Nexus between government initiatives, integrated strategies, internal factors and corporate sustainability practices in Malaysia

Zahid, Muhammad; Rahman, Haseeb Ur; Muneer, Saqib; Butt, Babar Zaheer; Chikaji, Aliyu Isah; Memon, Mumtaz Ali

doi:10.1016/j.jclepro.2019.118329

Cited by 33 publications

(42 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Fifth, most of the prior studies in the area mainly relied on the normative and instrumental aspects of the stakeholder theory (Bansal & DesJardine, 2014) and ignored its descriptive aspect that deals with the implementation of CSD (Zahid, Rahman, et al, 2019a).…”

Section: Discussionmentioning

confidence: 99%

“…To control for the measurement error, all the measurements of variables are as per previous literature. Moreover, the measurement error can also be controlled by adopting the appropriate methodology and proper regression estimator for the models (Bascle, 2008 Zahid et al, 2019b). The authors further describe that stakeholder engagement could be viewed as descriptive, normative, and instrumental.…”

Section: Causes and Identification Of Endogeneitymentioning

confidence: 99%

“…The data collection of the main activities related to CSD was recorded through the CSD index adapted from (Zahid, Rahman, et al, 2019b;Zahid, Rehman, et al, 2019), covering social, environ-mental, and economic dimensions of sustainability. This index already validated in the developing economies like Pakistan and Malaysia.…”

Section: Integrated Corporate Sustainability Strategiesmentioning

confidence: 99%

“…Fourth, the study has a theoretical contribution that most of the prior studies on the relationship between CSD and FFP have focused on the normative and instrumental aspects of stakeholder theory, which deal with the moral obligations of a firm and the instrumental benefits of these obligations (Bansal & DesJardine, 2014). The majority of these studies ignored the descriptive approach of the stakeholder theory that addresses the implementation of CSD (Zahid et al, 2019a). The current study is therefore significant in that to address all the three approaches, that is, descriptive, normative, and instrumental approaches to support the hypotheses of the study.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Addressing endogeneity by proposing novel instrumental variables in the nexus of sustainability reporting and firm financial performance: A step‐by‐step procedure for non‐experts

et al. 2020

Self Cite

View full text Add to dashboard Cite

Most of the prior literature that investigated the nexus between corporate sustainability disclosures (CSD) and firm financial performance (FFP) has largely been ignored the potential problem of endogeneity. The omitted variable(s), measurement error, and reverse causality, which are the known causes of endogeneity, may also be the possible reasons for the indecisive and inconsistent relationship between CSD and FFP. Accordingly, this study reinvestigates the relationship by addressing the problem of endogeneity through applying the two-stage least squares (2SLS) estimator to data collected from the annual reports of the top 10 Pakistani banks through content analysis from 2013 to 2017. The results show a positive impact of the CSD and social sustainability on FFP. However, environmental sustainability exerted a negative impact on FFP. The statistics for 2SLS are much different than those of the ordinary least squares (OLS), which explain the importance of addressing the endogeneity bias. The study offers a methodological procedure that identifies and addresses the endogeneity through a step-by-step process in Stata 13.0. Besides, the study also has a novelty to propose and validate additional instrumental variables for the research in the future. Overall, the study has many contributions and implications for different stakeholders such as academia, regulatory bodies, and practitioners in the field of corporate sustainability.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Causes and Identification Of Endogeneitymentioning

confidence: 99%

Section: Integrated Corporate Sustainability Strategiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Addressing endogeneity by proposing novel instrumental variables in the nexus of sustainability reporting and firm financial performance: A step‐by‐step procedure for non‐experts

et al. 2020

Self Cite

View full text Add to dashboard Cite

show abstract

“…The disclosures index has been widely used in prior studies as a proxy to identify and measure the level of firms' disclosures (Madi, 2012). A four steps approach depicted in Figure 1 was followed to develop sustainability disclosure index for the Islamic banking industry as recommended by previous authors (Anas, Abdul Rashid, & Annuar, 2015;Dissanayake et al, 2016;Kansal, Joshi, & Batra, 2014;Othman, Darus, & Arshad, 2011;Zahid et al, 2019). Firstly, an extensive literature review was employed to identify sustainability indicators.…”

Section: Sustainability-items Generation and Identificationmentioning

confidence: 99%

Sustainability Key Performance Indicators in Islamic Banking Sectors of Malaysia and Pakistan: A Scale Based Evidence

Rahman

Zahid

Asif

et al. 2020

J. Islam. bus. manag.

Self Cite

View full text Add to dashboard Cite

The marvelous development in the Islamic banking necessitates sustainable practices in the emerging industry. This study intends to ascertain the most followed or usual sustainability key performance indicators (KPIs) in the Islamic banking industry of Malaysia and Pakistan. For developing the sustainability KPIs index, the study follows the systematic steps as highlighted by prior such studies. The index composed of 109 items in 7 main sections of sustainability reporting adapted to collect data through content analysis for 21 Islamic banks from both the countries for the year 2016. Despite significant heterogeneity among the Islamic banks of the two countries, it is found that they show good compliance with the sustainability indicators. Though the Islamic banking industry of Pakistan is small than that of Malaysia, but still it is good in reporting sustainable practices except for environment and product responsibility, where the latter has an edge over the former. The study contributes a theoretical deliverable i.e. sustainability KPIs index for the Islamic banking industry through testing it with data from 21 Islamic banks from Malaysia and Pakistan. The findings could be significant for practitioners, regulators, policymakers, and especially the Islamic banking industry of both countries.

show abstract

Is there any difference between the theory and practice for the association between environmental sustainability and firm performance in Pakistan?

et al. 2021

Self Cite

View full text Add to dashboard Cite

This study aims to determine the impact of environmental sustainability (ES) on firm financial performance (FFP). The study also examines the mediation of ES in the relationship between integrated management strategies (IMS) and FFP. By employing the content analysis technique for global reporting initiative (GRI) framework, the study collected desired data from the sustainability, corporate social responsibility, and annual reports of the sample firms (1,275 firm‐year observations) listed on the Pakistan stock exchange (PSX) from 2012 to 2016. The study employed a t‐test, ordinary least square, and generalized least square estimator with the fixed effect and random effect for estimating the hypothesized relationships. The results revealed that the ES and IMS have a significant positive impact on the FFP (ROA & Tobin's Q). Also, it is observed that ES mediates the relationship between IMS and Tobin's Q. Furthermore, it also noted that the results are more striking after addressing endogeneity. Besides using the unique ES index, the study also contributes to the literature and practice by updating the developing countries' key stakeholders, especially Pakistan.

show abstract

Nexus between government initiatives, integrated strategies, internal factors and corporate sustainability practices in Malaysia

Cited by 33 publications

References 35 publications

Addressing endogeneity by proposing novel instrumental variables in the nexus of sustainability reporting and firm financial performance: A step‐by‐step procedure for non‐experts

Addressing endogeneity by proposing novel instrumental variables in the nexus of sustainability reporting and firm financial performance: A step‐by‐step procedure for non‐experts

Sustainability Key Performance Indicators in Islamic Banking Sectors of Malaysia and Pakistan: A Scale Based Evidence

Is there any difference between the theory and practice for the association between environmental sustainability and firm performance in Pakistan?

Contact Info

Product

Resources

About