Shahab Ud Din, Muhammad Arshad Khan, Majid Jamal Khan and Muhammad Yar Khan
This study examines the impact of ownership structure on firm financial performance, for 146 manufacturing firms listed at the Pakistan Stock Exchange (PSX) for the period…
Abstract
Purpose
This study examines the impact of ownership structure on firm financial performance, for 146 manufacturing firms listed at the Pakistan Stock Exchange (PSX) for the period 2003–2012.
Design/methodology/approach
The theoretical background of the present study is based on the agency theory. Ownership structure is measured by institutional shareholdings, insider shareholdings, foreign shareholders and government shareholdings, while return on assets (ROA), return on equity (ROE), market-to-book ratio (MBR) and Tobin's Q (TQ) are used as proxies of corporate financial performance. The dynamic panel generalized method of moments (GMM) method is employed to cater for the issue of endogeneity.
Findings
We find that institutional ownership exerts a significant positive impact on ROE and MBR, which suggests that institutional investors play a significant role in improving the financial performance of the sample Pakistani. Furthermore, the results reveal a significant positive relationship of insider ownership with ROA, ROE, MBR and TQ, which is consistent with the prediction of agency theory that concentration of insider ownership aligns the interest of shareholders with those of the managers and hence improves performance. A significant positive association of government shareholdings with ROA and ROE was also found. Therefore, policymakers may encourage government ownership in firms, which can help to improve corporate financial performance.
Originality/value
The present study contributes to the existing literature on ownership structure and corporate financial performance in an emerging market like Pakistan. It is worth mentioning that the institutional setup and corporate governance structure in Pakistan is yet at an evolving stage. Findings of this study may provide useful insights to corporate managers and investors about the relationship between ownership structure and financial performance of firms from the manufacturing sector in Pakistan.
Details
Keywords
Abstract
Details
Keywords
Amina Buallay, Jasim Yusuf AlAjmi, Sayed Fadhul and Aikaterini Papoutsi
This study investigates the association between corporate sustainability disclosures and firm performance and value.
Abstract
Purpose
This study investigates the association between corporate sustainability disclosures and firm performance and value.
Design/methodology/approach
This study collected data from 694 manufacturing companies operating in 34 countries between 2007 and 2019, yielding 6,181 firm-year observations. This study employs a dual-model framework to analyze the influence of environmental, social, and governance (ESG) performance on return on assets (ROA), return on equity (ROE), and Tobin's Q ratio. Two sets of control variables, firm- and country-specific, were incorporated to account for potential confounding factors. To validate the robustness of the findings, we utilized a battery of econometric techniques, including traditional ordinary least squares (OLS), firm-fixed effects, quantile regression, and instrumental variables-generalized method of moments (IV-GMM), applied to both the pooled and firm-fixed effects models.
Findings
The findings are contradictory: there is a negative relationship between sustainability disclosure and operating performance and return on equity, but a positive relationship between sustainability disclosure and firm value. The negative correlation is consistent with agency theory and the positive correlation is consistent with the legitimacy and shareholder theories. These results are robust to performance measures and estimation methods.
Research limitations/implications
Short-term profit shouldn't deter sustainability. It boosts legitimacy, reputation, efficiency, and long-term market value. Investors must look beyond profitability ratios, embracing ESG metrics. Firms should see sustainability as strategic investment, not cost. Patience pays off: long-term gains await. Regulation can guide balanced growth, prioritizing both shareholders and societal well-being.
Originality/value
This study is the first to adopt a firm’s fixed-effect quantile regression, which provides deep insights into the role of sustainability disclosure in meeting stakeholders’ expectations.
Details
Keywords
Iman Kanani, Abdullatif Ahmadi Ramchahi, Mohammad Zarasi, Mohd Yusoff Zulkifli and Raja Jamilah Raja Yusof
This paper aims to clarify the relationship between Muslims and non-Muslims in human society, based on the concept of muwālāt (commonly translated as “loyalty”) in the Qurʾān.
Abstract
Purpose
This paper aims to clarify the relationship between Muslims and non-Muslims in human society, based on the concept of muwālāt (commonly translated as “loyalty”) in the Qurʾān.
Design/methodology/approach
The present study follows a contextual and analytical methodology.
Findings
This paper concludes that muwālāt is not only ideological but can be contractual too. A historical study of the Prophet’s (PBUH) interaction with non-Muslims in Mecca and Medina illustrates that as long as non-Muslims did not behave treacherously or turn to violence, a peaceful relationship was established and alliances and coalitions were formed. And this paper concludes that the categorisation of previous Muslim scholars, which was is in terms of prohibited and permitted, is inappropriate.
Originality/value
This paper clarifies that the categorisation of previous Muslim scholars, which was in terms of prohibited and permitted, is inappropriate, and muwālāt is not only belongs to faith.
Details
Keywords
Vinicius Elias Villabruna, Cleiton Hluszko, Daiane Rossi, Murillo Vetroni Barros, Jasmine Siu Lee Lam and Fernando Henrique Lermen
Seaports are vital in facilitating sustainable development, and environmental, social and governance (ESG) factors significantly impact an organization’s performance. Therefore…
Abstract
Purpose
Seaports are vital in facilitating sustainable development, and environmental, social and governance (ESG) factors significantly impact an organization’s performance. Therefore, this study aims to identify and evaluate barriers and strategies of green investments to promote ESG practices within the seaport sector.
Design/methodology/approach
To fulfill this aim, a systematic literature review, interpretive structural modeling and the matrix of cross-impact multiplications were applied to classification analysis.
Findings
12 barriers were prioritized and categorized by experts in a focus group to optimize efforts and define the materiality of these barriers in implementing ESG strategies within seaport companies.
Practical implications
The implications of this study provide an alternative approach for ESG management in the context of seaports that can be applied in different regions by experts' opinion assessment.
Originality/value
No prior studies assessed the barriers and strategies for green investments in ESG from the port sector perspective.