Do investors penalize the firms disclosing higher environmental performance? a cross cultural evidence

Qureshi, Muhammad Azeem; Ahsan, Tanveer

doi:10.1007/s11356-022-19716-8

Cited by 8 publications

(3 citation statements)

References 42 publications

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“…Most of the literature makes use of competing measures of FP to gauge how FP responds to changes in EP. The most popular accounting-based measure to establish the EP-FP causal relationship, is Return on Assets (ROA), also used by Choi et al (2010); Qureshi and Ahsan (2022) or Lahouel et al (2022). Return on Equity (ROE) has also been used in many studies, e.g.…”

Section: Variables Employed In Prior Researchmentioning

confidence: 99%

Paying or Being Paid to Be Green?

2023

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Section: Variables Employed In Prior Researchmentioning

confidence: 99%

Paying or Being Paid to Be Green?

2023

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“…Similarly, Auer and Schuhmacher (2016) investigated the impact of investing in stocks of pro-ESG enterprises on portfolio returns mostly in Asia Pacific, United States and Europe. Similarly, Auer and Schuhmacher (2016) investigated the impact of investing in stocks of pro-ESG enterprises on portfolio returns mostly in Asia Pacific, United States, Europe, and their findings show that ESGdriven investments outperform the market in the United States and Asia Pacific area (Qureshi and Ahsan, 2022). Friede et al (2015) did a thorough systematic assessment of the literature and discovered that the association between CPF and ESGP is well-grounded.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Higher expected returns for investors in the energy sector in Europe using an ESG strategy

Wanday

Zein

2022

Front. Environ. Sci.

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The energy sector is transforming as new regulations are set in place to take into account the environmental and social factors as well as corporate governance initiatives which can be integrated within organisations. Companies are pushing towards having better environmental, social and governance (ESG) scores as it impacts shareholders, investors, employees, customers amongst many others. The methodology used in this paper is quantitative and includes an analysis of the financial performance of publicly listed companies using return on equity, return on assets, return on sales, return on investment and also used the SARIMA (seasonal autoregressive integrated moving average) model to forecast revenues for the companies included in the research. The aim of this study is to investigate the impact of ESG activities within companies and how it affects investor returns. Considering regional and sectoral effects an observation of a positive relationship between ESG and investor returns is identified.

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“…, 2016; Chui et al. , 2002) and firm value (Qureshi and Ahsan, 2022). However, the literature overlooks the cultural context while investigating the impact of policy uncertainty on corporate decision-making (Galariotis and Karagiannis, 2021).…”

Section: Introductionmentioning

confidence: 99%

The relevance of national culture to policy uncertainty and firm performance: European evidence

Ahsan

Qureshi²,

Gull

et al. 2022

JES

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PurposeThe purpose of this study is to investigate the impact of policy uncertainty on firm performance and to examine how the different cultural societies deal with the policy-induced uncertainty.Design/methodology/approachThe authors use data of European non-financial firms to extend the growing literature on policy uncertainty, firm performance and national culture. The authors consider financial as well as market proxies to measure firm performance and use Hofstede's cultural dimensions as a proxy for national culture. The authors apply the generalized method of moments (GMM-system) regression technique on a dataset of 702 non-financial European firms, listed during the period 2002–2018.FindingsThe authors find overwhelming evidence that policy uncertainty reduces the performance of the European firms; however, cultural differences among different European countries moderate the impact of policy uncertainty on the financial as well as the market performance of the firms. The results of this study show that European cultures with high power distance, individualism, masculinity and indulgence efficiently deal with the economic policy uncertainty. While the European societies with high uncertainty avoidance fail to cope with policy-induced uncertainty. The results are robust to different regression models, alternate proxies of firm performance and endogeneity issues.Practical implicationsThe authors argue that policy uncertainty increases information asymmetry and decreases firm performance, therefore, the policymakers shall be considerate of the consequences of the policy-induced uncertainty in the society and business arena that would not only adversely affect the firms but also the economy.Originality/valueTo the best of the authors' knowledge, this is the first study that investigates the role of national culture on the relationship between policy uncertainty and firm performance in the European context.

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Do investors penalize the firms disclosing higher environmental performance? a cross cultural evidence

Cited by 8 publications

References 42 publications

Paying or Being Paid to Be Green?

Paying or Being Paid to Be Green?

Higher expected returns for investors in the energy sector in Europe using an ESG strategy

The relevance of national culture to policy uncertainty and firm performance: European evidence

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