Does the Level of Intellectual Capital Affect Meeting the Information Needs of Social Media Users in the Field of Sustainability? The Case of the World’s Largest Energy Industry Companies

Bryl, Łukasz; Fijałkowska, Justyna; Hadro, Dominika

doi:10.34190/eckm.23.1.464

Cited by 4 publications

(5 citation statements)

References 19 publications

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“…As a response, lenders could introduce debt covenants and restrictions, leading to higher agency costs and debt pricing consequently (Muttakin et al, 2020). By providing detailed information, companies can reduce both agency costs and information asymmetry between managers and lenders which results in reduced cost of debt (La Rosa et al, 2018;Bryl and Fijałkowska, 2020). Cheng et al (2014) and Asimakopoulos et al (2021) advocate the beneficial effect of ESG on reducing information asymmetry, and as a consequent debt pricing.…”

Section: Literature Review and Hypotheses Development 21 Theoretical ...mentioning

confidence: 99%

“…Firstly, our study is among the first to establish that sustainable practices, proxied by ESG scores, induce a higher debt capital, suggesting that the use of free cash flow on sustainability initiatives would further enhance the leverage decisions of the firms. Secondly, unlike past studies that focused on the cost of capital (Gerwanski, 2020; Gracia and Siregar, 2021; Eliwa et al , 2021; Muttakin et al , 2020; Bryl and Fijałkowska, 2020), we examine whether ESG performance affects capital structure patterns (i.e. leverage).…”

Section: Introductionmentioning

confidence: 99%

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Capital structure and speed of adjustment: the impact of environmental, social and governance (ESG) performance

Adeneye

Kammoun²,

Wahab³

2022

SAMPJ

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Purpose This study aims to examine the impact of sustainable practices as proxied by the environmental, social and governance (ESG) score on capital structure. It also investigates whether ESG performance influences the speed of adjustment (SOA) to target leverage in firms. Design/methodology/approach The sample covers 116 non-financial firms listed on the main stock exchanges from five Southeast ASEAN countries (Bursa Malaysia, Indonesia Stock Exchange, Philippines Stock Exchange, Singapore Stock Exchange and Stock Exchange of Thailand) over the period 2012–2019. The study adopts the OLS regression and system-GMM estimators to perform the data analysis. Findings The authors show that the ESG score is positively associated with book leverage, suggesting that firms increase their debt capital through sustainable practices. However, they find that the ESG score is negatively associated with market leverage across our model estimations. The authors also reveal that environmental, social and governance pillar scores produce about 7.82%, 2.88% and 0.47% SOAs, respectively, higher than the SOA of the traditional SOA without the ESG factor. The aggregate ESG score has about 3.41% SOA higher than the baseline SOA without the ESG factor. Practical implications This study is of interest to investors, corporate firms and policymakers. The study demonstrates that the ESG score increases the firm’s SOA to target leverage. By disaggregating the ESG score, the authors establish that ESG pillar scores produce higher SOAs than the traditional SOA (without ESG), with the environmental score inducing the fastest SOA. Practically, the study implies that environmentally sustainable activities reduce environmental transaction costs, benefit firms through better information transparency and enhance a trustful climate between the firm and suppliers of capital. Therefore, this study demonstrates that firms do not only incur the cost of disseminating ESG information but also benefit from lower information asymmetry and a higher SOA with better tax-deductible advantages. Social implications The findings have combined advantages for both stakeholders and directors who monitor and manage the firms’ resources to improve the quality of ESG practices and initiatives. Originality/value To the best of the authors’ knowledge, this study is among the first to establish that sustainable practices induce higher debt capital. Secondly, unlike prior research focusing on the cost of capital, the authors examine whether ESG performance affects capital structure patterns. Thirdly, it documents the extent to which sustainable practices influence the SOA towards target leverage in firms. The authors contribute to corporate finance literature that firms reach faster to their target leverage in the presence of ESG performance. Theoretically, through the notion of the stakeholder proposition, the study establishes that the firms’ pursuance of stakeholder goals further enhances the prediction of the trade-off theory.

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Section: Literature Review and Hypotheses Development 21 Theoretical ...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Capital structure and speed of adjustment: the impact of environmental, social and governance (ESG) performance

Adeneye

Kammoun²,

Wahab³

2022

SAMPJ

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“…Internal and external ICD (group A4): it groups all the studies which have been devoted to the disclosure of IC. From the analysis of this literature, we can indicate the following, but not exhaustive, proposals for future research:The association between IC disclosure and firm reputation;The role of technology on IC disclosure (Bryl and Fijał kowska, 2020);The determinants that facilitate and/or hind the voluntary disclosure of IC;The impact of IC management on disclosure;How the IC disclosure changes across sectors and countries;The moderating factors in the disclosure of IC…”

Section: Discussionmentioning

confidence: 99%

Intellectual capital between measurement and reporting: a structured literature review

Paoloni

Modaffari

Ricci

et al. 2022

JIC

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PurposeIn the past decade, intellectual capital (IC) measurement and reporting have been feeding scientific debate; however, only few studies address these issues together. The present research aims to provide an integrated view of the topics covered by the existing literature and to highlight the emerging research trends and set the agenda for future research.Design/methodology/approachThis study develops a structured literature review (SLR) of the extant research concerned with IC measurement and reporting, using a comprehensive sample of 1,021 articles extracted from the Scopus database.FindingsThe findings of the SLR show that the existing literature focuses on seven research areas: IC and public sector; IC university and education; IC evaluation method; internal and external IC disclosure; IC and CSR; management of IC in organizations; other. Overall, findings indicate that IC measurement and reporting are highly researched topics that continue to attract the interests of scholars. Finally, the SLR analysis has allowed outlining a future research agenda, with particular reference to the IC evaluation method and internal and external IC disclosure research areas.Research limitations/implicationsThe main limitation of this research lies in the manual screening of relevant studies, which entails some degree of subjectivity. Furthermore, another limitation research could be considered the use of a single database (Scopus).Originality/valueThe present study brings potential contributions for scholars and practitioners. From a scholarly perspective, the paper provides a systematization of scientific contributions that have dealt with IC measurement and reporting. In particular, it contributes to the scholarly debate bringing into focus various IC measurement and reporting issues in the landscape of private and public organizations. Referring to practical implications, our research supports the strategic use of IC measurement and reporting as a key lever for improving the management of firms. Using an analytical framework that combines insights from the agency, stakeholder and legitimacy theories, this study highlights that IC reporting activity should be used strategically as a means to engage with all firm's stakeholders, in particular with a view to reducing information asymmetry and improving firm reputation.

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“…According to Lev et al [59], it is the most valuable asset that firms have because it directs other types of intellectual capital. In contrast, Bryl [20] and Benevene et al [13] asserted that it is the policies and processes, research and development programmes, and ideas that drive innovation and performance.…”

Section: Organisational Capital Disclosurementioning

confidence: 98%

An Assessment of the Influence of Structural Capital Disclosure on the Value of Listed Service Firms in Nigeria

Akinadewo,

Falana

2024

Asian J. Econ. Busin. Acc.

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The purpose of this study was to assess the influence of structural capital disclosure on the value of listed service firms in Nigeria. This study employed a quantitative research approach, using data from annual reports and financial statements of 23 listed service firms in Nigeria. The sample was selected using a census sampling technique. The study used multiple regression analysis coupled with correlation analysis. From the findings that emerged from the result, the study concluded that structural capital disclosure proxy by organisational, process, and innovation capital disclosures significantly influence the value of listed service firms in Nigeria. Given this finding, the study recommends that a framework for such disclosure should be institutionalized as firms want to limit this type of disclosure because of business secrecy and competitors' disadvantage costs.

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Does the Level of Intellectual Capital Affect Meeting the Information Needs of Social Media Users in the Field of Sustainability? The Case of the World’s Largest Energy Industry Companies

Cited by 4 publications

References 19 publications

Capital structure and speed of adjustment: the impact of environmental, social and governance (ESG) performance

Capital structure and speed of adjustment: the impact of environmental, social and governance (ESG) performance

Intellectual capital between measurement and reporting: a structured literature review

An Assessment of the Influence of Structural Capital Disclosure on the Value of Listed Service Firms in Nigeria

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