Business sustainability performance and corporate financial performance: the mediating role of optimal investment

Poursoleyman, Ehsan; Mansourfar, Gholamreza; Homayoun, Saeid; Rezaee, Zabihollah

doi:10.1108/mf-01-2021-0040

Cited by 20 publications

(14 citation statements)

References 62 publications

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“…Also, the Variance Inflation Factor (VIF) values are placed between 0 and 10, indicating that multicollinearity will not cause a problem for the study. This is consistent with previous studies utilising VIF (Poursoleyman et al, 2022).…”

Section: Empirical Results and Discussion 41 Descriptive Statistics A...supporting

confidence: 94%

Does the gender of board members influence the choice of sustainability report format of listed firms? Empirical evidence from India

Oware

Amoako

Halidu

2022

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PurposeThis study examines the effect of gender board characteristics on the choice of sustainability report format in India. A sustainability report covers the environmental and social impacts of firms. It is presented either as an integrated report with the rest of the financial reporting to stakeholders or a separate document (stand-alone) with the advantage of communicating better information.Design/methodology/approachThe study uses an inclusive sample of 800 firm-year observations between 2010 and 2019. The study applies the binary probit and the instrumental variable probit regressions to analyse the data from the Indian Stock Exchange.FindingsThe authors find that female chief executive officers (CEOs) are more likely to choose stand-alone reports over integrated reporting. The authors also find that female CEOs with a duality role are insignificant in choosing between integrated reporting and stand-alone sustainability reporting. Furthermore, the study shows that gender board diversity (percentage of women over total board size) and females of two or less are insignificant. However, three or more females on the board significantly and positively affect stand-alone sustainability reporting. Similarly, independent female directors are more likely to choose stand-alone reporting over integrated reporting. Policymakers must encourage sensitive environmental firms to employ more female CEOs over male CEOs because female CEOs are more likely to adopt stand-alone sustainability reporting.Originality/valueThe authors’ study adds novelty to research because previous studies have only examined a female CEO and sustainability. However, this study is the first to investigate female CEOs' and female board members' choice of sustainability report format.

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Section: Empirical Results and Discussion 41 Descriptive Statistics A...supporting

confidence: 94%

Does the gender of board members influence the choice of sustainability report format of listed firms? Empirical evidence from India

Oware

Amoako

Halidu

2022

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“…Following the relevant literature (e.g., Chen et al, 2018; Clarkson et al, 2008, 2019; Li et al, 2020; Lins et al, 2017; Poursoleyman, Mansourfar, Homayoun, et al, 2022; Ting, 2021; Zhang et al, 2020), we include several control variables, including cash balances ( Cash ), firm size ( Size ), property, plant and equipment ( PPE ), financial leverage or debt ratio ( FinLev ), firm age ( Age ), research and development intensity ( R&DInt ), capital expenditure ( CapExp ), and selling, general, and administrative expenditure ( SGAExp ). These variables are defined in the Appendix A.…”

Section: Methodsmentioning

confidence: 99%

Corporate social responsibility and COVID‐19: Prior reporting experience and assurance

Poursoleyman

Mansourfar

Nazari

et al. 2022

Business Ethics Env & Resp

Self Cite

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The novel COVID‐19 has created an exogenous shock to capital markets and, hence, an ideal opportunity for researchers to assess whether CSR‐related activities provide an insurance‐like mechanism to protect firms against the shock. Using a large sample of 4361 firms domiciled in 40 countries, we investigate the roles of CSR reporting and assurance in the negative consequences of COVID‐19 on firm value. The results confirm that prior CSR reporting experience buffers firms against the adverse effects of the health crisis. The results also support that not only does the assurance on CSR reports create a buffering effect against the health crisis, but it also intensifies the buffering effects of prior CSR reporting experience against the pandemic. Moreover, using difference‐in‐difference method for testing the link between CSR reporting and firm value, we show that the positive association of reporting and assurance with firm value is more pronounced during the pandemic as compared with the years preceding it. The results of this study are robust to various analyses. Replicating the analyses to the context of the global financial crisis, we find that prior CSR reporting experience and assurance provide similar buffering effects when a market is exposed to various exogenous shocks. The results also hold for the mandatory disclosure regimes. By distinguishing first and subsequent reports and assurance, we show that, unlike subsequent CSR reports and assurance, the initial ones cannot mitigate the negative effects of the crisis on firm value, indicating that stakeholders take into account longer‐term CSR reporting experiences. Aside from reporting and assurance aspects of CSR, we analyze the role of CSR report's quality and accuracy and show that the adoption of Global Reporting Initiatives (GRI) frameworks can enhance socially responsible firms' resilience against systematic shocks.

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“…3.1 Variable construction 3.1.1 Dependent variable. Following Poursoleyman et al (2022), we use binary variables collected from ASSET4 to measure SRA. To this end, we use the items of CGVSDP026 and CGVSDP030 for SRA, respectively.…”

Section: Methodsmentioning

confidence: 99%

“…Finally, we use profitability ( ROA ) to control the concern that profitable firms are more likely to invest in sustainability and SRA activities because of their financial capabilities. Following Poursoleyman et al (2022), Liang and Renneboog (2017) and Cheung et al (2018), we use four other control variables. GDPGr shows the annual growth of GDP per capita and controls for the effect that richer countries are more likely to be concerned about sustainability issues (Rezaee et al , 2023).…”

Section: Methodsmentioning

confidence: 99%

Business sustainability reporting and assurance and sustainable development goals

Rezaee

Homayoun

Rezaee

et al. 2023

MAJ

Self Cite

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Purpose This paper aims to examine the association between sustainable development goals (SDGs) at the micro level and firms’ inclination to sustainability reporting and assurance (SRA). Design/methodology/approach The authors use global data from 44 countries in the 2016–2021 period and perform the probit and logistic models in testing the hypotheses. Findings The results show that socially responsible firms adopting SDGs are more likely to issue sustainability reports and obtain assurance statements. The authors find that the link between firms’ compliance with SDGs and SRA is stronger for firms domiciled in stakeholder-oriented countries. Originality/value SRA issues are gaining the attention of regulators, investors, businesses and academics worldwide. Results pertaining to the relationship between SDGs and SRA are robust to alternative measures and several sensitivity tests and, thus, provide policy, practice and research implications.

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Business sustainability performance and corporate financial performance: the mediating role of optimal investment

Cited by 20 publications

References 62 publications

Does the gender of board members influence the choice of sustainability report format of listed firms? Empirical evidence from India

Does the gender of board members influence the choice of sustainability report format of listed firms? Empirical evidence from India

Corporate social responsibility and COVID‐19: Prior reporting experience and assurance

Business sustainability reporting and assurance and sustainable development goals

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