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Journal articles on the topic 'Environmental performance and corporate profitability'
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1
Rizky. H, Rury, Afrizal, and Enggar Diah Puspa Arum. "Pengaruh Kepemilikan Manajemen Serta Kepemilikan Institusional, Profitabilitas Dan Kinerja Lingkungan (Environmental Performance) Terhadap Pengungkapan Corporate Social Responsibility (Studi Empiris Perusahaan Pertambangan Periode 2015-2017)." Jurnal Akuntansi & Keuangan Unja 4, no. 1 (March 25, 2019): 34–44. http://dx.doi.org/10.22437/jaku.v4i1.7427.
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Corporate social responsibility or CSR is an investment for companies for the growth and sustainability (sustainability) of the company, it’s no longer seen as a means of cost needed as a means to gain profits and company commitment to support the creation of sustainable development. This study discusses the main problems, namely the Influence of Management Ownership with Institutional Ownership, Profitability and Environmental Performance (Environmental Performance) on Corporate Social Responsibility Disclosures (Empirical Study of Mining Companies for the 2015-2017 period). The object in this study is the annual report on mining sector companies. This data contains financial reports and other data that support this research. Data obtained during the research are processed, analyzed and further processed on the basis of the theories that have been studied. Corporate Social Responsibility, related to the positive and significant profitability of Corporate Social Responsibility disclosures, related to Environmental Performance on Corporate Social Responsibility disclosures, a Relationship between Managerial Ownership, Institutional Ownership, Profitability and Environmental Performance is needed simultaneously on Corporate Social Responsibility in Indonesia. Mining Company on the Indonesia Stock Exchange
Keywords: Management Ownership, Institutional Ownership, Profitability, Environmental Performance and CSR Disclosure.
ABSTRAK
Tanggung jawab sosial perusahaan atau CSR merupakan investasi bagi perusahaan untuk pertumbuhan dan keberlanjutan (sustainability) perusahaan, bukan dilihat lagi sebagai sarana biaya melainkan sebagai sarana meraih keuntungan serta komitmen perusahaan untuk mendukung terciptanya pembangunan berkelanjutan. Penelitian ini difokuskan kepada masalah pokok yaitu Pengaruh Kepemilikan Manajemen serta Kepemilikan Institusional, Profitabilitas dan Kinerja Lingkungan (Environmental Performance) Terhadap Pengungkapan Corporate Social Responsibility (Studi Empiris Perusahaan Pertambangan periode 2015-2017). Objek dalam penelitian ini adalah Laporan tahunan pada perusahaan sektor pertambangan. Data tersebut meliputi laporan keuangan serta data lainnya yang mendukung penelitian ini. Data yang diperoleh selama penelitian diolah, dianalisis dan diproses lebih lanjut dengan dasar teori yang ada dan dipelajari. Sehingga hasil penelitian menunjukkan bahwa terdapat pengaruh antara Kepemilikan Manajerial terhadap Pengungkapan Corporate Social Responsibility terdapat pengaruh antara Kepemilikan Institusional terhadap pengungkapan Corporate Social Responsibility, terdapat pengaruh positif dan signifikan Profitabilitas terhadap pengungkapan Corporate Social Responsibility, terdapat pengaruh antara Kinerja Lingkungan terhadap pengungkapan Corporate Social Responsibility, terdapat pengaruh antara Kepemilikan Manajerial, Kepemilikan Institusional, Profitabilitas dan Kinerja Lingkungan secara simultan terhadap Corporate Social Responsibility pada Perusahaan Pertambangan di Bursa Efek Indonesia
Kata Kunci: Kepemilikan Manajemen, Kepemilikan institusional, Profitabilitas, Kinerja Lingkungan dan Pengungkapan CSR.
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Russo, Michael V., and Paul A. Fouts. "A Resource-Based Perspective On Corporate Environmental Performance And Profitability." Academy of Management Journal 40, no. 3 (June 1997): 534–59. http://dx.doi.org/10.5465/257052.
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RUSSO, M. V., and P. A. FOUTS. "A RESOURCE-BASED PERSPECTIVE ON CORPORATE ENVIRONMENTAL PERFORMANCE AND PROFITABILITY." Academy of Management Journal 40, no. 3 (June 1, 1997): 534–59. http://dx.doi.org/10.2307/257052.
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Yenidogan, Alp, Tugba Gurcaylilar-Yenidogan, and Nilufer Tetik. "Environmental management and hotel profitability: operating performance matters." Tourism & Management Studies 17, no. 3 (July 31, 2021): 7–19. http://dx.doi.org/10.18089/tms.2021.170301.
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While there is growing consensus on the benefits of going green, the relative benefits of revenue-enhancing and cost-cutting effects of environmental practices over performance have remained a more conservative and less explored phenomenon in corporate management studies. The present study investigates the two parallel mediation effects of cost-saving and revenue generation on profitability through environmental management practices. A bootstrap method is employed to make a statistical inference of the causal mediation effects. The data collected from the lodging industry in Antalya/Turkey revealed that the revenue-enhancing and cost-cutting effects of environmental participation have a positive impact on profitability, while no difference was identified in the strength of the indirect effects. In conclusion, the findings of this study indicate a complementary effect of cost reduction and revenue enhancement for green profit.
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Yuliana, Indah. "Profitability relation, corporate social responsibility fund, and environmental performance with firm value (Study at companies listed in the sustainable and responsible investment index (SRI)–Kehati)." Management and Economics Journal (MEC-J) 3, no. 2 (September 12, 2019): 131. http://dx.doi.org/10.18860/mec-j.v3i2.7495.
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<p align="justify">The paradigm of a company that was originally only oriented to profit has shifted to the tripple bottom line, namely not only concerned with economic interests, but also commitment to the environment (planet) and people (people). This study aims to determine the effect of profitability and funds on Corporate Social Responsibility on corporate value and to determine environmental performance as a moderating variable on the relationship of profitability and funds of Corporate Social Responsibility to the value of the company. The population in this study are companies included in the SRI-Kehati Index 2013-2016. The sample of research is 12 companies taken by purposive sampling technique. Data analysis method used is multiple linear regression analysis and Moderate Regression Analysis (MRA). The results showed that profitability has a positive and significant effect on firm value. Conversely, Corporate Social Responsibility funds have no effect and insignificant to the value of the company. While environmental performance is significantly able to moderate the relationship between profitability and Corporate Social Responsibility funds to company value.</p>
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Ismainingtyas, Berty, Bambang Suryono, and W. Wahidahwati. "FAKTOR-FAKTOR YANG MEMPENGARUHI PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY." Wahana: Jurnal Ekonomi, Manajemen dan Akuntansi 23, no. 1 (February 20, 2020): 1–23. http://dx.doi.org/10.35591/wahana.v23i1.183.
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Abstract. This study aims to discuss the effect of corporate governance which consists of the size of the board of commissioners, audit boards, institutional ownership, managerial ownership, media exposure, environmental performance, financial ratios consisting of leverage, size, profitability to disclosure of corporate social responsibility. The population in this study are Mining Companies that are listed on the Indonesia Stock Exchange (IDX) during the 2013-2017 period. Sampling used in this study using the census method using a total of 21 companies so that the number of studies in the study as many as 105 studies. The data analysis technique used is multiple linear regression analysis using SPSS Statistics 22. The results show that media exposure and profitability are positively related to corporate social responsibility disclosure, while the size of the board of commissioners, audit committe, institutional, managerial ownership, environmental support, leverage and size, do not represent the disclosure of corporate social responsibility.Keywords: Corporate Governance; Media Exposure; Environmental Performance; Financial Ratios Abstrak. Penelitian ini bertujuan untuk menguji pengaruh good corporate governance yang terdiri dari ukuran dewan komisaris, komite audit, kepemilikan institusional, kepemilikan manajerial,media exposure, kinerja lingkungan, rasio keuangan yang terdiri dari leverage, size, profitabilitas terhadap pengungkapan corporate social responsibility. Populasi dalam penelitian ini adalah Perusahaan Pertambangan yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 2013–2017. Pegambilan sampel yang digunakan didalam penelitian ini menggunakan metode sensus dengan menggunakan seluruh populasi sebanyak 21 perusahaan sehingga jumlah observasi dipenelitian ini sebanyak 105 pengamatan. Teknik analisis data yang digunakan adalah analisis regresi linier berganda dengan menggunakan SPSS Statistic 22. Hasil penelitian menunjukkan bahwa media exsposure dan profitabilitas berpengaruh positif terhadap pengungkapan corporate social responsibility, sedangkan ukuran dewan komisaris, komite audit, kepemilikan institusional, kepemilikan manajerial, kinerja lingkungan,leverage dan size,tidak berpengaruh terhadap pengungkapan corporate social responsibility. Kata Kunci: Corporate Governance; Media Exposure; Kinerja Lingkungan; Rasio Keuangan
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Ranidiah, Furqonti, and Geby Dinasti. "DETERRMINAN CORPORATE SOCIAL RESPONSIBILITY (CSR) DISCLOSURE PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA." JURNAL AKUNTANSI, KEUANGAN DAN TEKNOLOGI INFORMASI AKUNTANSI 1, no. 1 (July 9, 2020): 1–12. http://dx.doi.org/10.36085/jakta.v1i1.864.
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ABSTRACT This study aims to determine the effect of environmental performance, auditcommittee, profitability, Leverage, and company size to corporate social responsibility (CSR) disclosure in companies listed on the Indonesia Stock Exchange. Corporate Social Responsibility disclosure measured by CSR index based on the Global Reporting Initiative (GRI) G4. The population of this study are manufacturing company listed on IndonesianStock Exchange in 2016-2018. Data collected by documentation method and literature study. Sampling using purposive sampling method, and obtained 18 companies in each period. Sources of data obtained from annual reports of companies listed on Indonesia Stock Exchange in 2016-2018. The analytical method for this study uses multiple regression analysis with SPSS 16.The result of this study showed that environmental performance and company size has positiveeffect to CSR disclosure. Audit committee and profitability has not effect to CSR disclosure, while Leverage has negative effect to CSR disclosure.Keywords: Corporate Sosial Responsibility (CSR) Disclosure, environmental performance, auditcommittee, profitability, Leverage, and company size, Global Reporting Initiative (GRI) G4.
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Zhou and Cui. "Green Bonds, Corporate Performance, and Corporate Social Responsibility." Sustainability 11, no. 23 (December 3, 2019): 6881. http://dx.doi.org/10.3390/su11236881.
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Green bonds are a financial tool that has been vigorously promoted in the global green finance field in recent years. Since 2013, the global issuance of green bonds has seen explosive growth. China's green bond market has made great progress, rising to the top tier of global rankings. In this paper, Chinese listed companies that issue green bonds are used as the research object to explore the impact of green bond issuance on companies, including the impact of the announcement of green bond issuance on companies’ stock prices, as well as the impact of green bond issuance on companies’ financial performance and corporate social responsibility (CSR). The empirical results indicate that announcements of green bonds issuance have a positive impact not only on companies’ stock prices, companies' profitability, and operational performance, but also on innovation capacity, and can improve companies' CSR. Overall, the issuance of green bonds has a positive impact on companies, can contribute to environmental improvement, promotes CSR and value creation, and helps to attract investors to some extent.
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Bussoli, Candida, Danilo Conte, Graziana Letorri, and Marco Barone. "Does It Pay to Be Sustainable? Evidence from European Banks." International Journal of Business and Management 14, no. 1 (December 19, 2018): 128. http://dx.doi.org/10.5539/ijbm.v14n1p128.
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This paper aims to explore the relationship between the economic, environmental, social, and corporate governance component of Corporate Social Performance (CSP) and the Corporate Financial Performance (CFP) in the European banking sector. The empirical analyses, based on panel data, are performed on a sample of 70 listed European banks (EU28) over the period 2011-2015. The main results show a significant and positive relationship between the aggregated CSP measure and the average profitability of banks' assets and market capitalization. Furthermore, the social component positively affects the average return on assets and equity; the economic component is positively associated with the performance of prospective profitability and market capitalization; finally, the environmental component is positively associated with the ROAA. Sustainable banks, in line with the stakeholder Theory, through ethical and social policies, might increase their financial and economic performance.
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Agustami, Silviana, and Syarif Hidayat. "PENGARUH PROFIBILITAS DAN KINERJA LINGKUNGAN TERHADAP PENGUNGKAPAN TANGGUNG JAWAB SOSIAL." Jurnal Riset Akuntansi dan Keuangan 3, no. 3 (December 27, 2015): 753. http://dx.doi.org/10.17509/jrak.v3i3.6618.
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The pulp & paper industry in CSR disclosure has been heavily criticized because it often advertises itself but does not match performance. This research is generally intended to know the effect of profitability and environmental performance on the disclosure of social responsibility on the pulp & paper and wood industries listed on BEI 2010-2013. The research method used is the method of causality research using two data collection techniques, namely through literature review and secondary data collection. The results obtained are as follows: 1. Profitability in the pulp & paper and wood industry in BEI 2010-2013 is not good because the average every year always suffered losses, 2. Environmental performance in the pulp & paper and wood industry in BEI 2010-2013 Is good enough, 3. Disclosure of responsibility on pulp & paper and wood industry in BEI 2010-2013 is good enough, 4. There is a positive effect of profitability on corporate social responsibility disclosure, 5. There is a positive influence of environmental performance on the disclosure of social responsibility company. From these results can be concluded that based on regression calculation results obtained a positive effect between profitability and environmental performance on corporate social responsibility disclosure.
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Fitranita, Vika, and Indah Oktari Wijayanti. "PROFITABILITAS, UKURAN PERUSAHAAN, KINERJA LINGKUNGAN, PERTUMBUHAN PENJUALAN DAN LEVERAGE PADA PENGUNGKAPAN ISLAMIC CORPORATE SOCIAL REPORTING." JAF- Journal of Accounting and Finance 4, no. 1 (March 30, 2020): 29. http://dx.doi.org/10.25124/jaf.v4i1.2344.
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The purpose of this study is to examine the effect of profitability, company size, environmental performance, sales growth and leverage on the disclosure of Islamic Corporate Social Reporting. The population in this study are all companies listed on the Sharia Securities List during 2016-2018. The sample is determined by purposive sampling technique so that and data are analyzed using descriptive statistics and multiple linear regression analysis. Based on the partial test results show that profitability has no significant effect on the disclosure of Islamic Corporate Social Reporting (ICSR). Company size has no significant effect on the disclosure of Islamic Corporate Social Reporting (ICSR). The company's sales growth has no significant effect on the disclosure of Islamic Corporate Social Reporting (ICSR). The company's environmental performance has a significant effect on the disclosure of Islamic Corporate Social Reporting (ICSR) and leverage has a significant effect on the disclosure of Islamic Corporate Social Reporting (ICSR).
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Kim, Sang, and Zhichuan (Frank) Li. "Understanding the Impact of ESG Practices in Corporate Finance." Sustainability 13, no. 7 (March 27, 2021): 3746. http://dx.doi.org/10.3390/su13073746.
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This study examines the relationship between environmental, social, and governance (ESG) factors and corporate financial performance. Specifically, we study various individual ESG categories, both ESG strengths and concerns, and aggregate ESG factor and their impact on corporate financial performance including profitability and financial risk. We find a positive effect of ESG factors on corporate profitability, and the effect is more pronounced for larger firms. Among different ESG categories, corporate governance has the most significant impact, particularly for firms with weak governance. We also find that ESG variables generally have a positive influence on credit rating. In particular, the social factor has the most significant impact on credit rating, while environmental score surprisingly has a negative effect. Overall, this research provides a rationale for ESG integration in the context of investment management and portfolio construction to maximize value and minimize risk.
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Cho, Sang, Chune Chung, and Jason Young. "Study on the Relationship between CSR and Financial Performance." Sustainability 11, no. 2 (January 11, 2019): 343. http://dx.doi.org/10.3390/su11020343.
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This study analyzed whether a systematic relationship exists between corporate social responsibility (CSR) performance and corporate financial performance using 191 sample firms listed on the Korea Exchange. The Korea Economic Justice Institute (KEJI) index of 2015 was used to measure CSR performance; profitability and firm value were used to measure corporate financial performance. Return on assets was used as a proxy for profitability, and Tobin’s Q was used as a proxy for firm value. The correlation between these variables and CSR performance was examined through correlation and regression analysis. The results confirm that CSR performance has a partial positive correlation with profitability and firm value. These results are partly consistent with those of previous studies reporting a positive relationship between CSR and Korean firms’ financial performance using the KEJI index before 2011. In the relationship between CSR performance and profitability, only social contribution yields a statistically positive correlation. Analysis of the correlation between CSR performance and financial performance indicators revealed a positive relationship between the growth rate of total assets and corporate soundness and social contribution. Both soundness and social contribution showed a positive correlation with Tobin’s Q, the measure of corporate value.
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Bodhanwala, Shernaz, and Ruzbeh Bodhanwala. "Does corporate sustainability impact firm profitability? Evidence from India." Management Decision 56, no. 8 (August 13, 2018): 1734–47. http://dx.doi.org/10.1108/md-04-2017-0381.
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Purpose The purpose of this paper is to study whether corporate sustainability impacts profitability performance. Design/methodology/approach The sample under study consists of 58 Indian firms that are consistently a part of Thomson Reuters Asset 4 ESG database. An empirical multivariate panel data model is developed to analyse the impact of sustainability (environmental, social and governance) on firm profitability. Further, the study seeks to understand whether firms ranked high on sustainability parameters perform better compared to low-ranked firms. This has been tested by applying parametric t-test. Findings The study reveals a significant positive relationship between sustainability and firm performance measures (return on invested capital, return on equity, return on assets and earnings per share). Empirical evidence suggests that firms that practice remarkable sustainable development strategies report higher profitability and have substantially low gearing level. Research limitations/implications This study provides empirical support for the practitioners, policy makers and academicians emphasising strongly on the role played by deployment of sustainable environmental, social and governance efforts in enabling firms to achieve the profit maximisation objective. In the long term, strategies that take sustainability criteria into account have the capacity to create long-term value and provide firms with competitive advantage. The findings provide impetus to many mid- and large-capitalised Indian firms to initiate the adoption of sustainable measures in business policy formulation. The market valuation perception on sustainability practices followed by Indian firms leaves scope for future research. Originality/value Empirical evidence on the link between sustained sustainability efforts by corporates and their profitability from a developing nation context is limited. This paper provides much-needed evidence in the area of sustainability performance from India – one of the largest, rapidly developing economies in the world.
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Rosa Portella, Anastácia, and José Alonso Borba. "Environmental disclosure in corporate websites: a study in Brazil and USA companies." RAUSP Management Journal 55, no. 3 (May 4, 2020): 309–24. http://dx.doi.org/10.1108/rausp-07-2018-0053.
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Purpose The internet allows much corporate information to be instantly accessed from anywhere, at any time. To better inform the more diverse stakeholders, companies have used their websites as another tool for disclosure. The purpose of this paper is to contribute to the area of environmental accounting, as it investigates whether the companies located in different countries, from different sectors, in different stages of development and regulatory environments present different levels of environmental disclosure and to explain the environmental disclosure extension on corporate websites of companies in Brazil and the USA through corporate characteristics. Design/methodology/approach To achieve such purpose, an environmental disclosure index (EDI) was created and a model was used to investigate whether the variables environmental performance, size, profitability, debt, sector and country explain the disclosure on the website. Findings It was pointed that US companies stood out compared to Brazilian companies throughout the EDI. On the one hand, the statistical model suggests that the variables, namely, organization size, sector and country of origin of the company, explain the environmental disclosure in corporate website, whereas the profitability and debt variables were not significant in the model. On the other hand, the environmental performance variable proved to be significant; however, it was contrary to what was expected from the theory of legitimacy, once a negative relation between environmental disclosure and environmental performance is expected. Originality/value It is considered that transnational studies on corporate environmental responsibility can improve the understanding and eventually explain the difference of this disclosure.
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Ahmadi, Ali, and Abdelfettah Bouri. "The relationship between financial attributes, environmental performance and environmental disclosure." Management of Environmental Quality: An International Journal 28, no. 4 (June 12, 2017): 490–506. http://dx.doi.org/10.1108/meq-07-2015-0132.
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Purpose An increasing number of business organizations around the world are engaged in the accounting reporting on non-financial performance aspects, mainly within the field of environmental responsibility. The purpose of this paper is to assess the association between environmental disclosure and environmental performance and examine the financial attributes of companies using a composite disclosure index to investigate the status of the environmental disclosure practices of the top 40 companies operating in France. Design/methodology/approach The sample used in this study consists of the 40 largest companies operating in France (index CAC 40). Findings The findings of the study show that environmental disclosure is positively associated to environmental performance. Financial attributes, such as firm size, the need for capital, profitability and capital spending, are positively associated with environmental disclosure quality. Equally, a high quality of environmental disclosure will reflect the effectiveness of corporate governance and would tend to face fewer difficulties in accessing capital markets. The authors found that firms revealed on healthcare and gas oil business sector disclose more environmental information than other industries. Originality/value A web-based search was performed during the fourth quarter of 2014, locating the corporate websites of the sample firms. The sample period is 2011-2013 (108 firm-year observations).
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Fathi Alheet, Ahmad. "Exploring the Impact of Environmental Sustainability on Firm Performance in the Manufacturing Industry in Jordan." Business, Management and Economics Research, no. 58 (August 10, 2019): 110–17. http://dx.doi.org/10.32861/bmer.58.110.117.
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Environmental sustainability is an important component of a firm’s Corporate Social Responsibility. It relates to firm practices that ensure the conservation of the environment and natural resources, such as water, land and air. This research study aims to study the concept in relation to firm performance in Jordan. It proposes that environmental sustainability practices of a company in Jordan’s manufacturing industry positively influence its financial performance. For this purpose, the study assesses the relationship between environmental sustainability score and the profitability ratios. Results reveal a significant positive impact of sustainability score on the ROA of the companies. It is therefore recommended to manufacturing firms in Jordan to focus more on environmental CSR and sustainability practices, which would result in improved efficiency and profitability.
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Lestari, Rini, Fara Aisya Nadira, Nurleli Nurleli, and Helliana Helliana. "Pengaruh Penerapan Green Accounting Terhadap Tingkat Profitabilitas Perusahaan." Kajian Akuntansi 20, no. 2 (May 1, 2020): 124–31. http://dx.doi.org/10.29313/ka.v20i2.5990.
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Abstract. A manufacturing company in its growth can result in a positive or negativezimpactzon thezsurroundingzenvironment, from here develops accounting not only provide information about financial companies so appear a new term called green accounting. This study was conducted to determine thezapplicationzof greenzaccounting, company profitability, andzto test the application of green accounting to the level of profitability of companies in the manufacturing sector of the consumer goods industry. In this study, the application of green accounting is composed of two sub-variables: environmentalzperformancezandzenvironmentalzdisclosureztozthe level of profitability indicators ROA (Return on Assets). The method used in research method verification with a quantitative approach, Selected populations in this study were 42 companies manufacturing consumer goods industry sector listed in Indonesia Stock Exchange during the three years 2015-2017 by using purposive sampling method, in order to obtain a sample of 17 companies that meet the criteria. Data were analyzed using multiple regression. The results of this study indicate that the application of green accounting, as measured by the environmental performance affects the profitability level while the implementation of green accounting firm as measured by environmental disclosure did not affect the level of corporate profitability.Keywords: Environmental Performance, Application of Green Accounting, Environmental Disclosure, Corporate Profitability Levels. Abstrak. Perusahaan manufaktur dalam pertumbuhannya dapat menimbulkan dampak yang positif maupun dampak yang negatif terhadap lingkungan sekitarnya, dari sini berkembanglah akuntansi yang tidak hanya menyajikan informasi tentang keuangan perusahaan sehingga munculah istilah baru dalam akuntansi yang dinamakan green accounting. Penelitian ini dilakukan untuk mengetahui penerapan green accounting, tingkat profitabilitas perusahaan, dan menguji penerapan green accounting terhadapztingkatzprofitabilitaszperusahaanzpada perusahaan manufakturzsektor industrizbarangzkonsumsi. Dalam penelitian ini, penerapan green accounting terdiri dari dua sub variabel yaitu kinerja lingkungan dan pengungkapan lingkungan terhadap tingkat profitabilitas dengan indikator ROA (Return on Assets). Metodezpenelitianzyangzdigunakanzyaitu metode penelitan verifikatif denganzpendekatanzkuantitatif. Populasizyang dipilih padazpenelitianzini yaitu 42 perusahaanzmanufakturzsektor industri barangzkonsumsizyang listing dizBursazEfekzIndonesia selama 3 tahun padaztahun 2015-2017 dengan menggunakan metodezpurposivezsampling, sehingga diperoleh sampel 17 perusahaan yang memenuhi kriteria. Data dianalisis dengan menggunakan regresi berganda. Hasil penelitian ini menunjukkan bahwa penerapan green accounting yang diukurzdengan kinerja lingkungan berpengaruhzterhadap tingkat profitabilitaszperusahaan sedangkan penerapan green accounting yang diukur dengan pengungkapan lingkungan tidak berpengaruh terhadap tingkat profitabilitaszperusahaan.Kata Kunci: KinerjazLingkungan, Penerapan Green Accounting, PengungkapanzLingkungan, Tingkat ProfitabilitaszPerusahaan.
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Pareek, Ritu, Krishna Dayal Pandey, and Tarak Nath Sahu. "Corporate Governance, Firms’ Characteristics and Environmental Performance Disclosure Practices of Indian Companies." Indian Journal of Corporate Governance 12, no. 2 (November 4, 2019): 142–55. http://dx.doi.org/10.1177/0974686219881091.
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This study attempts to explore the effect of corporate governance parameters like board size and independent directors along with firm-specific characteristics such as age, size and profitability on the environmental performance disclosure of 38 National Stock Exchange (NSE) listed Indian non-financial companies for the period of 2013–2017. This study uses panel data analysis and finally documents a positive impact of board size and age of firm on the environmental performance disclosures of Indian companies. The study also finds a significant and negative effect of board independence on the environmental performance disclosure of such companies. The study based on its findings questions the role of independent directors as an internal regulatory body and suggests external regulatory specifications for better environmental performance and its disclosure to the public.
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Shen, Jianfei, and Yidan Chen. "Environmental Information Disclosure and Financial Performance – Empirical Evidence from Heavily Polluting Industries in China." E3S Web of Conferences 261 (2021): 04038. http://dx.doi.org/10.1051/e3sconf/202126104038.
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Focusing on the quality of corporate environmental accounting information disclosure (EID), this paper attempts to explore the impact of financial performance on environmental information disclosure. We take listed companies in Chinese heavily polluting industries as the research object, and construct a multiple regression model for data analysis via SPSS. According to Chinese practice, we divide the financial indicators into four areas: solvency, operating capacity, profitability and development capacity, and select four indicators to represent them. The empirical results show that net working capital, current asset turnover and equity growth rate are positively correlated with EID, and return on total assets is negatively correlated with EID. This result means that the solvency, operating ability and development ability in financial performance can promote the improvement of EID, but profitability cannot.
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Lu, Jihai, Sohail Ahmad Javeed, Rashid Latief, Tao Jiang, and Tze San Ong. "The Moderating Role of Corporate Social Responsibility in the Association of Internal Corporate Governance and Profitability; Evidence from Pakistan." International Journal of Environmental Research and Public Health 18, no. 11 (May 28, 2021): 5830. http://dx.doi.org/10.3390/ijerph18115830.
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At present, climate and other environmental problems are arising because of the development of the industrial sector at a large level. The industrial sector is supposed to be a major cause of climate change problems that lead to global warming. Therefore, corporate social responsibility (CSR) with the help of corporate governance is an imperative approach to control these social problems. Consequently, in the context of the organizational and management theory, agency theory, and the stakeholder theory, this study focuses on important factors of internal corporate governance such as chief executive officer (CEO) power, the board size, independence, ownership concentration, managerial ownership, and audit quality for improving the profitability of firms. Moreover, this study considers corporate social responsibility as a controlling and moderating factor for firm performance and internal corporate governance. We employed ordinary least square (OLS) for endogeneity testing, fixed effect (FE), generalized method of moments (GMM), and feasible generalized least square (FGLS) on data of Pakistani firms for the period of 2010–2019. The results of this study demonstrate the following outcomes: firstly, all internal corporate governance factors are positively linked with firm performance; secondly, corporate social responsibility (CSR) is the most valuable tool for improving profitability. Importantly, this study suggests that all internal corporate governance factors are positively linked with firm performance because of the interactive role of corporate social responsibility (CSR). This study practically contributes to the literature by suggesting the imperative role of corporate social responsibility (CSR) for internal corporate governance, which may help to reduce climate and social problems.
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Jamali, Hisnol. "Banking Governance, Financial Performance and Corporate Social Responsibility." Jurnal Manajemen 24, no. 3 (October 1, 2020): 497. http://dx.doi.org/10.24912/jm.v24i3.681.
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A sample of 37 banks is believed to have gained enough information during 2015-2019 to analyze the bank on the Indonesian Stock Exchange, up to 185. The use of the chow test explains if the modeling is a fixed effects model, so the information obtained is more accurate. This study confirms that if a large of board size affects the ability to monitor business operations properly, CSR disclosure may be higher. Apparently, every board meeting is discussed on CSR disclosures. In fact, independent commissioners or non-executive directors trigger CSR disclosure. Later, the financial performance component stated that increased leverage affected low CSR while on the other hand high company size and profitability resulted in better CSR disclosure. Operating banking is not only profitable but requires active participation shown to stakeholders and environmental concern as it ensures continuity of operations so that the bank is a system unit of the surrounding social system.
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Permatasari, Paulina. "Hubungan Kausalitas antara Kinerja Sosial dan Ekonomi Perusahaan." TRIKONOMIKA 12, no. 1 (June 26, 2013): 93. http://dx.doi.org/10.23969/trikonomika.v12i1.465.
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The purpose of this study is to investigate the causality of relationship between the corporate economic performance and corporate social performance and also to get a picture about disclosure of Corporate Social Reporting (CSR) performance of companies in Indonesia that have deployed and published Standalone Sustainability Reports, and/or has disclosed Social and Environmental Responsibility or Sustainability in Annual Report, and the company website. The variables used to measure corporate economic performance are company size, profitability, leverage, and growth. The corporate social performance is measured by using an CSR disclosure index. The Causality relationship between corporate economic and social performance is based on the Slack Resource Theory and Good Management Theory. As the pilot study, a sample of 34 companies listed on JSX is taken using stratified random sampling method with 2010 data as the focus of the report analysis. The result of this study shows that there’s no significant relationship between Corporate Economic and Corporate Social Performance. The study also shows the low level of corporate disclosure of CSR.
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Martins, Adelaide, Delfina Gomes, and Manuel Castelo Branco. "Managing Corporate Social and Environmental Disclosure: An Accountability vs. Impression Management Framework." Sustainability 13, no. 1 (December 30, 2020): 296. http://dx.doi.org/10.3390/su13010296.
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Institutional environment demands from organizations to be accountable for their social and environmental actions and to provide information allowing the assessment of their long-term prospects for profitability may lead organizations to adopt Impression Management (IM) tactics to manage perceptions. Consequently, organizations may provide accounts demonstrating that they are good corporate citizens and possess the intangible assets required for future good financial performance. Although organizations have increased their corporate social reporting, the quality and reliability of those reports have been questioned. The literature suggests that these disclosures tend to be selective and biased, and do not enhance corporate accountability. This study proposes a formal conceptual framework linking IM, social and environmental accountability, financial performance, and organizational legitimacy. The arguments in this study are of economic, societal, and ethical concern, as IM behaviors may undermine the transparency of social and environmental reporting, and the decoupling between the economic and social image offered by companies through reporting and the reality. These insights also point at the complexities for organizations in dealing with accountability to all stakeholders. The conceptual framework proposed is useful for future studies aiming at understanding how organizations use IM in their corporate social reporting in the accountability process.
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Ansaram, Karishma, and Neeveditah Pariag-Maraye. "Modelling the Impact of Responsibility Levels on Corporate Financial Performance: The Case of Top 100 Firms in Mauritius." Business and Economic Research 8, no. 3 (August 4, 2018): 118. http://dx.doi.org/10.5296/ber.v8i3.13468.
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The objective of this paper is to investigate the relationship between Corporate Social Responsibility (CSR) levels and the financial performance of Top 100 firms in Mauritius post the implementation of the mandatory CSR levy in 2009. Both qualitative and quantitative assessment of disclosures in the annual reports of the top 100 companies for the period 2010-2014. A CSR index based on Carroll’s (1979) CSR pyramid was constructed which was used to rate their CSR disclosure levels as per the five dimensions; economic, legal, ethical, environmental and social responsibility. The scores computed were then regressed against the profitability levels to depict any correlation between the variables. The study revealed mixed results for the responsibility levels and financial performance. A positive relationship was noted in case of economic responsibility, negative relationship for legal and ethical responsibility while the social, environmental and responsibility levels generated an insignificant relationship with the profitability level of the top 100 firms.
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Reniati, Rulyanti Susi Wardhani, Murtiadi Awaluddin,. "Financial Performance and Corporate Social Responsibility on Return of Shares." Jurnal Akuntansi 23, no. 3 (January 20, 2020): 409. http://dx.doi.org/10.24912/ja.v23i3.611.
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The purpose of this study is to test the hypothesis of the influence of independent variables namely ROI, ROE, EPS, DER, CSR while the dependent variable is Stock Return. This research approach is a fixed effect approach, general effects, and random effects approach. The sample used in this study was 19 Manufacturing Companies listed on the Indonesia Stock Exchange for the 2015-2018 period. The results showed that ROI, ROE, EPS, and DER partially did not affect Stock Return, while CSR partially affected stock returns on Manufacturing Companies listed on the Indonesia Stock Exchange for the 2015-2018 period. This means that the companies sampled in this study stated that CSR is a form of commitment in improving welfare through social and environmental responsibility, CSR also provides long-term benefits by increasing the company's reputation and branding, efficiency, internal party appreciation, and strong profitability.
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Kartikasari, Dwi, and Nur Salina. "PENGARUH PENGUNGKAPAN PROGRAM CORPORATE SOCIAL RESPONSIBILITY TERHADAP PROFITABILITAS PERUSAHAAN." JURNAL AKUNTANSI, EKONOMI dan MANAJEMEN BISNIS 5, no. 2 (December 15, 2017): 193. http://dx.doi.org/10.30871/jaemb.v5i2.353.
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This study aims to determine the relationship between items in the disclosure of Corporate Social Responsibility (CSR) to profitability The company measured through Return On Assets and Net Profit Margin. Data analysis method used in this research is data panel regression. Data used in this research is secondary data by analyzing annual report and company financial report in 2014 and 2015. The result of research indicate that there is only one item of CSR that have significant influence Against Return On Assets (ROA) is an indicator of social society. While for the NPM variable there are only environmental performance indicators that have a significant influence on Net Profit Margin (NPM).
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Luke, Oluwagbuyi Olusola, and Anthony Olugbenga Adaramola. "Triple Bottom Line Reporting: An Assessment of Sustainability in Banking Industry in Nigeria." Asian Journal of Finance & Accounting 5, no. 2 (September 26, 2013): 127. http://dx.doi.org/10.5296/ajfa.v5i2.4121.
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Triple bottom-line reporting is an emerging issue in accounting profession in Nigeria that aims at assessing and enhancing corporate performance with regards to sustainability. It widens the scope of traditional reporting which emphasises financial profitability. It considers the contributions of a corporate organisation towards the environmental and social sustainability thereby giving more attention to stake holders than shareholders. The primary objective of this study is to investigate whether triple bottom line reporting contributes significantly to sustainability of banking firms in Nigeria. In our analysis of data, the descriptive statistical analysis was used to evaluate the study. 400 questionnaires were administered on the senior and management members of staff in the 22 banks in Nigeria after re-consolidation. The data were analysed using chi-square statistical techniques. Also, annual reports of the 22 banks spanning from 2009-2011 were examined. The findings show that emphasis is still on financial profitability of the banking industry in Nigeria. The study hereby recommends that for sustainability to be enhanced in banking industry in Nigeria, adequate attention should be given to the environmental and social sustainability to complement financial profitability.
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Siminica, Marian, Mirela Cristea, Mirela Sichigea, Gratiela Georgiana Noja, and Ion Anghel. "Well-Governed Sustainability and Financial Performance: A New Integrative Approach." Sustainability 11, no. 17 (August 22, 2019): 4562. http://dx.doi.org/10.3390/su11174562.
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This study investigates the interlinkages between the dimensions of corporate social responsibility (CSR-economic, environmental, social), financial performance (ROA, ROE), and corporate governance (CG), by applying the structural equation modeling technique (SEM). It is based on a sample of 614 large companies from the European Economic Area, covering specific indicators published by the Thomson Reuters database, for the years 2013–2017. The equation models are structured starting from isolated dependencies between variables, up to the global ones (direct, indirect, and total dependencies). The mixed results obtained imply that the nature and heterogenous content of CSR lead to different statistical dependencies for each of the two financial performance indicators. ROA is positively influenced by the economic dimension of CSR, but, the level of this rate does not necessarily contribute to an increase in the involvement of the company in this type of CSR actions. At the same time, ROA is influenced and affects in a negative way the environmental and social dimensions of CSR. In the case of ROE, it is influenced and impacts the economic and social dimensions in a positive way. The environmental dimension of CSR influences ROE positively, but it is negatively affected by this profitability rate. Corporate governance exerts a positive impact on all of the model’s variables, both as a direct and indirect factor of influence.
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Phan, Thi Thu Hien, Hiep Xuan Tran, Trung Thanh Le, Ninh Nguyen, Simon Pervan, and Manh Dung Tran. "The Relationship between Sustainable Development Practices and Financial Performance: A Case Study of Textile Firms in Vietnam." Sustainability 12, no. 15 (July 23, 2020): 5930. http://dx.doi.org/10.3390/su12155930.
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Sustainable development practices have become very important for firms to go beyond short-term profitability, towards economic, environmental and social sustainability. This research aims to examine the relationship between a firm’s sustainable development practices and its financial performance. Modelled as a multidimensional construct, sustainable development practices are represented by environmental practices, social practices in the workplace and social practices in the community, while financial performance is determined by profitability and growth. Using a mixed method survey, data were obtained from 389 textile firms in Vietnam, where there is a dire need to promote sustainable and environmental practices. Data analysis using partial least squares structural equation modeling demonstrates that sustainable development practices positively affect financial performance directly and indirectly via customer loyalty, employee satisfaction and corporate reputation. The findings also reveal the moderating role of entrepreneurial orientation, whereby the impact of sustainable development practices on financial performance is stronger for firms that are more innovative, proactive and willing to take risks. Taken together, these findings provide support for firms to holistically implement sustainable development practices and adopt an entrepreneurial orientation.
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Valdez Juárez, Luis Enrique. "Corporate Social Responsibility: Its Effect on SMEs." Journal of Management and Sustainability 7, no. 3 (August 2, 2017): 75. http://dx.doi.org/10.5539/jms.v7n3p75.
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In recent times, small and medium-sized companies (SMEs) have focused their activities on short-term financial results. Corporate social responsibility (CSR) is among the organizational practices currently being adopted by companies to increase their competitiveness. While some companies implement CSR out of curiosity or because it is aligned with their true social vocation, most embrace it to increase economic and financial performance. Whereas some theories support CSR practices and assert the great benefits these activities can yield, other theories state that management should not allocate resources to CSR actions. Focusing on SMEs, the present study sought to examine the effects of CSR on profitability from three perspectives: the social, the environmental, and the economic dimensions of social responsibility. The sample for this study included 81 companies in the industrial (54.3%) and services (45.7%) sectors operating in the south of the state of Sonora (Mexico). Data collection was carried out from August to November, 2013, and used a self-directed survey administered to company managers. Results were analyzed and validated using a variance-based statistical technique focused on structural equation models (SEM); the structured relationships were validated by partial least square (PLS) modeling using the SmartPLS Professional software (version 3.2.6). Our findings provide evidence that social and economic CSR activities have a positive influence on profitability in SMEs. This study contributes to the development of the main literature on CSR practices in their social, environmental, and economic dimensions: firm theory, sustainability theory, and stakeholder theory.
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Wasara, Tafadzwa Mark, and Fortune Ganda. "The Relationship between Corporate Sustainability Disclosure and Firm Financial Performance in Johannesburg Stock Exchange (JSE) Listed Mining Companies." Sustainability 11, no. 16 (August 20, 2019): 4496. http://dx.doi.org/10.3390/su11164496.
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Whether corporate sustainability disclosure (CSD) affects profitability remains indistinct to many firms. This paper examines the relationship between corporate sustainability disclosure and return on investment. The sample of this study consisted of ten Johannesburg Stock Exchange (JSE)-listed mining companies, and the data was extracted from sustainability reports for a period of five years from 2010 to 2014. In this regard, data collection was undertaken by the adoption of a content analysis approach. A multi-regression analysis was used to analyze the relationship between environmental disclosure and return on investment. The same statistical mechanism was employed to determine the association involving social disclosure and return on investment. Results show that there is a negative relationship between environmental disclosure and return on investment. On the other hand, the research reveals that there is also a positive association between social disclosure and return on investment. This implies that an increase in corporate reporting of social issues results in heightened financial performance through an increase in return on investment. This study recommends the adoption of corporate social disclosure as it will encourage firms to be socially responsible, while also generating financial benefits. Further studies can be conducted about the change from voluntary corporate social disclosure to mandatory disclosure.
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Otero-González, Luis, Pablo Durán-Santomil, Luis-Ignacio Rodríguez-Gil, and Rubén Lado-Sestayo. "Does a Company’s Profitability Influence the Level of CSR Development?" Sustainability 13, no. 6 (March 17, 2021): 3304. http://dx.doi.org/10.3390/su13063304.
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The objective of this paper is to analyze the effect of economic and financial performance on Corporate Social Responsibility (CSR). For this reason, we have used the data from a sample made up of 662 companies, 146 registered as medium-sized or large and 516 as small or micro, highlighting the significant weight of small companies in the sample. CSR has been measured using an indicator estimated from the data gathered by way of a questionnaire containing information related with the economic, environmental, and social dimensions. The analysis has been conducted by estimating panel regression models with robust errors. The results show a negative relationship between economic performance and more CSR activities implemented, supporting the Managerial Opportunism Hypothesis. Furthermore, large companies under the pressure of stakeholders are more prone to implementing certain CSR actions than small ones, meaning that a minimum size is essential according to this research.
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Homayoun, Saeid, Zabihollah Rezaee, and Zahra Ahmadi. "Corporate Social Responsibility and Its Relevance to Accounting." Journal of Sustainable Development 8, no. 9 (November 29, 2015): 178. http://dx.doi.org/10.5539/jsd.v8n9p178.
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Corporate social responsibility (CSR) has been extensively and inconclusively debated in the literature. In this essay, we examine the development of CSR by both reviewing the evolution of the conceptual framework and models of CSR and discussing social responsibility accounting and auditing. We conclude that both business and academic communities worldwide should pay closer attention to CSR and its components of economic, social, and environmental performance. Business organizations worldwide are just starting to recognize the importance of quality as it relates to CSR and the link between profitability and social behavior. Justifications for CSR are fulfilling moral obligations, maintaining a good reputation, ensuring sustainability and licensing to operate, and creating shared value for all corporate stakeholders.
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Zhao, Changhong, Yu Guo, Jiahai Yuan, Mengya Wu, Daiyu Li, Yiou Zhou, and Jiangang Kang. "ESG and Corporate Financial Performance: Empirical Evidence from China’s Listed Power Generation Companies." Sustainability 10, no. 8 (July 25, 2018): 2607. http://dx.doi.org/10.3390/su10082607.
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Nowadays, listed companies around the world are shifting from short-term goals of maximizing profits to long-term sustainable environmental, social, and governance (ESG) goals. People have come to realize that ESG has become an important source of the corporate risk and may affect the company’s financial performance and profitability. Recent research shows that good ESG performance could improve the financial performance in some countries. Yet, the question of “how does ESG affect financial performance” has not been thoroughly discussed and studied in China. In this article, we study China’s listed power generation groups to explore the relationship between ESG performance and financial indicators in the energy power market based on the panel regression model. The results show that good ESG performance can indeed improve financial performance, which has significant meanings for investors, company management, decisionmakers, and industry regulators.
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Molnar, Margit. "Revitalizing China’s Economy by Improved Corporate Governance and State-Owned Enterprise Reforms." Journal of International Commerce, Economics and Policy 08, no. 03 (October 2017): 1750015. http://dx.doi.org/10.1142/s1793993317500156.
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With persisting slower growth worldwide and in China, over-capacity in some heavy industry sectors, declining profitability, and intensifying competition from other, lower-cost emerging economies, corporate behavior in China needs to change and focus more on efficiency and sustainability. A larger proportion of firms, including state-owned enterprises, should improve corporate governance practices. To this end, fraudulent corporate practices must be halted and State assets need to be better managed. Reforms are under way or envisaged that will help improve corporate performance and, more broadly, deliver more resilient and environmentally sustainable growth and continuing progress in living standards.
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Rizk, Mona Fathi, Hayah Mohamed Abouelnaga, and Sahar Ahmed Fallatah. "A Proposed Framework to Integrate Sustainability into Industrial Small to Medium Business Practices: Challenges and Expectations. A Field Study on Saudi Business Organization." International Journal of Scientific Research and Management 8, no. 01 (January 9, 2020): 1471–92. http://dx.doi.org/10.18535/ijsrm/v8i01.em01.
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Purpose: Corporate Performance Evaluation Program (PROPER) has some objectives such as curbing carbon emissions. This program evaluates and assigns ratings to the companies' performance in managing environment. This study aims to (1) examine the effects of environmental performance (PROPER rating) on Carbon Emissions Disclosure (CED); and (2) identify the determinants of PROPER rating. Results: Reckoning with carbon emissions checklist from Carbon Disclosure Project (CDP), data are gathered from 144 firms. The average of CED among Indonesian manufacturing companies is still relatively low (24%). Path analysis shows that CED is influenced by PROPER rating and Board Size, but not by Leverage and Profitability. Conclusion: Board Size and Profitability are important determinants of PROPER rating, but Leverage and Company Size are not. PROPER is considered effective to improve companies’ transparency in managing carbon emissions among Indonesian manufacturing companies.
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Athar, Hafiz Muhammad, and Sumayya Chughtai. "Impact of Bank-Specific, Corporate Governance and Environmental Factors on Bank Efficiency and Profitability in Pakistan." Journal of Applied Economics and Business Studies 5, no. 2 (June 30, 2021): 69–86. http://dx.doi.org/10.34260/jaebs.525.
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The study aims to investigate the impact of bank-specific, board structure, gender diversity, and environmental factors on bank efficiency and profitability in Pakistan by taking a sample of seventeen commercial banks for the period 2013-2018. Data envelopment analysis (DEA) and return on assets (ROA) are used as a proxy to measure bank efficiency and profitability. Panel estimation techniques and Generalized Method of Moments (GMM) are used to conceptualize the research framework and to test the hypotheses. The findings indicate a negative relationship of non-performing loans, advances, level of involvement of women into other committees, and CSR index with ROA; while more presence of women on board reveals a positive and significant impact on ROA that is consistent with critical mass theory. However, CEO duality shed a positive impact on technical efficiency; while bank size signifies an inverse relationship with ROA and technical efficiency. Moreover, deposit influences ROA positively; while board size finds a positive and significant relationship with ROA and technical efficiency. The findings are important for various stakeholders as they can efficiently take their decision-making to better understand the factors influence bank performance. This study recommends future researchers do the same research by inculcating a larger sample size.
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Khattak, Muhammad Sualeh, Muhammad Anwar, and Thomas Clauß. "The Role of Entrepreneurial Finance in Corporate Social Responsibility and New Venture Performance in an Emerging Market." Journal of Entrepreneurship 30, no. 2 (June 23, 2021): 336–66. http://dx.doi.org/10.1177/09713557211025655.
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Corporate social responsibility (CSR) has over the past decades transformed from a philanthropic attribute to something compulsory. It has become the imperative duty of organisations, irrespective of their size, nature of business and age. However, because of poor financial capabilities and lack of support, newly established ventures too often fail to voluntarily participate in social and environmental activities. This is one reason why national governments have initiated various programs and policies to encourage CSR and environmental activities in new ventures. However, previous studies have yet to fully reveal the effects of entrepreneurial finance on CSR and the environmental, financial and innovative performance of newly established ventures. To fill this gap, we used a survey to gather empirical evidence from 255 newly established ventures. The results indicate that entrepreneurial finance directly contributes to financial performance, while indirectly contributing to environmental and innovative performance through CSR. Our research recommends that new ventures efficiently utilise entrepreneurial finance to configure CSR activities that achieve high profitability, and environmental and innovative performance. Moreover, our research encourages governments to make financial loans to ventures engaged in social and environmental activities to help them reach their sustainable development goals.
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Omar, Bilal Fayiz, and Nidal Omar Zallom. "Corporate social responsibility and market value: evidence from Jordan." Journal of Financial Reporting and Accounting 14, no. 1 (July 4, 2016): 2–29. http://dx.doi.org/10.1108/jfra-11-2014-0084.
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Purpose This study aims to investigate the relationship between different themes of corporate social responsibility (CSR) and companies’ market value (measured by Tobin Q) for Jordanian firms listed on the Amman Stock Exchange (ASE) for the period 2006-2010. Design/methodology/approach The annual reports of 26 companies on the ASE for the years 2006-2010 were selected for this study. Three industrial sectors were chosen: chemical; food and beverage; and pharmaceutical and medical (P&M). The CSR is measured by constructing an index consisting of four themes which are as follows: environmental 9 items; human resources 16 items; community 7 items; and products 7 items. The study adopts Tobin Q as the dependent variable to measure the market value of corporations. Two control variables were included in the regression analysis for their possible effects on the CSR and company’s market value relationship: size and leverage. This study performs a multiple regression analysis model to test the effect of the four CSR themes: environmental, human resources, community and products on the market value measured by Tobin Q. Findings The results revealed that environmental, community and product activities decreased market value in the food and beverage industry, while human resources activities had no effect on market value in the same industry. Moreover, the community theme was found to have a negative effect on market value in the P&M industry, while the three other themes were found to have no effect on market value in the same industry. The four themes had no effect on market value in the chemical industry. Research limitations/implications The current study has a number of limitations, which have implications for future research. First, the study focused only on three industrial sectors (chemical, food and beverage and P&M), which limited the results to only these industries. In addition, the CSR concept and its effect on profitability is an important issue for the financial and services sectors. Hence, it would be beneficial to investigate the CSR impact on profitability for the financial and services sectors. Moreover, the study focused only on one country, Jordan. An extension of this study could be a comparison of the CSR effect on financial performance between Jordan and other countries in the Middle East. Furthermore, the measurement of CSR is subject to criticism because it might generate bias according to subjective judgments about CSR items. The CSR items are equally weighted, which might not be acceptable because their nature and effect differ among industries. However, introducing qualitative measures for CSR that reflect various perspectives about CSR practices and implications is essential. Finally, the period chosen for this study includes the years of global financial crisis as well which had eroded the market value of many firms in different industries, and this may form a prominent limitation of this study. Practical implications The results of this study have given evidence of the role of CSR in Jordan. The investments in the CSR field could negatively affect or could have no effect on market value. Overall, regulators in Jordan should pay attention to the costs and benefits of CSR among companies. Companies will be encouraged to invest in CSR activities if the benefits on their financial performance exceed the costs (cost-benefit theory). Specifically, companies should select types of CSR activities that enhance their competiveness in the society. Social implications The results of this study provide practical implications to several users in the chemical, food and beverage and P&M industries. Managers, investors and other users may pay attention to the impact of CSR strategies on the company’s market value. For example, food and beverage managers may decrease their CSR investments around environmental, community and product activities because these decrease the market value and profitability of the company. However, the CSR investment in human resources does not affect the profitability in this industry. For the chemical industry, managers may not focus on CSR investments in the different activities (environmental, human resources, community and products) because these have no impact on the company’s market value. In regards to the P&M industry, managers may decrease their CSR investments around community activities because this decreases the market value. However, managers may not be concerned with CSR investments in environmental, human resources and products activities because these do not affect the company’s market value. Originality/value The relationship between CSR and a company’s financial performance has been tested broadly in the financial and management fields without any conclusive results. Some explanations for the inconclusive results are discussed. Inoue and Lee (2011, p. 791) noted three main issues that remain unresolved in the studies regarding the relationship between CSR and a company’s performance: using samples for different industries, using cross sectional observations and using aggregate CSR dimensions. The current study overcomes the main problems in the previous discussion. In particular, the study will focus on specific industries (chemical, food and beverage and P&M). In addition, the study will use multidimensional CSR measures. Moreover, financial performance will be measured by a single measure (market value) instead of using different measures of financial performance.
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Pertiwi Lolo, Yunita Easty, and Willy Sri Yuliandhari. "The Effect of Profitability, Liquidity and Solvency on Corporate Social Responsibility." JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi) 4, no. 3 (December 16, 2020): 465–72. http://dx.doi.org/10.36555/jasa.v4i3.1408.
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CSR is an obligation of a company that not only provides the needs of the community but also pays attention how to maintain environmental quality positively contributing to the communities in which the company operates. Because it is a index Sri-Kehati generally consists of companies that are already stable and have good performance. With increasing public awareness of the company’s environment, it is demanded to have responsibility for operational activities carried out not only by focusing on the profits generated, howover, based on a survey conducted at the Research Center for Governance, Institutions, and National University Singapore (NUS) Business School shows lack of companies understanding of CSR practices especially in Indonesia (CNN Indonesia, 2016).
The purpose of this research is to find out several factors that influence CSR practices so that the variable in this study are CSR disclosure and the independent variables are profitability (net profit margin), liquidity (current ratio) and solvency (debt to total asset). The sample of this study was 60 sample consisting of companies listed on the Sri-Kehati index in the 2015-2018 using data panel regretion with the help of Eviews10 application with quantitative methods. The result of this study indicate that simultaneous profitability (net profit margin), liquidity (current ratio), and solvency (debt to total asset) affect CSR disclosure. Partially profitability (net profit margin), liquidity (current ratio, and solvency (debt to total asset ratio) affects the disclosure of CSR with the ability of independent variables explain the dependent variable at 66,51%. The company is expected to be able to control the use of debt of a source of funding and reduce the use of expenses so that operational activities do not depend on debt.
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Yoo, Jae Mee, Woojae Choi, and Mi Lim Chon. "Do Employees Matter in the Relationship between Corporate Social Responsibility and Financial Performance?" Sustainability 11, no. 22 (November 7, 2019): 6251. http://dx.doi.org/10.3390/su11226251.
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This study investigated the mechanism behind the impact of corporate social responsibility (CSR) on firms’ financial performance while focusing on internal stakeholders. Although many studies have examined the effects of CSR few has empirically investigated the underlying process of the mechanism. In addition, previous research has rarely regarded employees as a link between CSR and firms’ outcomes, despite employees implementing CSR policies. This study explored the pathway of the CSR-employees-firm’s performance. Employee commitment was used to explain the relationship between CSR and performance, since it is an important employee-associated micro-level outcome of CSR. The results showed that CSR indirectly influenced a firm’s accounting profitability through enhanced employee commitment, as well as directly affected firm’s profitability. CSR increases employee commitment, which in turn leads to improvements in a firm’s accounting returns. The paper suggests that employees should be considered as an important agent for the effects of CSR initiatives.
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Semenova, Natalia, and Lars G. Hassel. "The moderating effects of environmental risk of the industry on the relationship between corporate environmental and financial performance." Journal of Applied Accounting Research 17, no. 1 (February 8, 2016): 97–114. http://dx.doi.org/10.1108/jaar-09-2013-0071.
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Purpose – Industries differ in their environmental impacts, such as emissions, water and energy use, fuel consumption and hazardous wastes, which will have implications for how environmental performance translates to operating performance and market value at company level. By incorporating industry-specific differences of environmental impacts, this paper includes industry-level environmental risk as a moderating factor on the relationship between two indicators of corporate environmental performance (CEP) (management and policy) and corporate financial performance (profitability and market value). The paper aims to discuss these issues. Design/methodology/approach – Using panel data of US companies across all industries, the paper empirically tests a regression model, which includes an interaction effect representing both the form and strength of dependency of CEP on the environmental risk of the industry. The paper adopts the natural resource based theory to argue that financial returns are a decreasing function of CEP in high environmental impact industries, where environmental spending beyond compliance is costly and there is not much opportunity for consumer orientation. Findings – The results show that environmental management has different impacts on operating performance at high and low environmental risk of the industry (form of relationship) while environmental policy (reporting) has a stronger signal on market premium in industries with low rather than high environmental risk (strength of relationship). Differences in both form and strength of moderating effects are demonstrated. Research limitations/implications – Further research can introduce other industry-specific moderating factors, such as the disclosure maturity of the industry and the institutionalization of environmental disclosures across boarders in the industries, in order to explore the complexity of the relationship. Practical implications – The results of the paper are relevant to investors, company managers and a broad group of stakeholders when considering both industry- and company-level environmental risks. Originality/value – Previous studies have relied on controlling for industry membership. This paper uses an industry-specific environmental variable, environmental risk of the industry, to examine the form and strength of moderating effects.
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Krause, Josef. "Relationship between the Voluntary Instrument of CSR in the Textile Industry in the Czech Republic and Financial Performance." Fibres and Textiles in Eastern Europe 26, no. 5(131) (October 31, 2018): 8–12. http://dx.doi.org/10.5604/01.3001.0012.2524.
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The paper deals with the relationship between an environmentally friendly approach on the part of companies and financial performance. The paper emphasises that corporate social responsibility is an important issue in the strategic management of companies. The paper examines companies in the textile industry with an environmentally friendly certification in the Czech Republic, and then compares their indicator of profitability with companies in the textile industry without this chosen certification. The Wilcoxon test and t-test are used for the comparison. No statistically significant differences are confirmed. The limitations of the research are also discussed in the article.
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Worimegbe, Temitope Mariam. "Impact of environmental cost on the profitability of quoted manufacturing companies in Nigeria." Independent Journal of Management & Production 12, no. 5 (August 1, 2021): 1518–36. http://dx.doi.org/10.14807/ijmp.v12i5.1428.
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Corporate involvement in environmental initiatives and reporting is essential for increasing and sustaining performance in a dynamic and changing environment. However, this involvement in environmental activities is not without costs implication. Hence, business managers tend to sacrifice engaging and reporting environmental initiatives for economic benefits. This study examined the impact of environmental costs on the profitability of quoted manufacturing companies from 2007 to 2017. The study used the ex-post facto research design. Twenty mentioned manufacturing companies were purposively drawn from the population of sixty manufacturing companies listed on the floor of the Nigerian Stock Exchange. The study variables were sourced from the annual reports and accounts as well as the stand-alone environmental information of the selected companies over eleven years from 2007-2017. The cost incurred on environmental initiatives to the community and training of employees on environmental concerns were used as proxies for environmental cost. At the same time, the DuPont return on equity was proxy for profitability. The findings from the panel random-effect regression analysis showed that asset use efficiency (F = 3.368, p = .01) and equity multiplier (F = 3.3301, p = .01) were significantly influenced by environmental cost; while operating efficiency (F= 0.5158, p = .72) was not significantly impacted by environmental cost at 5% level of significance. As such, in this study, the asset use efficiency and equity multiplier are the main drivers of a significant increase in the return on equity of quoted manufacturing companies in Nigeria from 2007 to 2017. The study, therefore, concluded that environmental costs significantly affect the profitability of quoted manufacturing companies in Nigeria.
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Min, Maung, Francois Desmoulins-Lebeault, and Mark Esposito. "Should pharmaceutical companies engage in corporate social responsibility?" Journal of Management Development 36, no. 1 (February 13, 2017): 58–70. http://dx.doi.org/10.1108/jmd-09-2014-0103.
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Purpose The purpose of this paper is to investigate whether corporate social responsibility (CSR) really adds value to corporate financial performance (CFP) in the pharmaceutical industry. Most pharmaceutical companies currently practice CSR by taking a “triple bottom line” approach of environmental, social, and economic strategies to manage their businesses and produce an overall positive impact. Design/methodology/approach A survey was developed based on professional experience, Carroll’s construct, the study’s hypotheses, and industry studies. The survey, composed of 45 questions using a seven-point Likert scale, was conducted among pharmaceutical professionals to evaluate whether CSR affects performance. Responses totaling 140, including 20 companies, were coded, taking into account the respondent’s corporate position and firm size. Findings Survey respondents strongly agreed that CSR adds value to CFP and should be viewed as a long-term investment. CSR programs should be implemented regardless of company size. CSR is effective because it invests in stakeholder management, such as with customers, government, investors, and activists, creating positive relationships which improve reputation and profitability. Research limitations/implications This perception study shows the need for further quantitative analysis of CSR and CFP metrics specific to the pharmaceutical industry. Practical implications CSR programs should be implemented regardless of company size, and sheer size does not dictate whether CSR programs can be successful. This paper also sheds light on potential managerial implications that originate from these findings that may help pharmaceutical companies manage their scarce resources more effectively. Social implications In today’s competitive economic environment, where increasingly stakeholders including investors scrutinize pharmaceutical firms’ environmental and social performance, CSR is a crucial strategy. The findings can help corporate managers make strategic CSR decisions to optimize benefits for their organization. Originality/value While numerous studies have addressed the link between CSR and corporate performance across industries, definitive studies have not examined the pharmaceutical industry.
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P., Fahad, and Showkat Ahmad Busru. "CSR disclosure and firm performance: evidence from an emerging market." Corporate Governance: The International Journal of Business in Society 21, no. 4 (January 25, 2021): 553–68. http://dx.doi.org/10.1108/cg-05-2020-0201.
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Purpose This study aims to investigate the effect of corporate social responsibility (CSR) disclosure on firm performance, considering both firm profitability and firm value in an emerging market, India. Design/methodology/approach The study examines the effect of CSR disclosure on firm performance using panel regressions for the final sample that consists of 386 companies listed in the BSE 500 index, India. It covers all major players in the capital market for ten years from 2007–2016. Findings The result shows a trend toward the negative effect of CSR disclosure on firm profitability and firm value in India; this negative effect is mainly influenced by environmental disclosure score and social disclosure score. An adverse effect of firm profitability and firm value on CSR disclosure is also observed to underline the inverse relationship. Practical implications The study provides implications to consumers, investors, managers and policymakers. Firstly, consumers have to be more aware of CSR initiatives of companies, and they should support those companies to do more. Secondly, investors can use the ESG disclosure score as a signal for the level of CSR activities, which negatively affects firm performance. Thirdly, managers have to consider CSR more seriously and spend CSR amount wisely after proper research and not just to meet the mandatory limit. In addition, managers have to take necessary actions to make the public aware of the CSR activities of the company to gain an advantage in the future. Finally, policymakers have to give more emphasis on the promotion of CSR activities to reach the ultimate consumers who lie in the remote areas of the country, and more awareness has to be given to them regarding CSR activities. Originality/value The findings contribute to the literature by providing insights on CSR disclosure and firm performance relationship in India, an emerging market with increasing international attention where such studies are scant and less clear, especially after the amendments in the Companies Act, 2013. Furthermore, the measurement of CSR disclosure using environmental, social and governance (ESG) score is novel in the Indian context.
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Jing, Shiyin, Yanbin Li, and Yulong Sun. "R & D Attention and Profit Performance—An Empirical Study on Listed Companies in China’s Electric Power and Electrical Industries." Sustainability 13, no. 15 (July 27, 2021): 8387. http://dx.doi.org/10.3390/su13158387.
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The electric power and electric industries are basic and strategic emerging industries in China’s national economy. Based on the data of listed companies in China’s electric power and electric industries from 2015 to 2019, this paper empirically studies the impact of research and development (R & D) attention on corporate profitability. The results show that attention to R & D by listed companies in electric power and electric industries will significantly improve enterprise’s profit performance, and this kind of effect has yearly heterogeneity. From 2015 to 2017, R & D attention gradually improved the profit performance of enterprises, but the profit spillover effect of R & D investment in recent years needs to be further strengthened. Further study found that R & D attention has a significant effect on corporate profitability in the private enterprise group, the R & D attention of state-owned enterprises and R & D structure adjustment should be paid more attention; R & D investment can significantly improve the profitability of the electrical industry, but the promotion effect was relatively slow in recent years, and R & D investment has a significant effect on the profitability of listed companies in the electric power industry. Although the promotion effect is not obvious, it shows a steady improvement trend. After variable and model replacement, the empirical regression conclusion of this paper is still robust. The results of this paper help to deepen the understanding of the stage characteristics of the impact of R & D attention on profit performance, and it is of great significance to optimize the efficiency of R & D investment and pay attention to the adjustment of R & D structure in the electric power and electrical industries.
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Hazarika, Natasha. "R&D Intensity and Its Curvilinear Relationship with Firm Profitability: Perspective from the Alternative Energy Sector." Sustainability 13, no. 9 (April 30, 2021): 5060. http://dx.doi.org/10.3390/su13095060.
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There is an inconclusive debate concerning the relationship between environmental research and development (R&D) and corporate financial performance (CFP). The debate becomes more complex because a win–win situation between environmental and financial goals is not as plausible in practice as it is in theory. Though arguments have been made that when time-lag is considered, the relationship can produce positive outcomes for both entities, ambiguities persist because linear models dominate this analysis. This study, therefore, empirically tested the existence of a curvilinear relationship between R&D intensity and CFP in the context of the alternative energy sector. Using a panel dataset of 24 companies and 232 unbalanced firm-year observations for 10 years, it was found that after passing the inflection points, investment in R&D reaps financial benefits that will eventually offset the cost of the initial investment. The curvilinear relationship of R&D intensity on return on sales and net profit margin is strongly supported.
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Galindo-Manrique, Alicia Fernanda, Esteban Pérez-Calderón, and Martha del Pilar Rodríguez-García. "Eco-Efficiency and Stock Market Volatility: Emerging Markets Analysis." Administrative Sciences 11, no. 2 (April 6, 2021): 36. http://dx.doi.org/10.3390/admsci11020036.
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Climate change, the accelerated industrialization of emerging countries, as well as the growing demand for transparency from stakeholders, are all factors that influence the environmental performance of companies. Thus, eco-efficient behavior can improve financial performance by increasing wealth generation and decreasing the volatility of listed financial assets. There is a lot of previous literature showing diverse results of the effect of eco-efficiency on corporate profitability, but this is not the case when we refer to risk. This study analyzes the relationship between eco-efficient behavior and the share price volatility of companies traded in emerging markets. For this purpose, a sample of 346 companies listed in 24 countries was studied for the period between 2010 and 2017. The results show a positive effect. Thus, the recommendation is that a clear commitment to eco-efficient investment can improve the environmental impact of companies, from the private, public, and institutional spheres.