Search Results (346)

The phenomenon of digitalization and servitization paradoxes constrains the motivation of manufacturing firms to implement both strategies above. It has been shown that the role of digitalization in the link between servitization and firm performance in manufacturing firms has not yet been unanimously concluded. In this study, based on the theories of digitalization, dynamic capability, and the knowledge base view, we propose a research model to investigate the relationship between servitization, digital capabilities, and firm performance of manufacturing firms, conducting an empirical study based on questionnaire data from 435 manufacturing firms in China. The empirical results show that the three sub-dimensions of servitization of manufacturing firms have a significant positive impact on both financial and non-financial performance of firms. Meanwhile, digital capabilities act as a mediator between the three sub-dimensions of manufacturing servitization and firm performance (financial and non-financial). These results provide empirical evidence that manufacturing firms must emphasize knowledge-based digital capability development in current servitization and digitalization initiatives. Simultaneously, the study further addresses contradictions in the conclusions of existing studies on the interrelationships between servitization, digitalization, and firm performance. Full article

Environmental accounting adoption remains limited in transitional economies, particularly where formal institutions fail to enforce sustainability mandates. We examine this phenomenon in Albania—an EU candidate country with regulatory requirements but no implementation infrastructure. Drawing on institutional-void theory and resource-based perspectives, we test whether adoption mechanisms diverge when external enforcement is weak. Survey data from 151 Albanian non-financial companies, analyzed using ordinal logistic regression, show that firm size predicts adoption, whereas sector, ownership, and market orientation do not. Critically, individual-level factors—managerial environmental knowledge and pro-environmental values—significantly predict adoption, while external institutional factors exert negligible influence. Analysis of Corporate Sustainability Reporting Directive readiness reveals similar patterns: internal organizational capacities support preparation, whereas external support remains insufficient. These findings demonstrate how institutional voids shape sustainability accounting and provide empirical evidence from an understudied Balkan context. Full article

Background/Objectives: Clinical instruction and mentorship are essential components of nursing education and early professional development. In Greece, while nursing curricula align with EU directives mandating both theoretical and clinical training, significant gaps persist in the quality, coordination, and legislative support of mentorship. This work aims to (i) synthesise evidence on clinical instruction and mentorship in Greece and draw on selected European examples to provide contextual insight, and (ii) integrate national stakeholder perspectives to generate actionable recommendations for a Greek clinical mentorship framework. Methods: A narrative literature review was conducted, identifying 19 eligible articles examining mentorship, clinical instruction and preceptorship in European and Greek contexts. In addition, a national stakeholder focus group with 25 participants, including representatives from academia, healthcare institutions, regulatory bodies, and nursing associations, was held in Athens in 2024. Data from both sources were thematically analysed and integrated to identify gaps, best practices, and context-specific recommendations. Results: Findings revealed inconsistent collaboration between universities and clinical institutions, limited training and recognition for clinical instructors, and the absence of a unified national framework. Stakeholders highlighted structural barriers to clinical mentoring such as understaffing and lack of policy support and expressed strong interest in a mentorship reform. Comparative analysis with European models demonstrated feasible pathways for Greece, including structured training, certification, and non-financial incentives. During the national stakeholder focus group, a dual-pathway mentorship system tailored for nursing students and newly hired nurses was most recommended to ensure both continuity and quality in professional development of nurses. Conclusions: Despite alignment with EU directives, Greece lacks an integrated national mentorship framework that ensures consistent clinical learning and supports workforce development. Two priority policy actions emerge from this work: (1) establishing a legally supported national certification and training system for clinical mentorship, and (2) educational structures in the clinical setting to improve educational quality, workforce retention and patient care outcomes. Full article

Corporate social responsibility (CSR) plays a growing role in fostering transparency, stakeholder trust, and long-term firm sustainability, particularly in emerging markets. Firms that actively engage in CSR are more likely to disclose credible financial information, which can reduce the incentive to withhold adverse news and thereby limit stock price crash risk (SPCR). This study investigates the impact of CSR on SPCR, while also examining whether this relationship varies across different stages of the firm life cycle (FLC). The analysis is based on an unbalanced panel of listed non-financial firms from the Pakistan Stock Exchange (PSX), covering the period from 2009 to 2023. Financial data were obtained from the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP), while market data were collected from the PSX. Employing fixed-effects robust regression models and two crash risk proxies, negative conditional skewness (NCSKEW) and down-to-up volatility (DUVOL), the results reveal a consistent and significant negative association between CSR and SPCR. This suggests that firms with stronger CSR engagement are less prone to extreme negative stock returns. However, the moderating effect of FLC is only evident at the introduction and decline stages, indicating that the effectiveness of CSR in reducing crash risk depends on a firm’s position in its organizational life cycle. These findings contribute to the literature on CSR and financial stability in emerging markets and offer practical implications for investors, managers, and policymakers seeking to promote risk-aware, socially responsible corporate strategies. Full article

This study examines the impact of Environmental, Social, and Governance (ESG) disclosures on the firm valuation of non-financial firms listed in South Africa, using Tobin’s Q as a firm value proxy. Using a panel data approach of 642 firm-year observations from 2017 to 2022, the study applies Fixed Effects, Random Effects, and Generalized Method of Moments (GMM) estimators to address possible endogeneity concerns. The results consistently show that, for the whole sample, ESG disclosures are positively and significantly related to firm value, thus supporting the view that markets reward transparency and sustainability initiatives. Firm size and liquidity also have positive impacts, while financial leverage has an inverse relationship with firm value. Subgroup regression analysis shows significant sectoral differences: ESG disclosure in non-manufacturing companies has a positive and significant relationship with firm value, in line with stakeholder and signaling theories, emphasizing the premium for intangible assets like reputation and trust. However, in manufacturing companies, ESG disclosure is negatively and significantly associated with firm value, implying concerns among investors regarding compliance costs, strategic misalignment, or possible “greenwashing.” The study contributes to the emerging-market literature by (i) introducing a PCA-based ESG index specific to JSE-listed non-financials, (ii) triangulating results across static and dynamic specifications to ensure robustness, and (iii) uncovering sectoral heterogeneity that has been largely overlooked. The research also has practical implications for corporate managers, policymakers, and investors on the alignment of ESG practices to industry attributes for long-term value optimization. Full article

This study investigates the relationship between investor sentiment (IS) and trust in sustainability reports (TSRs) in Egypt, which is an emerging market that has recently strengthened its sustainability disclosure practices. Drawing on behavioral finance and disclosure theory, this study also examines the moderating role of financial literacy (FL) in shaping this relationship. A quantitative, questionnaire-based survey was presented to 328 individual investors who are familiar with sustainability and ESG reporting. The data were analyzed using descriptive statistics, reliability tests, and both simple and hierarchical regression analysis. The results indicate that IS has a strong and significant positive effect on trust in sustainability reports, with market optimism and emotional influence emerging as the most influential dimensions. Furthermore, the hierarchical regression results reveal that FL significantly strengthens the relationship between IS and TSR, indicating that, within the present sample, more financially literate investors translate sentiment into more informed and rational trust judgments. These findings contribute to the accounting and sustainability reporting in the literature by demonstrating that trust in non-financial disclosures is not only shaped by reporting practices but is also heavily influenced by investor psychology and financial competence. This study highlights the importance of enhancing both disclosure quality and investor financial literacy to strengthen confidence in sustainability reporting in emerging markets. Full article

This paper explores the factors influencing the sustainability of microfinance programmes in the OR Tambo Coastal District (ORTCD) in the Eastern Cape, South Africa. The paper questions whether the services offered to microfinance clients can facilitate loan repayment and the sustainability of microfinance programmes. Precisely, the paper examines how the combination of financial and non-financial services facilitates loan repayment and the sustainability of these programmes. In the study, the recipients of microfinance loans in the OR Tambo Coastal District of the Eastern Cape were interviewed about the services offered by microfinance institutions. The study adopted a qualitative research approach and collected data through semi-structured interviews with recipients of microfinance loans in ORTCD. The collected data was analysed thematically following Braun and Clarke’s six-step approach, ensuring that codes and themes emerged inductively from participants’ narratives. The obtained results revealed that loan repayment and programme sustainability are shaped by the interdependent role of financial services (loan type and loan size) and non-financial services (technical assistance and client-institutional relationships). However, weak institutional ties and limited monitoring threaten long-term programme outcomes. The study’s findings suggest that combining financial and non-financial services improves repayment capacity, institutional confidence, and sustainability, particularly in underserved rural communities. Therefore, the study recommends strengthening training frequency, establishing continuous client evaluation mechanisms, and integrating institutional perspectives to improve the sustainability of microfinance interventions. Full article

This study examines the impact of Artificial Intelligence (AI)-enhanced Environmental, Social, and Governance (ESG) reporting on firm valuation in emerging markets. It aims to explore how AI integration enhances the interpretability and predictive accuracy of ESG metrics in shaping market perceptions and investor decisions. This study employs a panel dataset from 2018 to 2024, analysing publicly listed non-financial firms across five major sectors: manufacturing, energy, telecommunications, consumer goods, and industrials. This study contributed by employing AI-powered multimodal analysis with conventional ESG scoring methods and integrating Fixed-Effects Regression with machine learning (ML) algorithms including Extreme Gradient Boosting (XGBoost) and Random Forest to identify complex, non-linear relationships within ESG data and firm valuation. The results show empirical evidence that integrating ML enhances the explanatory power of ESG data. Findings indicate that ESG performance is positively correlated with higher market valuations, particularly in Environmental and Social dimensions. Governance metrics are more inconsistent, which may be due to heterogeneity in governance practices, regulatory enforcement and the challenges of quantifying governance quality beyond compliance indicators across the focus emerging markets. Firms identified in ESG controversies tend to face valuation penalties, which stresses market sensitivity to reputational risks. ML algorithms outperform conventional techniques in predictive accuracy, revealing complex, non-linear interactions within ESG data. This study contributes to both the academic literature and practice showing how next-generation ESG reporting can robust valuation models, address limitations of conventional ESG scoring, and ensure a reliable outlook for investors and policymakers of industries in emerging markets. Full article

This paper examines how air pollution affects the distribution of labor income within firms. We build a within-firm incentive model and show that air pollution, treated as an exogenous shock, reduces production efficiency and increases operating uncertainty. In response, firms compress both employee and executive compensation. Because executive pay carries a larger weight on performance- and equity-based components and is therefore more sensitive to profit volatility, it declines by more, mechanically narrowing within-firm pay dispersion. At the same time, rank-and-file wages display downward rigidity. The result is a “synchronized decline with sharper cuts at the top,” a form of spurious equality. Using 2014–2022 data on non-financial A-share listed firms in China, we find that a 1% increase in air pollution is associated with a 0.37% average decline in labor income. Effects are stronger in labor-intensive firms and in firms with weaker unions. Two-stage least squares estimates indicate real consequences: talent outflows and reduced innovation. By linking air quality to wage setting, human capital, and innovation, our results reveal a sustainability channel through which pollution undermines decent work and inclusive growth—issues of global relevance for urban economies. The mechanisms we document are likely to generalize beyond China and inform integrated policies that combine environmental regulation with labor-market and innovation policy to support a just and sustainable transition. Full article

The investor community has emphasized the role of firms’ environmental, social, and governance (ESG) practices in the last few years. The present study is motivated by existing studies that have not provided conclusive evidence on the relationship between a firm’s ESG practices and financial performance and whether a country’s economic development status influences this relationship. This study used data from 1917 non-financial firms across the top 13 countries over 10 years to investigate. The results conclusively indicate that the ESG score, by and large, positively impacts firms’ financial performance. The further examination of the results shows that while the impact is positive in the context of developed countries, in the case of firms from emerging economies such as China and India, the ESG score does not impact their financial performance, indicating that for emerging economies, growth takes precedence over ESG concerns. Overall, this study concludes that a country’s economic development status does influence the relationship between a firm’s ESG practices and financial performance. Full article

We examine how capital structure related to firm performance for UK companies in the FTSE All-Share over 2018–2023, explicitly segmenting pre-pandemic (2018–2019), pandemic (2020–2021), and post-pandemic (2022–2023) periods. Using Bloomberg data for 516 firms and panel fixed-effects models (Hausman-tested), we assess the impact of short- and long-term leverage on ROA, ROCE, Tobin’s Q, and EPS, and compare financial versus non-financial firms. Leverage is, on average, negatively associated with ROA and EPS, consistent with pecking-order and agency-cost arguments: market-based outcomes (Tobin’s Q) show weaker, nuanced links. The adverse effects of debt are stronger for non-financial firms, particularly during and after COVID-19, while financial firms display a post-COVID positive association between short-term debt and ROA, suggesting sector-specific debt utilization under stress. Firm size relates negatively to Tobin’s Q for non-financials. Results highlight how crisis conditions and industry characteristics shape the leverage–performance nexus, offering practical guidance for managers and policymakers on capital structure decisions in turbulent environments. Full article

This study aims to investigate the determinants of labour productivity across European non-financial entities using aggregated data from the Bank for the Accounts of Companies Harmonized (BACH) database. Focusing on six European Union countries (Belgium, France, Italy, Portugal, Poland, and Spain). Annual information from 2010 to 2023 is used (the last available year), including three size classes (small, medium-sized and larger entities) per division (two-digit code) by year and by country, totalling 14,188 observations. The combination of sectors and class sizes varies from 191 to 208 by country. It uses gross value added per employee as a proxy for labour productivity. Using a fixed-effects estimator and panel data regression techniques, the analysis reveals that labour productivity explanatory factors, particularly firm size, profitability, financialisation, leverage, and tangibility, have heterogeneous and sometimes contradictory effects across countries, sectors, and size classes. Larger firms generally tend to have higher levels of labour productivity, although this feature is not consistent among countries. Size and profitability more consistently exert a strong positive influence, whereas financialisation and leverage typically show negative or nonlinear effects. The results highlight the structural diversity of the European corporate landscape and challenge the adequacy of one-size-fits-all policy measures, contributing to the literature on productivity and offering further insights to policymakers by integrating cross-sectional, sectoral, and size-specific perspectives on labour efficiency within the EU context. Full article

While the inclusiveness of digital finance is widely acknowledged, existing research predominantly focuses on its developmental level, with limited attention to its spatial correlation network and structural characteristics. A city’s centrality within this network governs the flow and allocation of digital financial resources, thereby influencing interregional and urban-rural efficiency in resource allocation and income distribution, which ultimately shapes the trajectory of common prosperity. Based on panel data from 280 Chinese cities (2011–2021), this study employs social network analysis to measure urban centrality in the digital financial spatial correlation network and empirically investigates its impact and mechanisms on common prosperity. The main findings are as follows: (1) Benchmark regressions confirm that overall network centrality and its three dimensions—degree, betweenness, and closeness centrality—significantly promote common prosperity, specifically by enhancing the “wealth” dimension and reducing regional development disparities, with the growth effect currently surpassing the inclusion effect. (2) Robustness checks, including instrumental variable approaches addressing endogeneity, affirm the reliability of the core findings. (3) Heterogeneity analysis reveals that the positive effect is more pronounced in cities that are less developed or have weaker financial foundations, such as those in Western China, non-financial centers, cities with no presence of formal financial institutions in antiquity, fifth-tier cities, and small and medium-sized cities, suggesting that network centrality serves as a catalytic tool for urban catch-up strategies. (4) Mechanism analysis identifies that fostering entrepreneurship, particularly among self-employed individuals and wholesale/retail enterprises characterized by decentralized operations and abundant transaction data, is the primary channel through which centrality advances common prosperity. This study provides insights into promoting balanced regional development and common prosperity by optimizing the spatial structure of digital finance. Full article

Against China’s innovation-driven strategy, this study explores the impact of R&D investment on firm innovation performance and the mediating role of the wage gap between high- and low-skilled labor (HLWG) using data from Chinese A-share non-financial listed firms spanning 2010–2022. Employing static panel regression, Bootstrap test, and instrumental variables (R&D investment deduction, college enrollment expansion), the study finds three key results. First, R&D investment positively affects both firm innovation performance and HLWG. Second, HLWG exerts a positive impact on firm innovation performance. Third, HLWG plays a partial mediating role in the relationship between R&D investment and firm innovation performance. Robustness tests and instrumental variable regression confirm the stability of these conclusions. This finding enriches the theoretical understanding of the R&D-innovation transmission mechanism, offers insights into enterprises to coordinate R&D investment and wage structure optimization, and provides policy references for refining innovation incentives and labor market policies. Full article

This study examines how supply chain structure diversification drives high-quality enterprise development in the digital economy. Using panel data from Chinese listed non-financial firms (2009–2023), we find that diversification of both suppliers and customers significantly improves firms’ total factor productivity (TFP), and the results remain robust after controlling for endogeneity. Mechanism analyses show that diversification enhances innovation capability, sustainability performance, and risk resilience, while digital supply chains strengthen these effects by improving information flow and coordination. Heterogeneity tests reveal that the impact is greater for firms with higher operational efficiency, cultural synergy, and information transparency. Overall, the findings highlight that diversified and digitally integrated supply chains are essential for innovation-driven, resilient, and sustainable enterprise growth. Full article