Corporate sustainability on financial performance
226368557
The Effect of Corporate Sustainability On Financial Performance In Cosmetic Companies Listed In Indonesia Stock Exchange
The purpose of this research is to test and analyze how environmental performance and corporate social responsibility disclosure influences the financial performance of cosmetics companies in Indonesia. This research uses a quantitative approach. A subject in this research was cosmetics companies listed on the Indonesia stock exchange period 2011 2018. Data presented in the form of descriptive statistics and produce six companies and 36 samples.This research uses multiple linear regression analysis. The result shows that environmental performance has a positive influence on the financial performance of corporations. An additional finding shows that CSR disclosure has a positive impact on financial performance indicates that CSR is a form of transparent form of behavior, and ethical was an image of corporate sustainability. CSR can enhance company sustainability in the future.
Windah Alfianah Wiwiek Dianawati
217264981
The impact of corporate sustainability on financial performance
Absalamova Zainab Sadrutdinovna Absalamova Zainab
216421393
Exploring the Impact of Sustainability on Corporate Financial Performance Using Discriminant Analysis
The impact of sustainability on corporate financial performance has been an important subject of both academic and professional debate since the 1990s. However, there is a lack of consensus in the literature, and studies from developing countries remain scarce. Accordingly, this study uses discriminant analysis to shed light on the variables that discriminate between sustainable and non sustainable companies using the companies included in Borsa Istanbul (BIST100) (Istanbul Stock Exchange) and the Borsa Istanbul Sustainability Index for a three year period. Financial and market variables are used in the analysis. Financial variables include the return on equity (ROE) return on assets (ROA) leverage ratios, and company size. The analysis also incorporates market variables such as alpha, beta, volatility, earnings per share, and the price to book ratio. The results show that the relationship between sustainability and performance is significantly influenced by the company size, leverage, volatility, and price to book ratio. The large companies are considered to be more sustainable as their commitment is well recognized. In this way, they attract more investors. Therefore, their stock prices are less volatile and achieve a better price to book ratio. They obtain easy access to external financing compared to companies considered to be non sustainable. Moreover, they are less volatile in the market and better valued by investors.
Ayse Irem Keskin Banu Dincer Caner Dincer
216245975
Modelling the impact of corporate sustainability on economic performance with reference to Indian financial industry
Corporate sustainability is a buzzword these days and is instrumental in achieving a comparative advantage by the corporates. The study intends to study the influence of corporate sustainability on economic performance concerning the Indian banking industry. Structural equation modelling, a multivariate technique, is employed in this study to measure the relationship between corporate sustainability and economic performance. Results show the significant but moderate positive relationship between economic performance and corporate sustainability. The findings would be beneficial to the experts in the allocation of limited resources to improve the corporate sustainability performance of firms, particularly in the Indian banking sector.
Sahil Gupta Geetika Sharma
169782190
The Effect of Corporate Sustainability Practices on Financial Performance: Evidence From Turkey
In this chapter, the impact of corporate sustainability practices (CSP) on corporate financial performance (CFP) is investigated in terms of Turkish manufacturing industry. In this context, 16 sustainable companies vs. 21 control companies in 2016 and 16 sustainable companies vs. 24 control companies in 2017 are examined. Thirty seven financial performance variables within seven groups are used, and non parametric Mann Whitney U test is applied. In 2016, four out of seven significant variables point out that sustainable companies perform better than control sample; however, in 2017, three out of four significant variables indicate the opposite. Therefore, the results are mixed, and it is concluded that implementing environmental, social, and governance (ESG) criteria do not have a noticeable positive effect on financial performances of manufacturing industry companies, at least in the short term. The Effect of Corporate Sustainability Practices on Financial Performance: Evidence From Turkey
Ibrahim Yasar Gok Ozan Cagatay Ozdemir Bugra Unlu
219467934
Corporate Sustainability Reporting and Financial Performance
In the past few decades, business performance has been approached from a multidimensional perspective, because a pro active corporate sustainability reporting system for assessing the financial performance of an organization should at least address impacts at the organization and community levels, as well as the resulting associated social impacts. The purpose of this research was to identify the accessibility of corporate sustainability reporting instruments for Romanian managers and their role in increasing the financial performance of organizations. This study concludes that corporate social reporting indicators can be integrated into the reporting of the financial performance of a company and can transform sustainability into tangible value for all interested parties. In addition, the empirical results contribute to the understanding of corporate social responsibility practices; although being non financial, these seem to be financially meaningful at a certain level after other financial factors are controlled for.
Ionica Oncioiu Anca Gabriela Petrescu Florentina Raluca Bilcan Marius Petrescu Delia Mioara Popescu Elena Anghel
229020610
Do Corporate Sustainability and Sustainable Finance Generate Better Financial Performance? A Review and Meta analysis
Sustainability in business and ESG in finance has entered the mainstream and has generated thousands of research articles that analyze its correlation with financial performance. We surveyed 1,141 primary peer reviewed papers and 27 meta reviews (based on ~1,400 underlying studies) published between 2015 and 2020. We reviewed three types of studies: corporate, investor, and thematic (e.g. climate change) An ordinal choice regression model showed that the type of study explains the inconsistent conclusions in prior reviews regarding whether it "pays to be good." Our data demonstrates that higher ESG is associated with better financial performance in corporate focused studies (58% 7 of studies were positive) Investor focused studies find that ESG investing is comparable or preferable to conventional investing in 86% 6 of studies (with one in three studies indicating superior performance) Thematic studies were rarely represented in top finance journals, but capture aspects missed by other sustainability research. We found evidence that positive results dominate for recent climate change studies (N=59) 87% and 94% of investor and corporate focused studies, respectively, showed neutral/mixed to positive interpretations regarding financial performance. We also employed a Bayesian random effects model to summarize 15 recent, quantitative meta analyses (covering studies between 1976 and 2018) which estimated a partial correlation coefficient between ESG and financial performance of 0.05 to 0.13. We conclude with six propositions. Some are practical: ESG integration as a strategy appears to perform better than screening or divestment. Others are timely: ESG investing can provide benefits during a social or economic crisis.
Ulrich Atz Tracy Van Holt Zongyuan Zoe Liu
214706303
Relationship between Corporate Governance, Corporate Sustainability and Financial Performance
This study aims to investigate three crucial questions. First, whether the corporate governance and corporate sustainability leads to improved firm financial performance or not? Second, whether the sound corporate governance practices improve firm sustainable performance or not? Third, whether the corporate sustainability mediates the relationship between corporate governance and firm performance or not? We used the sample 425 firms listed on Australian Securities Exchange (ASX) Using structural equation modeling approach, we find that corporate governance is positively linked to corporate sustainability performance, and corporate sustainability performance leads to improved financial performance. We also find that corporate sustainability performance mediates the link between corporate governance and financial performance. These findings are important for two aspects. The first is for firms' management, the regulators, policymakers in promoting corporate governance and corporate sustainability practices. Second, our study provides empirical support to current policy debate that investing in good governance and better sustainability practices is vital for long term value creation.
Asma Munir
229457686
The Effect of Green Accounting on Corporate Sustainability and Financial Performance
I Dewa Made Endiana Ni Luh Gd Mahayu Dicriyani Santana Putra Adiyadnya I Putu Mega Juli Semara Putra
218932567
Corporate Sustainability and Financial Performance of Banks in Muslim Economies: The Role of Institutions
Journal of Public Affairs
Mudeer Ahmed Khattak