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Prior studies mostly tested the association between carbon emissions and firm value in certain contexts. This study aims to advance the existing literature by concentrating on three indicators of greening in corporations namely resource use, emissions and eco-innovation, and examining their value relevance in the stock market at the global level. Furthermore, we deepen the investigation by exploring the moderating role of eco-innovation and the CSR committee between greening in corporations and market value.

The data for the study were retrieved from the Thomson Reuters Eikon database for the years between 2002 and 2019 and contain 17,961 firm-year observations which are analyzed through fixed-effects regression.

The results reveal that while resource usage is viewed as value-relevant by the market, the emissions and eco-innovation are not. However, despite eco-innovation per se not being value-relevant, its interaction with resource usage and emissions is value-relevant. Furthermore, CSR committees undertake a very critical role in translating greening practices into market value.

While the results for emissions support the cost-concerned school, the findings for resource usage confirm the value creation school. Furthermore, the interaction effect of eco-innovation and CSR committee confirms the resource-based theory and stakeholder theory, respectively.

Investors regard eco-innovation-induced pro-environmental behaviors as value-relevant. These results propose firms replace eco-innovation at the focal point in developing environmental strategies and connecting other greening efforts to it. Moreover, CSR committees are critical to corporations in translating greening practices into firm value by developing and implementing disclosure and communication strategies.

The study’s originality stems from investigating the synergetic effect that eco-innovation and CSR committees generate in translating greening practices to greater market value at a global scale.

This research investigated whether corporate social responsibility (CSR) can alleviate the negative effect of non-performing loans (NPLs) on bank performance.

The research employed a sample of European banks over the 2008–2017 period. To resolve endogeneity and heterogeneity problems, the system generalized method of moments (SGMM) model was employed.

First, bank NPLs were negatively and significantly associated with bank performance as measured by the Q-Tobin ratio and the return on assets (ROA). Second, CSR scores exerted a negative and significant effect on the level of NPLs. Finally, the results indicated that bank performance could benefit from the interactional effect of CSR and NPLs.

This study fills the gap in the debate over the mediating role of CSR in the NPLs – bank performance interrelation. In addition, our SGMM analysis yielded more robust and efficient results while resolving endogeneity and heterogeneity problems concerning CSR and bank performance or risk in corporate finance.

CSR practices can play an essential mediating role in the NPLs–bank performance relationship. CSR activities in the European context may reduce the level of NPLs and increase bank performance.

To the best of the authors’ knowledge, studies of the implications of CSR activities on the banking sector are very limited. Indeed, this paper shows that CSR mediates the relationship between CSR practices and NPLs. The results suggest that bank performance could benefit from the interactional effect of CSR and NPLs.

This paper aims to investigate the reciprocal nonlinear relationship between corporate social responsibility (CSR) and firm performance (FP).

The authors used a sample of 814 European firms over the period 2008–2017. The Panel Smooth Transition Regression (PSTR) model was performed as an econometric approach.

Firstly, results show a threshold effect in the CSR–FP relationships within the two directions. More specifically, the authors found that firms are more likely to engage in CSR by surpassing a threshold of 1.231% for return on assets (ROA) and 0.821% for Tobin’s Q ratio. Secondly, the authors also found that the impact of CSR on FP is positive and significant only if the environment, social and governance score surpasses the threshold of 56.780% when the dependent variable is ROA and 41.02% when Tobin’s Q ratio measures performance.

A significant part of the literature supports the linear relationship between CSR and FP from the unique direction (CSR → FP). This study comes to fill this gap by assessing the possible nonlinear relationship. In addition, this nonlinear relationship is tested under the two directions. Therefore, defining the threshold of FP that allows companies to engage in CSR, on the one hand, and the threshold of engagement in CSR that improves FP, on the other hand, could be an exciting topic.

To get the full benefit from CSR effects, firms should be with better financial performance to be socially responsible.

To the best of our knowledge, few studies have explored the nonlinear relationship between CSR and FP. In addition, this study raises the question of whether this relation is causal. The authors assess the two nonlinear relationships between CSR ? FP and FP ? CSR by determining the optimal thresholds.

本文旨在探究企業社會責任 (以下簡稱企社責) 與公司業績之間的相互非線 性關係。

研究所採用的樣本為814間歐洲公司, 涵蓋期為2008年至2017年。研究人 員使用縱橫平滑轉換模型、作為經濟計量方法和工具去進行研究。

研究結果顯示、在有關的兩個方向內, 企社責與公司業績之間的關聯上是 存在著閾值效應的。更具體地說, 研究人員發現, 若企業的資產報酬率超過1.231%的 水平, 以及托賓的Q比率 (Tobin’s Q Ratio) 0.821%的水平的話, 它們會更願意承擔企 社責。其次, 研究結果亦顯示, 企社責對企業的業績會產生積極的影響; 另外, 只有 當資產報酬率是因變數、而環境、社會和公司治理的分數 (ESGS) 超過56.780%, 以 及當托賓的Q比率用來測量績效、而數值為41.02%時, 企社責對企業的業績所產生的 影響會較為顯著。

過去的學術文獻、大部份都是以唯一的方向 (企社責 ->公司業績) 去確認 企社責與企業業績之間的線性關係。本研究評估了兩者之間可能存在的非線性關係; 而且, 這非線性關係是在有關的兩個方向下而進行測試的; 因此, 本研究一方面給可 讓公司以企社責的精神和理念去營運的企業業績的閾值下了定義; 另一方面, 又給參 與企社責為公司帶來業績的改善的閾值下了定義。這均為令人興奮的課題。

企業若想取得因參與企社責而帶來的完全好處, 它們必須擁有更佳 的財務績效、以能盡其社會責任。

盡我們所知, 探究企社責與企業業績之間的非線性關係的研究實在不 多; 而且, 本研究對這兩者的關係是否是因果關係提出了質疑; 就此, 我們藉著釐定 最佳的相對閾值、來評估企社責 ->企業業績與企業業績 ->企社責之間的兩個非線性的 關係。

The purpose of this paper is to investigate whether institutional quality influences the corporate social responsibility (CSR) and firm performance (FP) relationship.

This paper uses a large sample of 814 European firms from roughly 2008 to 2017. In order to resolve the problem of endogeneity and heterogeneity the system generalized method of moment is performed.

First, the effect of CSR on FP is simultaneously positive and significant for the economic, social and overall score based on an equal-weighted performance of four CSR pillars. Second, we found that the institutional quality matters, as corruption significantly decreases the FP, while government stability law and order exert a positive impact. Third, results suggest, similarly, that FP benefits from the interactional relationship between CSR and institutional quality. Finally, as for firm specifics, we found that the lagged performance and growth rate of sales significantly increase the European FP. However, FP is negatively sensitive to the leverage ratio.

This study aims to fill the gap in the CSR-FP interrelation and institutional context. Since we have a large number of firms (814) compared to a relatively small temporal dimension (10 years), the dynamic panel data analysis, and more precisely, the SGMM approach, is the most appropriate to resolve the problem of endogeneity and heterogeneity.

The institutional environment affects the firm's CSR response and results. The strong institutional quality may result in increased regulatory pressures placed on the firm related to social responsibility compliance and can thereby enhance the CSR–FP relationship.

To the best of our knowledge, this is the first study that explored the relationship between CSR–FP and institutional quality in the European context. Indeed, this paper shows that institutional quality mediates the relationship between CSR practices and FP.

This paper aims to investigate whether a high level of voluntary disclosure attracts sell-side analysts. In other words, the authors check whether the number of analysts following a given firm increases with the extent of voluntary information that corporate managers provide in annual reports.

The paper relies on regression analyses to study the relationship between the level of coverage by sell-side analysts and the extent of voluntary disclosure for a sample of 155 non-financial firms listed on the Euronext Paris stock exchange and members of the SBF 250 index.

The empirical results show that the number of analysts following a given firm increases with the extent of voluntary disclosure. Consequently, the authors conclude that analysts are interested in the volume of information provided voluntarily by corporate managers. Their interest varies across the voluntary-information categories (strategic, financial, non-financial and governance) disclosed in annual reports.

This study extends previous research by investigating sell-side analysts’ preferences in terms of voluntary-information categories in annual reports. A better understanding of the effects of sub-categories of voluntary information is useful to corporate managers wishing to meet market expectations and attract sell-side analysts. In fact, the authors verify how each category of disclosed information (strategic, financial, non-financial and governance) affects the analyst coverage intensity. In addition, the authors apply our study in the rather interesting empirical setting that is France, which is characterized by a low investor protection and a large number of active analysts.

The purpose of this paper is to investigate the relationship between liquidity risk and credit risk of Islamic and conventional banks in a predominantly Muslim country (Indonesia) adopting a dual banking system.

To investigate liquidity-credit risk nexus, this study used a sample of 72 Islamic and conventional banks in Indonesia for a period between 2019 Q4 and 2022 Q1. This paper used a generalized method of moments (GMM) and generalized least square (GLS) estimators.

This study found that there is a nonlinear (inverted U-shaped) relationship between liquidity risk and credit risk in dual banking system. Liquidity risk was found to increase credit risk if it is below the optimal threshold, and above this optimal threshold, liquidity risk begins to decrease credit risk, both before and during the pandemic. In addition, the impact of liquidity risk on credit risk is higher in Islamic banks compared to conventional banks.

This paper reinvestigates the puzzle between credit risk and liquidity risk by taking a sample of a dual banking system country and by considering the period of the COVID-19 pandemic. To the authors’ knowledge, this approach has not been addressed in prior empirical studies.