ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

Chouaibi, Salim; Chouaibi, Jamel; Rossi, Matteo

doi:10.1108/emjb-09-2020-0101

Cited by 186 publications

(122 citation statements)

References 93 publications

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“…CSR practices are becoming increasingly important in recognizing the impact ESG issues have on corporate image reputation, competitive advantage and investment decision-making (Battisti et al, 2019;Baalouch et al, 2019;Wong et al, 2020;Murashima, 2020;Chouaibi et al, 2021). In light of this, Singh et al (2019) underline that many investors consider business ethics as a proxy for management quality assessment.…”

Section: Introductionmentioning

confidence: 99%

Social and ethical practices and firm value: the moderating effect of green innovation: evidence from international ESG data

Chouaibi

2021

IJOES

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Purpose This study aims to examine the potential effect of integrating social and ethical practices into strategy on the market valuation of environmental, social and governance (ESG) businesses using the moderating effect of green innovation. Design/methodology/approach The sample used consisted of 523 international firms listed on the ESG index and headquartered in North America and Western Europe, forming an unbalanced panel of 7,845 observations spanning the period 2005–2019. The authors run a fixed-effects panel regression model using the Thomson Reuters ASSET4 to test the relationship between societal and ethical practices and the stock market value creation. Similarly, as an extension of the research, this paper exploits two robustness analyzes. The authors tested the dynamic dimension of the data set through the generalized moment method and the effect of the legal system. Findings Evidence reveals a significant positive relationship between societal and ethical practices and businesses’ market valuation. The empirical results indicate that societal and ethical strengths increase firm value with the moderating effect of green innovation and weaknesses reduce it. The results found with the dynamic dimension of the data set indicate the existence of continuity between firm values over time. Research limitations/implications Given the long study period, many firms with missing data were eliminated. To avoid the small sample size, countries with few observations were included, which led to an uneven distribution between observations per country. Practical implications Findings from this paper can help ESG firms to consider their future growth opportunities in a context where the approach of business ethics occupies a central position in business valuation. Originality/value This study is the only study that provides ESG companies with seven different nationalities with evidence for the effect of social and ethical practices regarding market valuation. This paper is also relevant as it addresses the relationship between social effectiveness and financial efficiency, as well as the dynamic effect of this relationship.

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Section: Introductionmentioning

confidence: 99%

Social and ethical practices and firm value: the moderating effect of green innovation: evidence from international ESG data

Chouaibi

2021

IJOES

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“…2.1 Sustainability reporting as a driver of sustainable development In the last decade, companies have started talking about sustainable development and acting sustainably (KPMG, 2020;Milne et al, 2009). Specifically, the concept of sustainability in corporate management relates to the idea that companies have to satisfy their stakeholders' requests without compromising the future stakeholders' needs (Chouaibi et al, 2021;Dyllick and Hockerts, 2017). However, the development of economic sustainability alone does not represent a sufficient condition for a company's pursuit of sustainability (Gladwin et al, 1995;Schneider and Meins, Sustainable Development Goals and food system 2012).…”

Section: Introductionmentioning

confidence: 99%

“…In the last decade, companies have started talking about sustainable development and acting sustainably (KPMG, 2020; Milne et al , 2009). Specifically, the concept of sustainability in corporate management relates to the idea that companies have to satisfy their stakeholders' requests without compromising the future stakeholders' needs (Chouaibi et al , 2021; Dyllick and Hockerts, 2017).…”

Section: Introductionmentioning

confidence: 99%

Sustainable Development Goals and healthy foods: perspective from the food system

Iazzi

Ligorio

Vrontis

et al. 2021

BFJ

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PurposeThe objective of the paper is to assess food and beverage companies' levels of communication about their activities and sustainability performances, in terms of their compliance with the requirements of the Global Reporting Initiative (GRI) Standards and the consistency of the contents of the sustainability reports they publish on the Sustainable Development Goals (SDGs).Design/methodology/approachTo this end, a content analysis of the non-financial reports published by 102 food and beverage companies in the year 2018 has been conducted to identify the most adopted GRI guideline and the nature of the communicated SDGs. Finally, three t-tests have been used to understand how the presence on a listed market, the geographical settlement and nature of the company affects the corporate social responsibility (CSR) communication.FindingsThe study has revealed how the transition to the more recent GRI Standards guidelines is still on going. Also, it has emerged how food and beverage companies are supporting the pursuit of the SDGs through the reduction of work inequalities. At last, the analysis has showed how the presence on a listed market is a driver of CSR communication.Originality/valueThe findings of the present study provide a picture of the current CSR practices in the food and beverage sector and allow companies to effectively choose the most suitable non-financial indicators and GRI guidelines. Also, the present contribution has revealed the key SDGs considered by food and beverage companies.

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“…The relationship between corporate social responsibility (CSR) and financial performance is one of mitigation. According to Chouaibi et al [34], CSR engagement and financial performance may be codetermined, with each affecting the other. In this case, estimating either CSR or firm financial performance regressions may result in endogeneity.…”

Section: Endogeneity Testmentioning

confidence: 99%

Exploring the Moderating Role of Social and Ethical Practices in the Relationship between Environmental Disclosure and Financial Performance: Evidence from ESG Companies

et al. 2021

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Environmental disclosure is the latest novelty in the corporate reporting field. In fact, it is a tool that can better represent the capacity of companies in creating financial performance over time. Therefore, this paper analyzes whether environmental disclosure (ED) practiced by firms listed on the ESG index affects their financial performance (FP) using the moderating effect of social and ethical practices. The analysis includes a linear regression using panel data from Thomson Reuters and Bloomberg databases. Panel data were collected from a sample of 523 companies listed on the North American and West European stock exchanges. The obtained results show a positive and significant relationship between environmental disclosure (ED) and financial performance (FP). This implies that a strong environmental disclosure increases financial performance while a weak one decreases it. Furthermore, the study suggests a moderating effect of social and ethical practices in the link between environmental disclosure and the firm’s financial performance. In fact, these findings provide interesting insights for academic practitioners and regulators who are interested in discovering environmental disclosure, firm’s performance, and social and ethical practices. These findings also provide insights to stakeholders and regulators on the crucial need to integrate more social and environmental regulations to promote sustainability. Moreover, this paper fills the gaps existing in previous studies that ignore the moderating role of social and ethical practices in the relationship between environmental disclosure and financial performance.

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ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law

Cited by 186 publications

References 93 publications

Social and ethical practices and firm value: the moderating effect of green innovation: evidence from international ESG data

Social and ethical practices and firm value: the moderating effect of green innovation: evidence from international ESG data

Sustainable Development Goals and healthy foods: perspective from the food system

Exploring the Moderating Role of Social and Ethical Practices in the Relationship between Environmental Disclosure and Financial Performance: Evidence from ESG Companies

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