Giovanni Landi and Mauro Sciarelli
This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and governance…
Abstract
Purpose
This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and governance (ESG) paradigm, meant to measure corporate social performance by rating issuance, can impact on abnormal returns of Italian firms listed on Financial Times Stock Exchange Milano Indice di Borsa (FTSE MIB) Index, developing a panel data analysis which runs from 2007 to 2015.
Design/methodology/approach
This study aims at exploring whether socially responsible investors outperform an excess market return on Italian Stock Exchange because of their investment behavior, testing statistically the relationship between the yearly ESG assessment issued by Standard Ethics Agency on FTSE MIB’s companies and their abnormal returns. To verify the impact of an ESG Rating on a company’s abnormal return, the authors developed a panel data analysis through a Fixed Effects Model. They measured abnormal returns via Fama–French approach, running a yearly Jensen’s Performance Index for each company under investigation.
Findings
The empirical results denote in Italy both a growing interest to corporate social responsibility (CSR) and sustainability by managers over the past decade, as well as an improving quality in ESG assessments because of a reliable corporate disclosure. Thus, despite investors have been applying ESG criteria in their stock – picking operations, the authors found a not positive and statistically significant impact in terms of market premium, when they have been undertaking a socially responsible investment (SRI).
Practical implications
The findings described above show that ethics is not yet a reliable fundraising tool for Italian-listed companies, despite SRIs having a positive growth rate over past decade. Investors seem to be not pricing CSR on Stock Exchange Market; therefore, listed companies cannot be rewarded with a premium price because of their highly stakeholder oriented behavior.
Originality/value
This paper explores, for the first time in Italy, when market extra-returns (if any) are related to corporate social performance and how managers leverage ethics to build capital added value.
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Mariacarmela Passarelli, Giovanni Catello Landi, Alfio Cariola and Mauro Sciarelli
The paper aims to advance knowledge by investigating the main factors that impact on innovation through the co-development process between researchers and firms at the very early…
Abstract
Purpose
The paper aims to advance knowledge by investigating the main factors that impact on innovation through the co-development process between researchers and firms at the very early stage of proof of concept.
Design/methodology/approach
The authors developed an empirical analysis on the proof of concept network project, through a mixed empirical analysis. They explored the main factors that affect the enactment of the co-development process and tested the impact of such factors on the probability for partners to enact a co-development project and generate innovation.
Findings
From the quantitative analysis comes out that the trust of the research team into the potentiality of the technology, the commitment of researchers concerning the scalability of technology and the IP value issued by external experts have a positive impact on the probability to create a match among partners and generate innovation.
Research limitations/implications
Even if all the population of technologies (108) considered in the project implementation are analyzed, the development of the empirical analysis on a specific project within a single country represents a limitation. Future analysis will concentrate on a larger panel of proof of concept experience across Europe.
Practical implications
The success of a co-development process between researchers and companies at the embryonic phase of the technology considers the opportunity to exploit the technologies into real products for the market.
Originality/value
This is an empirical analysis of the first Italian proof of concept implementation that deeply investigates which critical factors can enable innovation by enacting a co-development process between researchers and small and medium-sized enterprises (SMEs).
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Mauro Sciarelli, Giovanni Landi, Lorenzo Turriziani and Anna Prisco
This study aims to explore the impact of controversial firms’ corporate sustainability assessments on their risk exposure according to the environmental, social and governance…
Abstract
Purpose
This study aims to explore the impact of controversial firms’ corporate sustainability assessments on their risk exposure according to the environmental, social and governance (ESG) paradigm.
Design/methodology/approach
This study conducts a cross-sectional study using the ordinary least squares approach to test how corporate social responsibility practices affect firms’ risk exposure, testing the three single impacts of ESG components and the impact of an overall ESG assessment. This study considers the largest Standard & Poor’s (S&P) 500 stock market index companies and focus on a double-risk measurement – systematic and idiosyncratic – developing an empirical study on 132 controversial companies listed on the S&P index.
Findings
Empirical findings indicate that the overall ESG assessment and the environmental and social sub-dimensions decrease idiosyncratic firm risk. At the same time, no significant results are found according to the systematic risk component.
Originality/value
This study fits into the domain of risk management research, investigating whether additional and non-financial disclosures regarding sustainability issues decrease information asymmetries, improving investors’ decision-making and stakeholders’ relations. Prior literature has shown limited evidence on the relationship between corporate social performance (CSP) and firm risk based on controversial companies. The main contribution is to consider the controversy as an independent factor from the industry sector, given that the implications of CSP actions and practices are mainly firm-specific.
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Mauro Sciarelli, Silvia Cosimato, Giovanni Landi and Francesca Iandolo
Recently, socially and responsible investments (SRI) have constantly grown becoming a highly discussed issue. Therefore, the main purpose of this paper is to better understand if…
Abstract
Purpose
Recently, socially and responsible investments (SRI) have constantly grown becoming a highly discussed issue. Therefore, the main purpose of this paper is to better understand if environmental social governance (ESG) criteria integration in investment strategies can support the transition of finance toward a more sustainable growth.
Design/methodology/approach
An explorative analysis based on a multiple case study has been conducted and addressed by a content analysis on the Key Investors Information Documents (KIIDs) that the sample companies published for 2020.
Findings
The achieved results demonstrated that the case companies differently integrated ESG into their SRI; thus, if some of them are quite near to a full integration, the others demonstrated less than a full commitment with ESG. This seems to be mainly due to the different approach that asset management companies (AMCs) and/or managers have adopted for integrating ESG criteria.
Research limitations/implications
Even though the achieved results offered some interesting insights for asset managers, the explorative and qualitative nature of this study and the small sample investigated somewhat limits it.
Practical implications
AMCs, consultants and managers in developing and implementing their SRI strategy could be much more focused on the importance of ESG integration for the transition toward a more responsible and sustainable finance (micro-level) as well as a more sustainable development (macro-level).
Originality/value
The paper provides new insights into the essence of SRI strategies and their potential to contribute to sustainable development. Thus, it tries to shed new lights on the role that ESG can have to stimulate and support investment decisions and, in so doing, contributing to make finance grow more sustainable.
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Andrea Rey, Giovanni Catello Landi, Francesco Agliata and Mavie Cardi
The paper aims to investigate the role of the network in managing the tradition and innovation paradox in the agribusiness industry. In particular, this study aims to demonstrate…
Abstract
Purpose
The paper aims to investigate the role of the network in managing the tradition and innovation paradox in the agribusiness industry. In particular, this study aims to demonstrate that agribusiness firms can innovate through tradition by joining a network, to capture the way intellectual capital (IC) is created, shared and transformed.
Design/methodology/approach
The authors approached the study using the social capital conceptual framework, considering the network a critical determinant of social capital, which enhances the organization's ability to share, create and utilize knowledge. Then, the authors also employed the extended territorial strategy theory. The authors derived empirical evidence from companies belonging to the PGI-labeled Consortium of Pasta di Gragnano (Consortium). The authors used a quantitative approach, carrying out a panel data analysis.
Findings
The results suggested that belonging to Consortium had a positive impact on the operating performance, the financial performance and the environment where consortium firms operate. Thus, being part of a network helps firms to innovate in a traditional industry.
Research limitations/implications
The evidence of this work provided several implications for managers, IC community and the policy public. For managers, the authors observed that agribusiness firms can preserve their traditions through knowledge sharing with firms that operate in the same network. For IC community, the authors contributed to the debate on the social capital theory, arguing that the one area of IC that has received significant attention is the role of the network, which enhances the organization's ability to generate, share and apply knowledge effectively (Lin, 2017; Solitander and Tidström, 2010). Finally, the authors argued that policymakers should implement new reforms that facilitate the formation of networks, especially in socio-economic contexts where the unemployment rate is high.
Originality/value
This is the first study that employs quantitative analysis to investigate this paradox.
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Pierluigi Rippa, Giovanni Landi, Silvia Cosimato, Lorenzo Turriziani and Mohamed Gheith
Over the last decades, the importance of entrepreneurial education (EE) for the personal development of young generations has gained momentum among policymakers, practitioners and…
Abstract
Purpose
Over the last decades, the importance of entrepreneurial education (EE) for the personal development of young generations has gained momentum among policymakers, practitioners and scholars. This paper offers some insights into the way T-shaped PhD programs can trigger transdisciplinary abilities of STEM students, making them even more ready toward venturing activities.
Design/methodology/approach
To achieve the purpose of the study, the effectiveness of a new T-shaped doctoral model was explored, testing it on a sample of STEM PhD students at Polytechnic School of University of Naples Federico II, using a qualitative-quantitative approach.
Findings
The results prove the positive influence that the T-shaped PhD program has on students in terms of vertical skills and horizontal capabilities attainment for entrepreneurial readiness.
Practical implications
This study advances interesting managerial and policy implications for activating virtuous collaborations to better respond to the need of current socioeconomic scenarios through academic knowledge.
Originality/value
Despite the growing relevance of EE, research about its influence at PhD level and the effect of different pedagogical methods remains scarce and controversial. Thus, this research explores if EE can support PhD students in science and technology transdisciplinarity terms of innovation management.
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Mauro Sciarelli, Giovanni C. Landi, Lorenzo Turriziani and Anna Prisco
This research focuses on the relationship between Top Management Team heterogeneity (TMT) and University Spin-Offs (USOs) economic performance according to a micro-foundational…
Abstract
Purpose
This research focuses on the relationship between Top Management Team heterogeneity (TMT) and University Spin-Offs (USOs) economic performance according to a micro-foundational perspective. The purpose consists in exploring whether a high academic representation in TMTs may improve USOs’ performance and how their competencies and backgrounds affect USOs’ economic success.
Design/methodology/approach
The authors employed data from the Italian platform Netval to identify the entire population of USOs in southern Italy. They selected both pure and hybrid spin-offs that had at least one academic member on the TMT. Applying these conditions to our sample selection, the authors came to a population of 136 firms. They applied a hierarchical regression analysis to test the hypotheses.
Findings
Our main findings reveal that the USOs’ economic performance improves with more academicians in the TMT and even in the same scientific field. Our data also shows that CEO duality has a negative impact on economic performance.
Originality/value
This work takes for the first time a micro-foundational perspective to analyze individual-level factors that affect USOs’ performance. The authors tried to bridge a research gap in the USO literature, shedding light on the relationship between TMT composition and new venture performance, considering some significant interactions between team members. Our expected findings also contribute to the general literature on entrepreneurial teams in new ventures and suggest a means to reconcile some inconsistent literature results on TMT heterogeneity and USO performance.
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Looks at the first 100 years of Italian cinema examining its role in Italy’s recent history. Provides a bibliography of major film directors, Italian cinema sources, reference…
Abstract
Looks at the first 100 years of Italian cinema examining its role in Italy’s recent history. Provides a bibliography of major film directors, Italian cinema sources, reference works, histories, themes, theory and criticism and articles in journals.
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Giovanni Francesco Massari and Ilaria Giannoccaro
Circular economy (CE) disclosure is becoming urgent for firms, but an accepted and recognized approach to address it is still missing, especially at small and medium enterprises…
Abstract
Purpose
Circular economy (CE) disclosure is becoming urgent for firms, but an accepted and recognized approach to address it is still missing, especially at small and medium enterprises (SMEs) level. This study aims to contribute to this issue by exploring the potential of the adoption of Global Reporting Initiative (GRI) Standards as a standardized approach for CE disclosure. The paper proposes a framework that identifies the existence of specific relationships between the topics included in GRI 300 Standards and CE strategies, which can be considered as managerial guidelines for CE strategy disclosure by companies.
Design/methodology/approach
The paper uses an explorative research methodology based on the content analysis of secondary data taken from the sustainability reports of the SMEs listed in STAR segment of Borsa Italiana.
Findings
The analysis shows that GRI Standards are currently adopted to disclose the CE strategies by Italian SMEs across different economic sectors including construction, food, automotive, retail, personal and household goods, industrial goods and services, electronics, media and technology. In particular, GRI 301 is used for the disclosure about Recycling, Reuse, Reverse logistics, Industrial Symbiosis, Eco-Design, Product as a Service and Refurbishing/Reconditioning/Remanufacturing. GRI 302 is suited to disclose CE strategies about Eco-Design, Renewable Energy and Industrial Symbiosis. GRI 303 can be useful to disclose about Reuse and Industrial Symbiosis. GRI 305 is appropriate for Eco-Design, Renewable Energy, Product as a Service, Industrial Symbiosis and Recycling. Finally, GRI 306 is useful to communicate the CE strategies of Recycling, Reuse, Reverse Logistics, Eco-Design, Industrial Symbiosis, Maintenance/Repair, Refurbishing/Reconditioning/Remanufacturing.
Practical implications
The paper includes implications concerning how to report the implementation of a wide range of CE practices, mainly using GRI 301, 302, 303, 305 and 306. These implications are mainly addressed to SMEs in different economic sectors.
Social implications
The use of the proposed framework, by improving the transparency and communication of the CE strategies used by companies, may contribute to accelerate the consumer awareness on CE practices fostering the CE transition, especially of SMEs, with a positive effect on society and environment.
Originality/value
This study extends the literature on CE by developing one among the few standardized approaches using the GRI Standards for the disclosure of CE strategies, a topic mainly investigated in the literature with reference to large companies in a few industries. The framework is also useful to explore the implementation of CE strategies across SMEs in different industrial sectors.
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Alejandro J. Useche, Jennifer Martínez-Ferrero and Giovanni E. Reyes
The goal is to investigate the relationship between financial performance and environmental, social and governance (ESG) indicators and disclosures for a sample of Latin American…
Abstract
Purpose
The goal is to investigate the relationship between financial performance and environmental, social and governance (ESG) indicators and disclosures for a sample of Latin American firms.
Design/methodology/approach
Dynamic panel data regressions are used to analyze a sample of 114 companies listed on the Latin American Integrated Market, MILA (Chile, Colombia, Mexico and Peru) for the period 2011–2020. The Altman Z-score and Piotroski F-score are used as indicators of the probability of default and comprehensive financial strength. Models are developed in which the relationship between economic value added (EVA) and Jensen’s alpha are evaluated against firms’ ESG practices.
Findings
A direct relationship between ESG strategies and financial performance was found. Better practices and transparency in ESG are related to lower probability of bankruptcy, greater financial strength, greater EVA and superior risk-adjusted returns.
Research limitations/implications
ESG data were obtained from the Bloomberg system based on a methodology that may differ from other sources. The sample covers four Latin American countries and large corporations. Independent variables were selected for their perceived validity, given their frequent use in previous studies.
Practical implications
Evidence for company management regarding the importance of strengthening ESG practices and reporting should be part of their balanced scorecards. For investors, the results support the importance of evaluating ESG practices in asset selection.
Originality/value
The present study is the first research to present empirical evidence on the relationship between ESG scores and disclosures for MILA countries, using a comprehensive set of financial performance indicators (Altman Z-scores, Piotroski F-scores, EVA and Jensen’s alpha).