Search Results (1,870)

As organizations strive to balance environmental stewardship with economic competitiveness, understanding the performance implications of Green Innovation (GI) has become increasingly important. Although the nexus between Green Product Innovation (GPI), Green Process Innovation (GPrI), and organizational outcomes has attracted sustained scholarly attention, empirical evidence remains inconclusive. To reconcile these inconsistencies and delineate boundary conditions, this study synthesizes data from 48 empirical investigations (2012–2025) via a random-effects meta-analysis with the Hartung–Knapp adjustment and trim-and-fill procedures to strengthen statistical inference. Results reveal significant small-to-moderate positive associations between GI and environmental (r = 0.172), financial (r = 0.191), and innovation performance (r = 0.143). Notably, moderator analyses demonstrate a synergy premium, where Integrated GI measures significantly outperform isolated GPI or GPrI approaches (r = 0.353). Substantial heterogeneity exists (I² = 91.2%), which is significantly moderated by innovation type, industry pollution intensity, geographic region, and research design. Our findings reinforce the Natural-Resource-Based View (NRBV) and the Dynamic Capabilities framework, highlighting that strategic returns depend on asset orchestration and contextual factors. We conclude that firms should adopt a holistic approach, integrating both product and process innovations to enhance competitive advantage in an incremental and context-contingent manner, while interpreting innovation-performance results cautiously given the limited evidence base. Full article

The present study evaluates the performance of hotel companies in Romania using Data Envelopment Analysis (DEA) integrated with a hybrid weighted TOPSIS model (Technique for Order Preference by Similarity to the Ideal Solution). This approach captures both technical efficiency and multidimensional competitiveness. The DEA included an output-oriented Variable Returns to Scale (VRS) model (with four inputs and one output). It was followed by TOPSIS aggregation with hybrid entropy weights to obtain a composite performance index. The research used cross-sectional financial data for 2023, specific to hotels in Romania, and allowed interpretation across five territorial categories based on predominant relief. The results show that the 852 analyzed hotels have a relatively homogeneous structure and moderate variations in performance scores. At the same time, top-performing units are strongly concentrated in economically or touristically dynamic counties. The integrated DEA–TOPSIS results indicate that high-performing hotels tend to cluster spatially, with plain counties hosting the largest number of hotels at the national level and also a substantial share of high-performance hotels relative to major urban centers; thus, their performance structure is not uniform but strongly polarized. In contrast, the other geographical areas show pronounced clustering, with top hotels concentrated around consolidated leisure destinations, such as Brașov, Sibiu, Constanța, and Prahova. Overall, research using the DEA–TOPSIS method highlights significant spatial disparities that influence both managerial decision-making and regional development policies, affecting the long-term sustainable performance and competitiveness of the Romanian hotel sector. Full article

This study proposes a dual-shield framework to elucidate the capital structure dynamics within China’s policy-intensive real estate sector. We delineate a coercive policy shield wherein binding regulations supersede market-based incentives, and a proactive sustainability shield which recognizes how superior environmental performance can lead to reduced financing costs. Analyzing data from Chinese A-share firms during 2003 to 2021, we present robust evidence that supports both mechanisms. Notably, the effect of the debt tax shield is diminished in real estate sectors, underscoring the policy shield’s ability to negate traditional financial incentives. In addition, the macroprudential tightening implemented in 2017 has disproportionately disrupted leverage adjustments, especially among firms subsequently affected by the “Three Red Lines” policy. Rigorous quasi-experimental analyses additionally illustrate that green bond issuers experience a significant and enduring reduction in their cost of debt, thereby establishing a substantive sustainability shield. Our findings contribute to the literature on sustainable finance by conceptualizing approaches that extend beyond tax shields, effectively integrating regulatory and market forces to align the capital structures with objectives for sustainable transition. Full article

This study investigates the performance consequences of adopting emerging digital technologies such as artificial intelligence, machine learning, big data analytics, and cloud computing, with attention to financial, operational, and environmental dimensions. Using an event study of 134 adoption announcements by publicly traded U.S. firms from 2009 to 2019, we compare adopters with matched control firms identified through propensity score matching. The empirical evidence shows that adoption is followed by gains in profitability and market valuation, reflected in improvements in return on assets, return on equity, and Tobin’s Q, alongside higher inventory turnover. At the same time, adopting firms exhibit a measurable decline in greenhouse gas emissions when compared with matched control firms. Taken together, these results suggest that digital transformation can align economic performance with environmental improvement, rather than forcing firms to choose between the two. The findings therefore provide practical guidance for managers and policymakers seeking to evaluate digital investments through the lens of long-term sustainability. Full article

Environmental, Social, and Governance (ESG) has emerged as a critical paradigm for corporate sustainable development. In the maritime industry, a sector central to global trade, ESG is gaining prominence, driven by regulatory pressures and investor demands. This study conducts a systematic literature review to map the research landscape of ESG in the shipping industry from 2020 to 2024. Employing the PRISMA methodology, we analyze 20 core academic papers from the Web of Science and Scopus databases. Our findings reveal a rapidly growing research interest, with a clear thematic evolution from a singular focus on environmental issues to a more holistic, three-pillar (E, S, and G) framework. Key research hotspots identified include the relationship between ESG performance and financial performance, ESG disclosure, and risk management. While a positive correlation between good ESG practices and corporate financial performance is a recurring theme, significant challenges persist, notably inconsistent disclosure standards, fragmented global research efforts, and a lack of industry-specific evaluation frameworks. This review synthesizes the current state of knowledge, identifies critical research gaps, and proposes a forward-looking agenda focusing on developing industry-specific frameworks, analyzing external institutional impacts, and enhancing data credibility. Our findings provide a foundational reference for academics, policymakers, and industry practitioners to advance the sustainable transformation of the shipping industry. Full article

Research on how corporate social responsibility (CSR) practices linked to sustainable operations (SO) affect corporate financial performance (FP) is still limited. This study presents a novel methodological proposal to measure the individual impact of such practices on the profitability of companies listed on the Mexican Stock Exchange. The method employed consists of a Random Forest (RF) model complemented by Explainable Machine Learning (XML) techniques, namely Individual Conditional Expectation (ICE), Partial Dependence Plots (PDPs) and SHapley Additive exPlanations (SHAP), to calculate the individualized marginal effect in the return on assets (RoA), return on equity (RoE) and return on investment capital (ROIC) for each company, explained by the environmental, social, and governance scores provided by Bloomberg (Bloomberg Finance, L.P., New York, NY, USA), such as the market capitalization, debt-to-equity ratio, sales growth, and years since listing. The novelty of this model lies in the application of RF and XML, which offers a comprehensive and interpretable perspective on the CSR–FP relationship and the use of lagged explanatory variables to avoid endogeneity problems, overcoming the limitations of traditional analyses. The results indicate that environmental scores exhibit the most consistent contribution to FP, whereas social and governance effects are highly metric-dependent. The SHAP analysis reveals substantial heterogeneity in the drivers of firm FP, highlighting the relevance of XML methods. Full article

Using the panel data of Chinese A-share firms from 2012 to 2023, we find that executives’ focus on digitalization is significantly and positively associated with corporate sustainability performance. The finding holds firm after a suite of endogeneity and robustness tests. Heterogeneity tests indicate that such a favorable impact is more salient for large enterprises, industry players with superior competitiveness, and entities situated in eastern China. The mechanism tests reveal that executives’ digital attention enhances corporate sustainable development by improving resource structuring capability, resource bundling capability, and resource leveraging capability. Additionally, financing constraints weaken, while media attention will enhance this promoting effect. Additional dimension-focused analyses demonstrate that the direct promotional impact of executives’ digital attention on corporate financial performance remains statistically insignificant, whereas it exerts a markedly positive catalytic effect on corporate environmental performance. This research offers novel theoretical interpretations and practical implications regarding the role of executive cognitive orientation in advancing corporate sustainable development against the backdrop of digital transformation. Full article

Social media has emerged as a powerful marketing channel for smallholder farmers, reshaping how they engage with consumers through direct online interactions and content sharing, while also facilitating the communication of sustainable agricultural practices. This study investigates social media marketing usage among smallholder farmers in Saudi Arabia and examines its impact on marketing capabilities through the Technology Acceptance Model (TAM), sustainability orientation (SO), and entrepreneurial orientation (EO). Survey data collected from 300 farmers were analyzed using partial least squares structural equation modeling (PLS-SEM). The results indicate that perceived usefulness (β = 0.195, p < 0.001) and perceived ease of use (β = 0.511, p < 0.001) significantly influence social media marketing usage, with perceived ease of use exerting the strongest influence, while perceived usefulness remains a significant enabler. Social media marketing usage also positively affects sustainability orientation (β = 0.525, p < 0.001) and enhances marketing capabilities both directly and indirectly through sustainability orientation, which acts as a significant mediator. Entrepreneurial orientation further exerts a positive influence on social media usage, marketing capabilities, and financial performance. The model explains 53.6% of the variance in social media marketing usage, 40.3% in marketing capabilities, and 73.5% in financial performance. The study extends TAM by conceptualizing sustainability orientation as a value-creation mechanism through which social media marketing use is transformed into enhanced marketing capabilities, rather than as a mere outcome of digital adoption. The findings offer practical and policy-relevant insights for strengthening digital literacy, sustainability-driven marketing strategies, and agricultural digital infrastructure. Full article

This paper aims to investigate the impact of ethnic diversity among employees and managers on firm performance, focusing on return on assets and return on equity. The analysis is conducted on a sample of 391 U.S. companies over a five-year period, 2020–2024. The quantitative framework includes a wide range of indicators related to financial performance, ethnic diversity among employees, ethnic categories of managers, and other control variables. The research methodology employs the ordinary least squares (OLS) method to highlight these effects, using fixed-effects and random-effects regression models, both linear and nonlinear. By estimating the regression models, the empirical results support the hypotheses established in the current state of the literature, indicating that ethnic diversity affects firm performance in a mixed manner, with both positive and negative effects on ROA and ROE. These findings are particularly relevant for practitioners, given the need to integrate minority representation into performance assessment, risk evaluation, and decision-making processes. Furthermore, regarding the female component within firms, this dimension contributes to the promotion of sustainability and a sound ESG-oriented approach. Consequently, social factors such as ethnicity can influence companies’ financial performance and shape how firms are perceived by investors. Full article

This study examines whether corporate climate performance is reflected in firm valuation by synthesising recent empirical evidence, using Tobin’s Q as a forward-looking indicator of market expectations. Employing a random-effects meta-analysis of 30 peer-reviewed studies published between 2020 and 2025 across multiple industries and regions, the findings reveal a modest yet statistically significant positive association between stronger climate performance and higher market valuations, suggesting that investors increasingly incorporate climate-related information into firm pricing. Contrary to prevailing assumptions in the literature, proactive climate strategies, such as emissions-reduction initiatives, do not systematically generate greater valuation benefits than disclosure-oriented approaches; both exhibit comparable positive effects. Similarly, valuation outcomes do not differ materially between self-reported and externally verified climate data. Meta-regression analysis identifies data source as the only statistically significant moderator, although its influence remains nuanced. Overall, the results indicate that climate performance enhances firm valuation in a context-dependent manner, challenging the view that only proactive strategies or externally verified data are uniquely rewarded by financial markets. The study contributes to the sustainable and corporate finance literature by clarifying how capital markets price climate-related corporate behaviour under heterogeneous strategic responses. Full article

For listed companies, board diversity is often associated with improved decision-making, sustainability and financial performance. However, prior studies have neglected the interplay between board diversity and executive remuneration, especially in developing countries, over extended time horizons, and at the level of individual executives. This study addressed this gap by examining the evolution of board diversity and executive remuneration in South African listed companies from 2002 to 2017. Specifically, it investigated trends in board diversity and the determinants of executive remuneration, with particular attention to gender and ethnic pay gaps. Descriptive and regression analyses were conducted on a dataset comprising 8835 executive-level observations. Findings reveal a steady increase in female and non-white executive representation, possibly to align with societal expectations and remain legitimate. However, persistent gender and ethnic pay gaps were also noted, which might indicate that white and/or male executives are more entrenched and able to extract additional remuneration in line with the managerial power theory. The study contributes to the literature by documenting long-term trends in diversity and remuneration, providing empirical evidence on the influence of demographic attributes on remuneration outcomes, and offering insights for regulators, investors and non-executive directors seeking to advance equity and effective governance. Full article

In the global economy, traditional accounting-based ratios alone are often insufficient to fully explain firm performance, increasing the importance of complementary information sources such as sustainability and governance disclosures. In this context, environmental, social, and governance (ESG) indicators, together with corporate governance signals, have increasingly been recognized as important drivers of firm performance. However, the literature does not provide a clear and generalizable view on the impact of ESG indicators on profitability. This study aims to examine whether sustainability and corporate governance signals provide additional information value beyond traditional financial ratios in predicting ROE. To this end, two models were compared using a sample of 428 non-financial publicly traded companies operating in Turkey. The firm-level dataset was constructed using financial statements and independent audit disclosures obtained from the Turkish Public Disclosure Platform (KAP). Tree-based machine learning models were employed to capture potential nonlinear relationships and complex interactions between financial and non-financial indicators. Model performance was evaluated within a Bootstrapped Grouped Cross-Validation framework that considered firm-level dependency; the statistical reliability of performance differences was tested using bootstrap-based confidence intervals and matched tests. Among the evaluated models, Random Forest achieved the strongest overall predictive performance. In conclusion, this study demonstrates that sustainability and corporate governance disclosures provide statistically significant additional information value to ROE prediction. Due to the use of multiple algorithms, it contributes to the literature in a generalizable manner. Full article

The transition toward sustainable energy in Arctic and subarctic regions requires innovative approaches that account for both the unique geographical conditions and the economic and policy challenges associated with isolated power systems. This study examines how net energy metering (NEM) and net billing schemes influence distributed solar photovoltaic (PV) adoption and financial performance among utilities in Alaska’s Railbelt. The Railbelt, which supplies power to three-quarters of the state’s population, remains heavily reliant on natural gas and exhibits limited renewable penetration compared to other arctic regions. Using a stochastic risk-based modeling framework with Monte Carlo simulations and the Bass diffusion model, the analysis estimates the 15-year financial impacts of different NEM adoption scenarios on utilities. Results show that while NEM drives PV adoption through higher compensation for exported generation, it also increases potential revenue losses for utilities compared to net billing. Policy innovations like those introduced in Alaska’s House Bill 164 (HB 164), which establishes a reimbursement fund to mitigate utility revenue losses, indicate that regulatory work is being designed to balance distributed generation incentives with economic sustainability. This work provides a baseline for understanding how a policy framework influences both utility and consumer economics in terms of NEM and solar PV adoption in Arctic and subarctic systems. Full article

This study investigates the impact of ESG practices on the financial stability in a multisector sample of 86 publicly listed Brazilian firms, focusing on the Weighted Average Cost of Capital (WACC) and Altman Z-Score (AZS) as a proxy for insolvency risk. Using Bloomberg data from 2010 to 2021, this research applies advanced econometric methods, including Ordinary Least Squares (OLS), Vector Autoregression (VAR) and Fully Modified Ordinary Least Squares (FMOLS), to capture both short- and long-term effects. The findings reveal a financial learning curve: in the short term, ESG adoption can temporarily increase WACC and insolvency risk due to initial implementation costs, whereas in the long term, it reduces financial risk, enhances operational efficiency, and strengthens corporate resilience. These results underscore ESG practices as a strategic determinant of long-term value creation and financial stability. This study offers actionable insights for policymakers, investors, and corporate leaders aiming to align sustainability initiatives with financial performance in emerging market contexts. Full article

This paper investigates the relationship between sustainability performance, measured through environmental, social, and governance (ESG) indicators, and the stock performance of Saudi-listed firms from 2015 to 2022. The aim is to assess whether firms with higher ESG scores exhibit stronger stock returns within the Saudi market context. The analysis relies on panel data and employs pooled ordinary least squares, fixed-effects, and random-effects models to ensure a robust estimation. Across all specifications, the empirical results indicate a consistent positive association between ESG performance and stock returns, suggesting that sustainability-related practices are increasingly reflected in market valuations. The findings contribute to the expanding literature on sustainable finance in emerging markets by illustrating the developments within Saudi Arabia, a market undergoing rapid transformation under Vision 2030. This paper enhances understanding of the financial relevance of ESG performance in the region and offers timely insights for investors and market participants monitoring the integration of sustainability within Saudi Arabia’s capital market. Full article