An empirical study of supply chain sustainability with financial performances of Indian firms

Sachin, Nikunj; Rajesh, R.

doi:10.1007/s10668-021-01717-1

Cited by 71 publications

(44 citation statements)

References 46 publications

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“…These values are substantially higher than those reported by similar past studies. For example, Sachin and Rajesh (2021) examine the impact of ESG score on ROA and ROE using path analysis and find R 2 values ranging from 0.25 to 0.70. Using a linear regression model to examine the impact of ESG score on Tobin’s Q for 356 European companies, Nirino et al (2021) find an R 2 value of 0.38.…”

Section: Resultsmentioning

confidence: 99%

“…First, prior studies on the relationship between ESG ratings and financial performance provide mixed evidence. Sachin and Rajesh (2021) examine whether implementing ESG practices would help firms achieve financial benefits [return on assets (ROA) and return on equity (ROE)] and competitive advantage. The authors fail to find any significant connection between Bloomberg’s ESG ratings and financial performance and conclude that benefits from ESG ratings do not occur in the short-term.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

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Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings

Eng

Fikru

Vichitsarawong

2021

SAMPJ

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Purpose The purpose of this paper is to examine the impact of sustainability disclosures and disclosure ratings on firm value. This paper compares the informativeness of sustainability disclosures in company reports versus environmental, social and governance (ESG) disclosure ratings. The authors examine the extent to which they provide incremental information. Design/methodology/approach The sample consists of panel data from over 2,600 publicly-listed non-financial US companies for the period 2014–2018. The authors obtain sustainability disclosures from Sustainability Accounting Standards Board (SASB) Navigator and ESG disclosure scores from Bloomberg. The authors regress market value and/or stock price on sustainability disclosures and ESG scores to evaluate information content. Findings ESG scores are positively associated with market value and price. Sustainability disclosures in the form of metrics and company-tailored narratives provide incremental information content on market value and/or price. Boilerplate disclosures reduce market value and price. Sustainability disclosures and ESG scores provide incremental information, suggesting that it would be beneficial to harmonize standards for reporting sustainability disclosures. Research limitations/implications The limitation is that the authors have only considered sustainability disclosures for a sample of US companies from two sources – SASB Navigator and Bloomberg. Practical implications The paper provides some evidence that may be pertinent to the debate on whether to harmonize the guidance on reporting sustainability issues. Social implications The paper provides evidence on the benefits to firms for reporting sustainability issues. Originality/value This paper is among the first to analyze company sustainability disclosures obtained from two different sources – SASB Navigator and ESG disclosure ratings – and compare them for relevance for company valuation. With SASB Navigator, the authors obtain further refinement into the nature of the information provided in the sustainability disclosures, that is, boilerplate, company-tailored or metrics disclosures.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings

Eng

Fikru

Vichitsarawong

2021

SAMPJ

View full text Add to dashboard Cite

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“…ROA i,t+j = β 0 + β 1 ROA i,t + β 2 ESG i,t + θX i,t + ∑ Year + ∑ Ind + ε i,t (6) where, j = 1, 2, 3, 4, 5; θ = (θ 1 , θ 2 , θ 3 , θ 4 , θ 5 , θ 6 ), X i,t = (X1 i,t , X2 i,t , X3 i,t , X4 i,t , X5 i,t , X6 i,t ).…”

Section: The Long-term Impact Of Esg Fulfillment On Roamentioning

confidence: 99%

“…For many years, the relationship between ESG responsible investment and financial performance has been the focus of debate in academia. A series of research results found that ESG responsible investment can improve financial performance, and there is a significant positive correlation between the two [1][2][3], while some studies shows that ESG responsible investment will deteriorate financial performance, and there is a negative correlation between the two [4,5], ESG responsible investment will not have a positive impact on the company's financial performance within five years [6]. Some scholars believe that the relationship between ESG responsible investment and financial performance is vague, contradictory, and uncertain [7][8][9], ESG varies greatly among different industry sectors and different financial variables [10].…”

Section: Introductionmentioning

confidence: 99%

Fulfillment of ESG Responsibilities and Firm Performance: A Zero-Sum Game or Mutually Beneficial

et al. 2021

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Focusing on the 311 Chinese firms listed in the global markets from 2008 to 2019, based on the trade-off theory and the resource slack theory, using panel vector autoregressive model and panel threshold model, this paper explores the impact of fulfilling ESG responsibility on firm performance. The study reveals that in the short run, fulfilling ESG responsibility presents a “Substitution Effect,” whereas, in the long run, it presents a “Promotional Effect.” On the other hand, the improvement of firm performance has a significantly positive impact on ESG fulfillment investment, even though there is a strong hysteresis effect. Significant heterogeneity exists regarding the relationship between ESG fulfillment and firm performance. ESG fulfillment has a negative impact on firm performance in the short run, with the most affected firms being those small and mid-sized firms listed in the Mainland China markets. In the near term, the impact of firm performance on ESG fulfillment is positive, with those listed in the overseas markets and large firms being affected the most. The study reveals that firm size and the factors affiliated with ESG fulfillment tend to cause the differentiation effect in the inhibitory influence of ESG fulfillment on firm performance in the short run. This study could be used as a guideline for the social responsibilities of nonprofit organizations.

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“…Most studies on ESG scores have so far focused on developed countries, such as the U.S. and other advanced countries in Europe [14,15]. Studies that concentrate on emerging markets are still limited [16][17][18]. Emerging markets such as China are still in the early stages of economic development.…”

Section: Introductionmentioning

confidence: 99%

The Effects of ESG Combined Score on Business Performance of Enterprises in the Transportation Industry

Pham

Tran

et al. 2022

Sustainability

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A plethora of present studies has the purpose of analyzing the connection related to the effect of environmental, social, and governance (ESG) on business performance. However, it has still not been able to bring out comprehensive results because of using a single metric to measure performance. Due to that, this research will: (i) use the data envelopment analysis (DEA) method to measure transportation firms’ performance and (ii) use OLS regression to explore the relationship between ESG combined score and business performance. In the first stage, we found out that 43 out of 56 firms work inefficiently. The managers of those companies should utilize their resources and refer to the benchmarking as a sample to follow. The environmental and social scores positively affect business performance in the second stage. Thus, managers should consider ESG as an investment, primarily when transportation is categorized as an “environmentally sensitive industry”. Besides, investors should pay more attention to a company that has ESG activities because that firm has the chance to improve its business performance and deal with its commitments.

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An empirical study of supply chain sustainability with financial performances of Indian firms

Cited by 71 publications

References 46 publications

Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings

Comparing the informativeness of sustainability disclosures versus ESG disclosure ratings

Fulfillment of ESG Responsibilities and Firm Performance: A Zero-Sum Game or Mutually Beneficial

The Effects of ESG Combined Score on Business Performance of Enterprises in the Transportation Industry

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