Do the firm characteristics moderate the nexus between the firm's sustainable practices and financial performance?

IF 4.8 Q1 BUSINESS Business Strategy and Development Pub Date : 2024-04-29 DOI:10.1002/bsd2.376
Umakanta Gartia, Ajaya Kumar Panda
{"title":"Do the firm characteristics moderate the nexus between the firm's sustainable practices and financial performance?","authors":"Umakanta Gartia,&nbsp;Ajaya Kumar Panda","doi":"10.1002/bsd2.376","DOIUrl":null,"url":null,"abstract":"<p>The paper explores the partial and integrated influence of corporate sustainability practices on the financial execution of Indian-listed firms. The study considered a sample of 569 listed firms, and the study period spans from 2010 to 2022. Using estimates of feasible generalized least square and quintile regression, the study finds a positive association between the environmental, social, and governance (ESG) score and the financial performance of firms. All the individual dimensions of the ESG score positively affect the firm's internal and external values. Environmental practices have the highest impact on improving balance sheet values through return on asset (ROA). In contrast, social practices have the highest impact on creating market value through Tobin's Q (TQ) compared with other dimensions. However, for large firms, excess investment in ESG may not support their balance sheet through ROA but generates market value through TQ. ESG disclosers negatively impact the internal earnings of firms that are financially inflexible but, in the aggregate, support the firm's market value. In addition, the study finds a significant moderating effect of size, earnings, value, and financial flexibility on the association between ESG scores and the financial performance of the firms.</p>","PeriodicalId":36531,"journal":{"name":"Business Strategy and Development","volume":"7 2","pages":""},"PeriodicalIF":4.8000,"publicationDate":"2024-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Strategy and Development","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/bsd2.376","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0

Abstract

The paper explores the partial and integrated influence of corporate sustainability practices on the financial execution of Indian-listed firms. The study considered a sample of 569 listed firms, and the study period spans from 2010 to 2022. Using estimates of feasible generalized least square and quintile regression, the study finds a positive association between the environmental, social, and governance (ESG) score and the financial performance of firms. All the individual dimensions of the ESG score positively affect the firm's internal and external values. Environmental practices have the highest impact on improving balance sheet values through return on asset (ROA). In contrast, social practices have the highest impact on creating market value through Tobin's Q (TQ) compared with other dimensions. However, for large firms, excess investment in ESG may not support their balance sheet through ROA but generates market value through TQ. ESG disclosers negatively impact the internal earnings of firms that are financially inflexible but, in the aggregate, support the firm's market value. In addition, the study finds a significant moderating effect of size, earnings, value, and financial flexibility on the association between ESG scores and the financial performance of the firms.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
企业特征是否会缓和企业可持续实践与财务业绩之间的关系?
本文探讨了企业可持续发展实践对印度上市公司财务执行的部分和综合影响。研究以 569 家上市公司为样本,研究时间跨度为 2010 年至 2022 年。通过使用可行的广义最小二乘法和五分位回归估计,研究发现环境、社会和治理(ESG)得分与企业财务绩效之间存在正相关。环境、社会和治理得分的所有单个维度都会对企业的内部和外部价值产生积极影响。环境实践对通过资产回报率(ROA)提高资产负债表价值的影响最大。相比之下,与其他维度相比,社会实践对通过托宾 Q 值(TQ)创造市场价值的影响最大。然而,对于大型企业来说,在环境、社会和治理方面的过量投资可能无法通过资产回报率支持其资产负债表,但却能通过托宾 Q 值创造市场价值。披露环境、社会和公司治理信息的公司会对财务不灵活的公司的内部收益产生负面影响,但总体上会支持公司的市场价值。此外,研究还发现,企业规模、盈利、价值和财务灵活性对 ESG 分数与企业财务绩效之间的关联具有显著的调节作用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
Business Strategy and Development
Business Strategy and Development Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)
CiteScore
5.80
自引率
6.70%
发文量
33
期刊最新文献
Unveiling the blackbox within ESG ratings' blackbox: Toward a framework for analyzing AI adoption and its impacts Strategic management of employee churn: Leveraging machine learning for sustainable development and competitive advantage in emerging markets Corporate sustainability commitment in the Middle East and North Africa region: Impact on innovation and firm performance Beyond aroma: A sustainability performance analysis of Italian coffee roasting companies ESG risk, CEO education and gender: Evidence from Southeast Asia
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1