The Impact of Environmental Sustainability Disclosure on Stock Return of Saudi Listed Firms: The Moderating Role of Financial Constraints

Alsahlawi, Abdulaziz Mohammed; Chebbi, Kaouther; Ammer, Mohammed Abdullah

doi:10.3390/ijfs9010004

Cited by 28 publications

(27 citation statements)

References 83 publications

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“…The magnitudes of environmental disclosure were more significant for the banking industry than the insurance industry. Our study findings aligned with the existing literature (Rostami et al, 2016;Cahyani Putri, 2019;Suhadak et al, 2019;Alsahlawi et al, 2021). Better governance that includes an increase in financial and operational openness is one way, so the argument goes that the organization may attain a lower risk of adverse selection.…”

Section: 4supporting

confidence: 88%

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

Jiang

Qamruzzaman

2023

Front. Environ. Sci.

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Introduction: The study’s motivation is to investigate the role of environmental and financial disclosure, IT adoption, and good governance on firms’ sustainability from 1990–2019. A sample of 75 financial institutions enlisted in Bangladesh’s capital market was considered for relevant data collection.Methodology: Secondary data sources were used for data accumulation, including annual reports of target FIs, economic review reports, and central banks publication. Several econometrical techniques have been implemented to document the empirical nexus and the elasticities of explained variables on firm performance.Findings: In terms of baseline assessment, the study revealed a positive and statistically significant association between a firm’s sustainability and target explanatory variables. Furthermore, the study extended the empirical valuation by implementing a system-GMM and documented a positive linkage between financial and environmental disclosure, IT adaptation, good governance, and the firm’s performance sustainability.Discussion: These study findings suggest that information symmetry, investor protection, and access to financial services foster and stabilize the firms’ performance. Concerning corporate governance’s mediating effect, the study established a mediating role with positive influences on financial performance augmentation. On the policy ground, the study postulated that financial policymakers should address fairness and integrity in disclosing information to the public. Enforcement has to be initiated to ensure good governance.

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Section: 4supporting

confidence: 88%

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

Jiang

Qamruzzaman

2023

Front. Environ. Sci.

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“…Some studies conclude a positive relationship between sustainability reporting and financial performance (Buallay et al , 2020; Deng and Long, 2019; Buallay et al , 2021a, 2021b; Buallay et al , 2021a, 2021b). In contrast, others find a negative relationship (Alsahlawi et al , 2021). In some instances, no relationship or a non-significant relationship was detected (Landi and Sciarelli, 2019; Horváthová, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

ESG and performance in public health-care companies: the role of disclosure and director liability

Khoury

Nasrallah

Toumi³

2022

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Purpose The seepage of companies' capital accommodated by weak country-level institutions is inconducive to building sustainable businesses. Companies' performance on environmental, social and governance (ESG) issues is still a challenging question. This study aims to test the predictability of ESG on the performance of the health-care industry from a global perspective, while accounting for the country disclosure and director liability indices and performing robustness tests. Design/methodology/approach This study relies on panel data of 912 companies operating in 38 different countries for 2012–2020. This study controls for firm-level variables (leverage, size and loss), macroeconomic variables (COVID, gross domestic product and inflation) and institutional variables. Findings Findings indicate that countries with different levels of disclosure exhibit different patterns. Distinctly, the environmental pillar has a concave impact on return on assets, and the role of the disclosure index greatly manifests with the environmental pillar. Practical implications This study ponders the impact of country disclosure on sustainability practices from a global health-care perspective. Originality/value This paper is original, as it addresses the relationship between ESG performance and financial performance while accounting for the impact of institutional factors such as the business disclosure and director liability indices.

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“…M -test statistics show that the original hypothesis with no obvious spatial effect is rejected. LM stability test shows that the spatial error term and lag term obviously reject the original hypothesis under the double fixed effects of time and space (Alsahlawi et al , 2021). Under the double fixed effect, the spatial lag model is significantly better than the spatial error model.…”

Section: Introductionmentioning

confidence: 99%

Research on green innovation countermeasures of supporting the circular economy to green finance under big data

Zhao

2021

JEIM

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PurposeThe purpose of this paper is to explore the sustainable development strategy of green finance under the background of big data.Design/methodology/approachFrom the perspective of big data, this paper uses quantitative and qualitative analysis methods to judge the correlation among green finance, environmental supervision and financial supervision. Green finance gives the entropy method to calculate the score of green finance and environmental regulation, and establishes the spatial lag model under the double fixed effects of time and space.FindingsSpatial autocorrelation test shows that economic spatial weight matrix has obvious spatial effect on green innovation. Through the model selection test, the space lag model with fixed time and space is selected. The regression coefficients of green finance, environmental regulation and their interaction are 0.1598, 0.0541 and 0.1763, respectively, which significantly promote green innovation. The regression coefficients of openness, higher education level and per capita GDP are 0.0361, 0.0819 and 0.0686, respectively, which can significantly promote green innovation.Originality/valueIn view of the current situation of large-scale application of big data technology in green innovation of domestic energy-saving and environmental protection enterprises, this paper establishes a fixed time lag evaluation model of green innovation. M-test statistics show that the original hypothesis with no obvious spatial effect is rejected.

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The Impact of Environmental Sustainability Disclosure on Stock Return of Saudi Listed Firms: The Moderating Role of Financial Constraints

Cited by 28 publications

References 83 publications

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?

ESG and performance in public health-care companies: the role of disclosure and director liability

Research on green innovation countermeasures of supporting the circular economy to green finance under big data

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