Business Strategy and The Environment最新文献

This paper empirically investigates the relationship between specific dimensions of ESG disclosure and ESG controversies. We analyze an unbalanced panel sample of European banks between 2015 and 2022, implementing the GMM-SYS version of the Arellano-Bond estimator for dynamic panels. The study results indicate that banks disclosing full information are more likely to face scandals. In addition, EU membership has a positive impact on the ESG controversies. Overall, our research suggests that while transparency is intended to enhance accountability, it may also lead to heightened scrutiny and the exposure of more controversies. Our study, therefore, sheds new light on current knowledge on ESG disclosure and controversies, integrating theoretical, practical, policy, and investor perspectives.

This paper provides the first in-depth analysis of the effects of incorporating environmental, social, and governance (ESG) factors into the cost-efficiency frontier of banks. Drawing on both shareholder and stakeholder theories, the research addresses the increasing regulatory and market pressures for banks to incorporate ESG components into their operational processes. Using data from 42 European listed banks spanning the 2006–2021 period and a stochastic frontier approach (SFA), the study introduces two novel ESG-related variables in the stochastic frontier function: (i) a variable measuring the contribution of ESG factors to banking output production and (ii) a variable measuring the risks associated with ESG controversies. Additionally, it evaluates the impact of executive remuneration tied to ESG goals on cost efficiency, addressing a critical gap in the literature. The findings reveal that ESG-related frontier variables significantly influence the banks' cost function. Furthermore, the results show that banks with a stronger commitment to ESG principles achieve higher cost efficiency in the long term, despite short-term cost increases associated with ESG investments. Moreover, the results highlight that executive compensation linked to ESG targets negatively affects cost efficiency. By filling these gaps, the paper significantly contributes to the literature, offering valuable insights for bank managers tasked with balancing short-term costs against long-term efficiency gains through strategic ESG investments.

This study explores the influence of sustainability practices on supplier sustainability risks and sustainability performance in Brazilian companies, offering key insights into how behavioral and technical practices impact these crucial areas. Data were collected from 152 Brazilian companies across various sectors. The theoretical framework was tested using partial least squares structural equation modeling. The research findings highlight that implementing behavioral sustainability practices has a positive effect on reducing supplier sustainability–related risks and improving overall sustainability performance in supply chains. These practices, focused on fostering sustainable behaviors within organizations and among suppliers, play a critical role in mitigating sustainability risks and enhancing long-term performance. Unexpectedly, the study did not confirm the predicted relationship between technical sustainability practices and improvements in supplier sustainability–related risks and performance. This surprising result challenges traditional assumptions about the effectiveness of technical practices in improving supply chain sustainability performance. By uncovering the distinct impact of behavioral versus technical sustainability practices, the study provides valuable insights for both researchers and practitioners. It emphasizes the importance of promoting behavioral change to achieve meaningful sustainability outcomes. The findings have practical implications for companies aiming to enhance their sustainability strategies and manage sustainability risks more effectively within their supply chains, making this research a significant contribution to sustainable management and supply chain theory.

Extended producer responsibility (EPR) is an obligation for manufacturers to ensure environmentally sound management of their goods, even after they have been sold to consumers. Governments frame EPR rules for better waste management, and violating these rules may lead to penalties. This study aims to understand the intellectual structure of EPR and to define a framework of EPR enablers, which can help organizations devise strategies to manage their obligations effectively. The study conducts a bibliometric review of 749 journal articles published between 2012 and 2023 using the bibliometrix and the VOSViewer packages. The findings identify five knowledge clusters: EPR process and drivers; policy and legislation; consumer behavior and EPR; EPR and business models; and use of technology and science. Semi-structured interviews with industry practitioners help discover prioritization among these clusters. Researchers and organizations can use these findings to take action and understand EPR from a more holistic perspective.

Based on signalling and stakeholder theory, this research empirically explores the relationship between sustainability disclosure by firms and their dividend payouts in emerging economies. Various measures such as likelihood of paying dividends, stability of dividend disbursed, dividend payout ratio and dividend yield are employed to test the research hypotheses. Panel dataset covering firms from 16 emerging economies spanning from 2015 to 2022 is analysed using Logit model, Tobit model and Random Effect model. The findings demonstrate a favourable relationship between ESG disclosure scores and dividend payouts of firms. Higher ESG scores are associated with a greater likelihood of paying dividends, higher dividend payments, ensuring the stability of these payments and delivering higher implied shareholder returns through dividend yield. These effects are more pronounced for firms under greater financial constraints. Importantly, these results remain robust across various sensitivity analyses involving alternative measures, estimation methods and instrumental variable regression. These findings hold implications for investors, managers and policymakers, offering valuable insights for companies to structure their sustainability initiatives. By examining and integrating corporate finance and sustainability, this study introduces ESG scores as a novel nonfinancial driver of corporate payouts, thus marking the pioneering contribution to the ESG-dividend literature in emerging nations.