Chairani Chairani and Sylvia Veronica Siregar
This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social and…
Abstract
Purpose
This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social and governance (ESG) performance.
Design/methodology/approach
The samples in this study are listed companies in the ASEAN 5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) during the years 2014–2018, with total observations of 680 firm-years. Fixed effect panel data regressions were used to test the hypotheses. The data was collected from Financial Report, Annual Reports and Thomson Reuters.
Findings
The results show that ERM has a positive significant effect on financial performance and firm value. This paper also finds that ESG has a significant moderating role in increasing the effect of ERM on firm value. Further, this paper divides the samples into sensitive and non-sensitive industries and find a significant moderating role of ESG performance on firm performance for sensitive industries.
Originality/value
Extant studies have not empirically examined the moderating role of ESG on the effect of ERM on firm performance and firm value. The findings have important implications in suggesting that firms need to analyze various threats and opportunities related to and ESG risks in achieving competitive advantage.
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Mahsina Mahsina, Dian Agustia, Damai Nasution and Wiwiek Dianawati
This study aims to investigate the direct relationship between audit committee effectiveness and sustainability performance and the mediating role of risk management in the…
Abstract
Purpose
This study aims to investigate the direct relationship between audit committee effectiveness and sustainability performance and the mediating role of risk management in the relationship between audit committee effectiveness and firm sustainability performance.
Design/methodology/approach
The Hayes Process regression mediation model was used in this study. The data included 2,590 firm-year observations from 518 publicly non-banking and finance companies on the Indonesia Stock Exchange from 2017 to 2021.
Findings
This study proves the important role of risk management in mediating the effect of audit committee effectiveness on firm sustainability performance. Audit committee effectiveness was found to positively and significantly affect risk management. However, the effect of audit committee effectiveness on firm sustainability performance was statistically insignificant. The robustness checks and additional tests support all the main regression results.
Research limitations/implications
Sample firms from Indonesia were used as representatives of developing countries. Further research may use more sample firms from multiple countries or provide a comparative study between firms in different countries.
Practical implications
The authority must enhance the audit committee’s role in risk management quality due to the indirect effect between the audit committee and sustainability disclosure. It should also expand the audit committee’s role to include sustainability disclosure.
Social implications
This study could increase community awareness of firm sustainability. Where a company is required to provide more eco-products, stakeholders are, therefore, expected to have more equal concerns.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine risk management as a mediator of the effect of audit committee effectiveness on firm sustainability performance.
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Syed Quaid Ali Shah, Fong-Woon Lai, Muhammad Kashif Shad, Salaheldin Hamad and Nejla Ould Daoud Ellili
Despite the growing emphasis on sustainability and the need to manage environmental, social, and governance (ESG) risks, the direct relationship between enterprise risk management…
Abstract
Purpose
Despite the growing emphasis on sustainability and the need to manage environmental, social, and governance (ESG) risks, the direct relationship between enterprise risk management (ERM) and green growth (GG) has not been investigated. This study seeks to fill this gap by examining the effect of ERM on the GG of oil and gas (O&G) companies in Malaysia.
Design/methodology/approach
The study used panel data regression models to analyze panel data from 2012 to 2021. For computing GG, we adapted the Organization for Economic Cooperation and Development’s (OECD) GG framework. ERM is computed using COSO and WBCSD guidelines for ESG-related risks. Weighted content analysis is used to measure ERM and GG
Findings
The findings derived from the content and descriptive statistics analyses indicate a consistent and ongoing rise in the adoption of ERM practices over time. However, some companies are still in the initial stages of incorporating ERM to address ESG risks. The study’s findings unequivocally establish a substantial and positive relationship between ERM and GG. ERM drives GG by significantly influencing its environmental and resource productivity dimensions. The study further reveals that the impact of ERM on economic opportunities and policy responses, as well as the natural asset base, is statistically significant, albeit with relatively lower coefficient values.
Practical implications
To enhance the legitimacy of organizations and foster positive stakeholder relationships, regulators, governments, and policymakers should actively promote the adoption of ERM standards that specifically address ESG risks, as outlined by COSO and WBCSD. This strategic alignment with risk management practices will ultimately contribute to improving green growth for organizations.
Originality/value
To the best of the authors' knowledge, this is the first study examining ERM’s effect on GG. The study adds to the existing literature by focusing on ERM’s role in a company’s GG. It clarifies ERM’s significant effect on diminishing emerging ESG risks and advancing GG
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Jamidi, Abdul Rauf, Chairani Hanum and Erwin Nyak Akop
Purpose – The purpose of the research aims to observe the high growth of corn crops with a different cropping pattern.Design/Methodology/Approach – The research is conducted based…
Abstract
Purpose – The purpose of the research aims to observe the high growth of corn crops with a different cropping pattern.
Design/Methodology/Approach – The research is conducted based on field experiments with Group Randomized Design (hereafter RAK shortened from Cluster Random Design). The treatment of cropping pattern I is that corn crops are planted in one row with the size of plot 9 m × 4 m, and the distance planting of the crops is 70 cm × 40 cm. Cropping pattern II is that corn crops are planted in two rows with the size of plot 9 m × 4 m, and the distance planting is 70 cm × 40 cm. Cropping pattern III is that corn crops are planted in three rows with the size of plot 9 m × 4 m, and the distance among the crops is 70 cm × 40 cm.
Findings – The result of research shows that the highest corn crops are from cropping pattern II.3 at age 15 and 30 after planting time (called HariSetelahTanam or HST). The increase of cropping rows from one row to two rows indicates that intra-specific competition are more dominant. The growth of crops is faster because they need full sunlight at vegetative and generative stages. The need of full sunlight at the growing stage causes the increasing of stem height of crops to enable the crops to receive the sunlight optimally due to the continuity of photosynthesis process. The increasing growth of stem diameter is in accordance with the growth speed of height plant at the same age.
Research Limitations/Implications – This research intends to find out the best growing process of the plant. Further research is needed to study the outcome of final product of the plant.
Practical Implications – This is to see the utilization of the best cropping pattern and optimal land utilization.
Originality/Value – High growth of corn crops and stem diameter (Zea may, S) with a different cropping pattern has not yet been published.
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Faozi A. Almaqtari, Tamer Elsheikh, Khaled Hussainey and Mohammed A. Al-Bukhrani
The purpose of this study is to examine the impact of country-level governance on sustainability performance, taking into account the effect of sustainable development goals…
Abstract
Purpose
The purpose of this study is to examine the impact of country-level governance on sustainability performance, taking into account the effect of sustainable development goals (SDGs) and board characteristics.
Design/methodology/approach
This study uses panel data analysis using fixed effect models to investigate the influence of country-level governance on sustainability performance while considering the effect of SDGs and board characteristics. The sample comprises 8,273 firms across 41 countries during the period spanning from 2016 to 2021. The sample is divided into two categories based on the score of SDGs.
Findings
The findings of this study show that countries with high SDGs score have better overall country-level governance and board attributes which have a statistically significant positive impact on sustainability performance. However, for those countries with low SDGs, political stability shows a statistically insignificant and negative impact on sustainability performance, while government effectiveness indicates a statistically insignificant positive impact on sustainability performance.
Originality/value
This study contributes to the literature by providing empirical evidence on the relationship between country-level governance, SDGs, board characteristics and sustainability performance. The study also highlights the importance of considering the effect of SDGs on the relationship between country-level governance and sustainability performance. The findings of this study could be useful for policymakers and firms in improving their sustainability performance and contributing to sustainable development.
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Bilal Mukhtar, Muhammad Kashif Shad, Lai Fong Woon, Mehwish Haider and Ahmad Waqas
This study aims to propose a conceptual framework to examine the impact of corporate social responsibility (CSR) and green organizational culture (GOC) on green innovation with…
Abstract
Purpose
This study aims to propose a conceptual framework to examine the impact of corporate social responsibility (CSR) and green organizational culture (GOC) on green innovation with the moderating role of environmental, social and governance (ESG) disclosure in the Malaysian manufacturing industry.
Design/methodology/approach
The study is based on primary data to be collected from 204 manufacturing enterprises of consumers, products and services sector through a questionnaire that incorporates the five-point Likert scale. The exploratory factor analysis is proposed to be performed using SPSS 24.0 and confirmatory factor analysis is suggested to be conducted using AMOS.21 software to explore the factors and reliability of the items and to confirm the factorial structure of pertinent variables, respectively. Furthermore, partial least square structural equation modeling is proposed to investigate relationships between constructs and latent variables.
Findings
The proposed framework suggests that the comprehensive adoption of CSR and GOC with the moderating role of ESG disclosure has a significant and positive impact on green innovation.
Practical implications
This study provides insights into formulating strategies for enhancing green innovation and serves as a valuable resource for stakeholders for sustainable development in manufacturing enterprises.
Originality/value
To the best of the authors’ knowledge, regarding originality, this is the first attempt at conceptualizing the integrated framework of CSR, GOC, green innovation and ESG disclosure for collective examination that is likely to extend the existing literature. Furthermore, this study extends stakeholders and resource-based view theory by proving their utility in the perspective of CSR, GOC, green innovation and ESG disclosure to achieve environmental sustainability.
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Alessandro Lai and Riccardo Stacchezzini
This paper aims to trace subsequent steps of the sustainability reporting evolution in terms of changes in the organisation fields and professional jurisdictions involved. As…
Abstract
Purpose
This paper aims to trace subsequent steps of the sustainability reporting evolution in terms of changes in the organisation fields and professional jurisdictions involved. As such, it highlights the (interrelated) organisational and professional challenges associated with the progressive incorporation of “sustainability” within corporate reporting.
Design/methodology/approach
The paper draws on Suddaby and Viale’s (2011) theorisation of how professionals reshape organisational fields to highlight how organisational spaces, actors, rules and professional capital evolve alongside the incorporation of sustainability within corporate reporting.
Findings
The paper shows organisational spaces, actors, rules and professional capital mobilised during the recent evolution of sustainability reporting, starting from a period in which there was no space for sustainability, to more recent periods in which sustainability gained increasing momentum beyond initial niches, and culminating in more integrated forms of sustainability reporting.
Research limitations/implications
Although the analysis is limited to empirical evidence collected by prior research and practice on sustainability reporting, the paper offers a view to imagine how the incorporation of sustainability within corporate reporting relies on and affects organisational fields and professional jurisdictions.
Originality/value
The paper offers a lens to interpret corporate and professional challenges associated with the more recent evolutions of sustainability reporting practice and standard setting. It also allows framing the papers accepted in the special issue on “new challenges in sustainability reporting” and concludes by suggesting an agenda for future research.
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Bilal Mukhtar, Muhammad Kashif Shad, Kashif Ali, Lai Fong Woon and Ahmad Waqas
This study aims to holistically present a systematic literature review (SLR) triangulated with bibliometric analysis on environmental, social and governance (ESG) research to…
Abstract
Purpose
This study aims to holistically present a systematic literature review (SLR) triangulated with bibliometric analysis on environmental, social and governance (ESG) research to synthesize and comprehensively review its evolving journey and emerging research streams.
Design/methodology/approach
Using R-studio software, this study carried out a retrospective quantitative bibliometric analysis through performance analysis, science mapping and network analysis, covering 261 documents published on ESG research between 2007 and 2022 in Scopus and Web of Science databases.
Findings
Performance analysis depicts the trends in publications, impactful journals and influential publications, authors and countries, while science mapping incorporates co-words and thematic analysis. Likewise, co-occurrence analysis provided four different clusters, representing ESG research linkage to other management fields along with key insights from co-citation network analysis. Additionally, the theory–context–characteristics–methods (TCCM) framework has provided valuable results in terms of widely and emerging used theories, contexts, characteristics and methodologies in ESG research.
Research limitations/implications
The findings of this study’s comprehensive bibliometric analysis combined with SLR uncovered a robust roadmap for further investigation in ESG research by identifying the inherent structure and evolution of research themes. This review has not only identified the prevalent gaps in determining priorities for future research but also provides insights which not previously been captured and evaluated on this topic.
Originality/value
To the best of the author's knowledge, no study presents the TCCM framework in the context of bibliometric analysis of ESG research. Besides, a conceptual framework is developed that illustrates antecedents, mediators, moderators and outcomes of research on ESG practices and provides the concluded key takeaways and recommendations for potential authors intending to publish their research papers on ESG practices.
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Malik Abu Afifa, Nha Minh Nguyen and Duong Van Bui
This study aims to investigate the nexus among environmental, social and governance disclosure quality (ESGDQ), corporate governance (COG) and corporate social responsibility…
Abstract
Purpose
This study aims to investigate the nexus among environmental, social and governance disclosure quality (ESGDQ), corporate governance (COG) and corporate social responsibility strategy (CSRS) in the context of ASEAN, a developing market. Furthermore, carbon emission (CAE) has been considered as a moderation component for the CSRS–ESGDQ link.
Design/methodology/approach
With strict selection criteria, five countries in the ASEAN region (ASEAN-5) were selected as the research sample frame, including Vietnam, Thailand, Malaysia, Indonesia and the Philippines. Using the Thomson Reuters Eikon database, the initial sample included 4,735 listed companies in ASEAN-5. After a rigorous screening process, there were a total of 683 companies in the final sample with the 2018–2022 intervals.
Findings
By using maximum likelihood structural equation modeling, the finding indicates that COG and CSRS have a favorable effect on ESGDQ in the ASEAN-5 context. Furthermore, CAE plays an outstanding moderation role in the CSRS–ESGDQ link. The fundamental accounting standards are also identified as having an impact on ESGDQ.
Practical implications
The research points up the dominant role of internal components (i.e. COG, CSRS and CAE) and government factor (i.e. fundamental accounting standards) for the sustainable value (i.e. ESGDQ) of firms in ASEAN-5, a developing market. Thus, firm headers should inspect the performance of these internal components at a crucial interval to enhance their environmental, social and governance (ESG) behaviors and make them more sustainable. Furthermore, governments in ASEAN-5 should pay attention to developing areas that have low CAE and have a favorable influence on national sustainable development goals.
Social implications
The findings of the research provide some social implications by pointing up important factors influencing sustainability practices, and understanding how ESG practices can be improved in developing countries.
Originality/value
The research enlarges ESG documentation by specifying the influences of internal components and government factor, as well as providing actual proof from developing regions. In addition, this study identifies the effectiveness of CAE as well as its moderating role in this context.