Search Results (498)

This study investigates the impact of countries’ fundamental risk on the speed of adjustment (SOA) towards firms’ target capital structures. Using a dataset comprising 17,747 non-financial firms from 44 countries, this study finds that a reduction in country-specific fundamental risk significantly increases a firm’s rate of leverage adjustment. More specifically, we observe that a one standard deviation reduction in fundamental risk results in a substantial 12.79% increase in SOA for book leverage and a 4.81% increase for market leverage. The study also finds evidence of the influence of individual dimensions of fundamental risk on SOA. It implies that improved operational efficiency, high foreign accessibility, enhanced corporate transparency, and increased political stability expedite the pace of leverage adjustment within firms. Robustness checks using a machine learning random forest estimator predicted leverage targets to corroborate these findings. The results highlight the critical role of institutional quality in reducing financing frictions and promoting more efficient corporate capital adjustments. These insights have profound implications for policymakers, emphasising the need to strengthen institutional and regulatory frameworks to enhance capital market integrity and reduce friction, which could ultimately create value for the firm stakeholders. Full article

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

The primary aim of this paper is to survey the literature’s coverage of integrating circular economy practices with renewable energy sources in the manufacturing sector. A systematic review of 107 peer-reviewed articles published between 2018 and 2023 in journals within the Web of Science and Scopus databases was conducted. The review documented CE and RE applications in emerging economies across Africa, Asia, and South America, assessing the overall characteristics of the research, its methodological rigour, and the barriers to or facilitators of CE and RE integration. Integration refers to the implementation of at least one CE practice, as well as one or more RE sources, in a single context, like manufacturing. A total of 14 practices were included in this analysis because they were mentioned at least 10 times by varying authors. The practice list includes recycling (mentioned in 74 articles), reducing materials (57), remanufacturing (53), the reuse of materials (51), waste minimisation (48), renewable energy use (43), consumer awareness (38), repurposing (35), refuse (33), education and training (28), environmentally friendly design (22), environmental criteria for supplier selection (17), reverse logistics (16), and stakeholder collaboration (14). Recycling, life cycle assessment, and end-of-life management were the most common CE practices in the literature. Additionally, solar power and bioenergy emerged as the most frequently recurring areas of integration for CE practices within the RE realms. Governmental support, incentives, research and development, and strong environmental legislation were found to be the most frequently recurring facilitators of effective CE and RE integration. Organisational resistance, bureaucratic red tape, lack of human capital, limited stakeholder involvement, and insufficient collaboration were found to be important barriers to effective integration between CE and RE. Full article

Having in view the current global disruptive social and economic landscape, sustainability becomes more important than ever. As producers become more concerned about adopting more sustainable practices, customer awareness towards sustainable behavior must be the focus of all stakeholders. Within this context, the SHIFT framework (proposed in 2019) highlights the manner in which consumers’ traits and attitudes influence their propensity towards sustainable consumption. It consists of five factors considered to be relevant to consumer behavior: Social influence, Habit formation, Individual self, Feelings and cognition, and Tangibility. Different from previous studies, this research focuses on applying the SHIFT framework to the automotive industry, taking into consideration the contribution of digital technologies to fostering sustainable consumer behavior throughout the entire product lifecycle. Using a qualitative research approach, the most relevant digital technologies in the automotive industry were identified and mapped in relation to the three phases of consumption (choice, usage, and disposal). The research aimed to develop and test an original conceptual framework, starting from the SHIFT. The results of the study highlight the fact that the digital technologies, in their diversity, are integrated in different ways into each of the three phases, facilitating the adoption of sustainable consumption. To achieve sustainability, the two key stakeholders, consumers and producers, should share a common ground on capitalizing the opportunities offered by digital technologies. Full article

Urban transport is a key driver of greenhouse gas emissions in Europe, making its decarbonization essential to achieving EU climate neutrality targets. This study examines how European strategies, such as the Green Deal, the Sustainable and Smart Mobility Strategy, and the Fit for 55 package, are reflected in Romania’s transport policies, with a focus on implementation challenges and urban outcomes in Bucharest. By combining policy analysis, stakeholder mapping, and comparative mobility indicators, the paper critically assesses Bucharest’s current reliance on private vehicles, underperforming public transport satisfaction, and limited progress on active mobility. The study develops a context-sensitive reform framework for the Romanian capital, grounded in transferable lessons from Western and Central European cities. It emphasizes coordinated metropolitan governance, public trust-building, phased car-restraint measures, and investment alignment as key levers. Rather than merely cataloguing policy intentions, the paper offers practical recommendations informed by systemic governance barriers and public attitudes. The findings will contribute to academic debates on urban mobility transitions in post-socialist cities and provide actionable insights for policymakers seeking to operationalize EU decarbonization goals at the metropolitan scale. 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

This research aims to analyze the evolution of productivity and efficiency in tractors featuring varying propulsion system designs through the development of a parametric modeling approach. Recognizing that large row-crop tractors represent a significant capital investment—ranging from USD 0.4 to over 0.8 million for current-generation models—and that machinery costs constitute a substantial share of farm production expenses, this study addresses the urgent need for data-driven decision-making in agricultural enterprises. Utilizing consolidated OECD Code 2 tractor test data for all large row-crop John Deere tractors from the MFWD era to the latest generation, the study evaluates tractor performance across multiple productivity and efficiency indicators. The analysis culminates in the creation of a robust, user-friendly parametric model (R² = 0.9337, RMSE = 1.0265), designed to assist stakeholders in making informed decisions regarding tractor replacement or upgrading. By enabling the optimization of productivity and efficiency while accounting for agronomic and timeliness constraints, this model supports sustainable and profitable management practices in modern agriculture. Full article

The maritime industry faces growing pressure to reduce greenhouse gas (GHG) emissions, reflected in the progressive adoption of stricter international energy regulations. Wind-Assisted Propulsion Systems (WAPS) offer a promising solution by significantly contributing to decarbonization. This paper presents a versatile simulation and optimization platform that supports the conceptual design of WAPS-equipped vessels and evaluates the viability of such investments. The platform uses a steady-state force equilibrium model to simulate vessel performance along predefined routes under realistic weather conditions, incorporating regulatory frameworks and economic assessments. A multi-objective optimization framework identifies optimal designs across user-defined criteria. To demonstrate its capabilities, the platform is applied to a bulk carrier operating between China and the USA, optimizing for capital expenditure, net present value (NPV), and CO₂ emissions. Results show the platform can effectively balance conflicting objectives, achieving substantial emissions reductions without compromising economic performance. The final optimized design achieved a 12% reduction in CO₂ emissions, a 7% decrease in capital expenditure, and a 6.6 million USD increase in net present value compared to the reference design with sails, demonstrating the platform’s capability to deliver balanced improvements across all objectives. The methodology is adaptable to various ship types, WAPS technologies, and operational profiles, offering a valuable decision-support tool for stakeholders navigating the transition to zero-carbon shipping. Full article

This study examines the added value of territorial cooperation within the LEADER approach, a key pillar of the EU’s rural development policy. Both interterritorial and transnational cooperation projects empower Local Action Groups (LAGs) to tackle common challenges through innovative and community-driven strategies. Drawing on over 3000 projects since 1994, LEADER cooperation has proven its ability to deliver tangible results—such as joint publications, pilot projects, and shared digital platforms—alongside intangible benefits like knowledge exchange, improved governance, and stronger social capital. By facilitating experiential learning and inter-organizational collaboration, cooperation enables stakeholders to work across territorial boundaries and build networks that respond to both national and transnational development issues. The interaction among diverse actors often fosters innovative responses to local and regional problems. Using a mixed-methods approach, including case studies of Italian LAGs, this research analyses the dynamics, challenges, and impacts of cooperation, with a focus on learning processes, capacity building, and long-term sustainability. Therefore, this study focuses not only on project outcomes but also on the processes and learning dynamics that generate added value through cooperation. The findings highlight how territorial cooperation promotes inclusivity, fosters cross-border dialogue, and supports the development of context-specific solutions, ultimately enhancing rural resilience and innovation. In conclusion, LEADER cooperation contributes to a more effective, participatory, and sustainable model of rural development, offering valuable insights for the broader EU cohesion policy. 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

Historically Black colleges and universities (HBCUs) in the United States have been experiencing a leadership turnover crisis, with 23 president and chancellor changes announced in 2022 and 41 in 2023. A survey of HBCU stakeholders at the 2023 White House Initiative on HBCUs was conducted to identify high-impact areas linked to this turnover, focusing on areas critical to the advancement and sustainment of HBCUs through the eyes of HBCU stakeholders. Additionally, it attempted to understand how campus dynamics and challenges can impact leaders using capital theory. The survey identified internal and external challenges, including engagement, morale, support, and retention across various stakeholders, suggesting that the turnover crisis needs to be viewed from the perspective of leaders’ turnover rather than leadership turnover. It was concluded that leaders’ forms of capital are compromised by misaligned campus dynamics, negatively impacting morale and engagement, leading to distrust, lack of support, pushback, and attrition. Therefore, leaders’ capitals can be depleted, leading to frustration, burnout, and ultimately voluntary resignation. The findings are crucial for institutions and leaders to understand and, most importantly, mitigate the impact of leader turnover on institutions, which demand stability. Full article

As sustainability becomes increasingly central to organizational strategy, social economy organizations (SEOs) are rethinking their business models. This study employs stakeholder analysis using the value mapping (VM) tool developed by Short, Rana, Bocken, and Evans for the development of the VOLTO JÁ project. The objective of the VOLTO JÁ project is to operationalize a senior exchange programme between SEOs. The VM approach extends beyond conventional customer value propositions to prioritize sustainability for all stakeholders and identify key drivers of sustainable business model (SBM) innovation. The multi-stakeholder methodology comprises the following elements: (1) sequential focus groups aimed at enhancing sustainable business thinking; (2) semi-structured interviews; and (3) workshop to facilitate qualitative analysis and co-create the VM. The findings are then categorized into four value dimensions: (1) value captured—improved participant well-being, enhanced reputational capital, mitigation of social asymmetries, and affordable service experiences; (2) value lost—underused community assets; (3) value destroyed—institutional and systemic barriers to innovation; and (4) new value opportunities—knowledge sharing, service diversification, and open innovation to foster collaborative networks. The study demonstrates that the application of VM in SEOs supports SBM development by generating strategic insights, enhancing resource efficiency, and fostering the delivery of socially impactful services. Full article

Purpose: The acquirer’s corporate environmental performance (CEP) in mergers and acquisitions has been a subject of debate, yielding mixed results. This paper uses the US firm-level data of 1437 M&A deals from 2002–2019 to examine the impact of overall CEP, resource use, emissions, and innovation on the acquirers’ post-merger market value. Design/methodology/approach: This study employs multi-level fixed effects panel regression using Ordinary Least Squares (OLS) and the instrumental variable (IV) 2SLS method to estimate the models and compare the results with those from robust estimation. Absorbing the multiple levels of fixed effects (i.e., firm, industry, and year) offers a novel and robust algorithm for efficiently accounting for unobserved heterogeneity. The results from IV (2SLS) are more convincing, as the method overcomes the problem of endogeneity due to reverse causality and sample selection bias. Findings: The authors find that CEP has a significant impact on market value, particularly in the long term. While both resource use and emissions performance have positive effects, emissions performance has a stronger impact, presumably because external stakeholders and market participants are more concerned about emissions reduction. The performance of environmental innovation is relatively weak compared to other pillars. Descriptive analysis shows low average scores in environmental innovation compared to the resource use and emissions performance of the acquirers. However, large deals yield significant returns from investing in environmental innovation in both the short and long term compared to small deals. Practical implications: This paper offers several practical implications. First, environmental performance can help improve the acquirer’s long-term market value. Second, managers can focus on the strategic side of environmental performance, based on its pillars, and benchmark their relative position against peers. Third, environmental innovation can be considered a new potential, as the market as a whole in this area is still lagging. Given the growing pressure to improve environmental technology and innovation, prospective acquirers should confidently prioritise actions on green revenue, product innovation, and capital expenditure now rather than ticking these boxes later. Originality value: The key contribution is offering valuable insights into the impact of acquirers’ environmental performance on long-term value creation in mergers and acquisitions (M&A). These results fill the gap in the literature focusing mainly on the effect of environmental pillar and sub-pillar scores on acquirer’s firm value. The authors claim that analysing sub-pillar-level granularity is crucial for accurately measuring the effects on firm-level performance. Full article

Higher education institutions (HEIs) are increasingly seen as central actors in entrepreneurial ecosystems, yet their support mechanisms do not always align with the needs of student entrepreneurs. This study investigates how key stakeholders, business students, professors, and experienced start-up founders perceive the relative importance of success factors for student-led start-ups within HEIs. Using a cross-sectional descriptive design, this study used a 34-item survey instrument developed through an extensive literature review and validated for content by a panel of experts. Triangulation between stakeholder groups enabled a multidimensional comparison of perspectives. Descriptive statistics were used to analyze patterns of agreement and variability, resulting in a three-tier framework of success factors based on perceived importance and consensus. High-impact factors included faculty entrepreneurial experience, student mindset, and access to mentorship, while traditional inputs such as infrastructure, legal support, and funding were ranked lower. The findings highlight a misalignment between institutional offerings and stakeholder priorities, highlighting the critical role of social and human capital. This research provides practical guidance for HEIs seeking to improve entrepreneurial support and contributes to theoretical discussions on stakeholder-informed ecosystem models. Although limited by its single-institution context, this study offers a foundation for future cross-institutional and longitudinal research. Full article

This study aimed to analyze whether formal managers’ qualifications explain the Brazilian pension funds’ disclosure level. It started from the assumption of information asymmetry between stakeholders. We also recognize that the problems related to asymmetry in companies participating in the capital market, commonly pointed out in the literature, would not behave in the same way in pension funds. Other factors explain the disclosure in these organizations, like the qualification of managers. We calculated the disclosure level for each of the 209 Brazilian pension funds that made up the sample. We analyzed the dates using multiple linear and logistic regression as a robustness test. The results indicated that the formal qualification of managers, characterized by master’s and or doctoral degrees, has a positive relationship with the level of disclosure of pension funds, indicating that the greater the formal qualification of the manager, the greater the level of disclosure. Thus, this study shows insights that the explanations about company disclosure given in the literature, especially its effect on market value, are not necessarily the same in pension funds, which are explained by other factors, such as the qualification of managers. The results can contribute to regulatory bodies to formulate new rules that favor the capability of managers, in addition to identifying the information demanded by stakeholders, allowing for an increase in the level of disclosure and a reduction in information asymmetry, as well as the improvement of governance practices. Full article