reporting frameworks. The findings indicate that background and skills, female representation, and compensation positively correlate with ESG disclosure. Conversely, board size and independence do not show significant relationships. The results highlight the pivotal role of board composition in emphasizing business practices for sustainability in emerging markets, particularly within the unique institutional setting of Saudi Arabia. The study contributes to the growing body of ESG literature by offering factual proof from an under-researched context and practical ramifications for investors, legislators, and business executives, as well as seeking to enhance transparency and accountability through effective board governance. Full article

Transparency in ESG financial materiality disclosure by corporations is now in doubt due to the inconsistent ESG framework that governs ESG disclosures, particularly in developing nations like South Africa. This is evident in the financial performance of banks and manufacturing firms as a result of the higher rate of susceptibility to ESG issues. Hence, this study empirically investigated the effect of ESG financial materiality disclosure on the financial performance of banks and manufacturing firms in South Africa from 2015 to 2024. Also, the moderating role of ESG transparency on the relationship between ESG financial materiality disclosure and financial performance was investigated. Descriptive analysis, a correlation matrix, and panel regression analysis were employed for analysis purposes. The financial metrics include ROA, ROE, and Tobin’s Q, while ESG financial materiality disclosure and the ESG disclosure score of the firms were the independent variable and moderating variable, respectively. The results show that ESG financial materiality exerts a significant adverse impact on ROA and ROE but an insignificant positive effect on Tobin’s Q in banks. For manufacturing firms, the impact is insignificant and negative on ROA, ROE, and Tobin’s Q. Also, the interactive effect of transparency insignificantly weakens the effect of ESG financial materiality disclosure on financial performance in both banks and manufacturing firms. This concludes that the transparency in ESG financial materiality disclosure is not sufficient to improve financial performance in both sectors but should be integrated in the core business objectives of firms. Also, it suggests that over-disclosure and greenwashing of ESG reports should be avoided. Full article