Social and environmental practices and corporate financial performance of multinational corporations in emerging markets: Evidence from 20 oil-rich African countries

Adams, Dawda; Adams, Kweku; Attah‐Boakye, Rexford; Ullah, Subhan; Rodgers, Waymond; Kimani, Danson

doi:10.1016/j.resourpol.2022.102756

Cited by 12 publications

(13 citation statements)

References 105 publications

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“…Government concerns about the environment have a combined effect on social development, business management, and environmental improvement (Adams et al, 2022; Sakshi et al, 2020). Corporate green innovation is driven by a combination of internal and external factors.…”

Section: Introductionmentioning

confidence: 99%

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

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The objective of this study is to examine the impact of government environmental concerns on green innovation and whether this has a “leverage effect” or a “crowding‐out effect.” This study employs a two‐way fixed‐effects model to conduct an empirical test using panel data from 2010 to 2020 on Chinese firms listed in heavy‐polluting industries. The results suggest that an increase in government environmental concerns can promote corporate green innovation. However, government environmental concerns primarily stimulate strategic innovation rather than substantive innovation. After a series of robustness and endogeneity tests, the conclusions of this paper still hold. Corporate green innovation induced by government environmental concerns is not the “leverage effect” superimposed on existing innovation activities but the “crowding‐out effect” of other technological innovation. The heterogeneity tests in this paper indicate that the impact is more pronounced for firms with poorer environmental conditions, stronger political connections, and richer executive backgrounds.

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Section: Introductionmentioning

confidence: 99%

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Chen,

Zhu,

Ding

et al. 2023

Bus Strat Env

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“…Environmental CSR affects developing countries' financial and environmental performance [45,50,71]. Prior research largely ignored CSR's environmental impacts in favor of its economic benefits [18,46,78,79] This study provides the following hypothesis due to CSR's impact on financial performance.…”

Section: Csr To Environment and Financial Performancementioning

confidence: 98%

“…In contrast, environmental concerns are not given much consideration in the emerging nations of Asia and Africa. In addition, the bulk of the world's commodities are manufactured and processed in these countries [18][19][20][21][22][23]. This issue requires immediate resolution, and manufacturers must be aware of their corporate social responsibilities (CSR), which have four dimensions: employees, environment, community, and customers.…”

Section: Introductionmentioning

confidence: 99%

The Corporate Social Responsibility and Its Impact on Financial Performance: A Case of Developing Countries

Chishti

Durrani

et al. 2023

Sustainability

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In developing nations, environmental policies have not given nearly enough consideration to the role that environmentally friendly innovation plays. Green innovation and long-term financial performance are extremely dependent on one another. Despite the fact that numerous studies have investigated the impact that a variety of corporate social responsibility (CSR) activities have had on environmental sustainability, relatively few have investigated the implications of green innovation strategies and sustainability. From the mid-2021 through to mid-2022, information was gathered from 184 businesses listed on the Pakistan Stock Exchange (PSX) across 12 different industries. Estimates of the results were obtained by the use of structural equation modeling using partial least squares (PLS-SEM). The outcomes of the study indicated that all parts of CSR were positively significant in the process of fostering environmentally sustainable growth, with the exception of one aspect of CSR that was directed toward customers. Additionally, sustainable development contributes to the mediation impact that green innovation has, making this effect even more powerful. The data show that CSR activities have an exceptional impact on financial performance (FP) in all aspects other than one, and that green innovation (GI) also has a high-quality impact on FP, which demonstrates the significance of CSR practices in enhancing sustainable environment.

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“…For example, the influence of higher disclosure practices on firm performance is inconclusive in the literature. Some studies reported that sustainability disclosure is positively linked with firm performance (Adams et al, 2022; Chijoke‐Mgbame & Mgbame, 2018; Ode‐Ichakpa et al, 2020; Ofori et al, 2014; Siueia et al, 2019), and firm valuation (De Klerk & De Villiers, 2012; Thompson et al, 2022), indicating the growing moral obligation to society, and strategic activity geared at securing legitimacy from the society influence the sustainability practice.…”

Section: Thematic Analysismentioning

confidence: 99%

Sustainability reporting in Africa: A systematic review and agenda for future research

Igwe

Khatib

Bazhair

2023

Corp Soc Responsibility Env

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This study provides a comprehensive systematic review of the sustainability reporting research focused on Africa. Using a systematic literature review approach, we synthesized 179 high‐quality journal articles obtained from the Scopus database. The study revealed that the extent and quality of SDGs and sustainability reporting in Africa are still very low and unsatisfactory. Also, we found that the existing studies mainly concentrated on the determinants of sustainability reporting, while limited research addressed the outcomes and sustainability assurance. Furthermore, the review indicates that firms in Africa predominantly focused on reporting their economic and social impacts while paying less attention to environmental protection. The study contributes to knowledge by providing an up‐to‐date and comprehensive review of sustainability reporting studies from important research contexts such as Africa. In doing so, we offer a more nuanced understanding of sustainability research in the region. We equally identified inconsistencies, gaps, and opportunities for future research.

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Social and environmental practices and corporate financial performance of multinational corporations in emerging markets: Evidence from 20 oil-rich African countries

Cited by 12 publications

References 105 publications

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

Government environmental concerns and corporate green innovation: Evidence from heavy‐polluting enterprises in China

The Corporate Social Responsibility and Its Impact on Financial Performance: A Case of Developing Countries

Sustainability reporting in Africa: A systematic review and agenda for future research

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