ESG disclosure and firm performance before and after IR

Author:

Albitar Khaldoon,Hussainey Khaled,Kolade Nasir,Gerged Ali Meftah

Abstract

Purpose This paper aims to investigate the effect of environmental, social and governance disclosure (ESGD) on firm performance (FP) before and after the introduction of integrated reporting (IR) further to exploring a potential moderation effect of corporate governance mechanisms on this relationship. Design/methodology/approach Ordinary least squares and firm-fixed effects models were estimated based on data related to FTSE 350 between 2009 and 2018. The data has been mainly collected from Bloomberg and Capital IQ. This analysis was supplemented with applying a two-stage least squares (2 SLS) model to address any concerns regarding the expected occurrence of endogeneity problems. Findings The results show a positive and significant relationship between ESGD score and FP before and after 2013, among a sample of FTSE 350. Furthermore, the study is suggestive of a moderation effect of corporate governance mechanisms (i.e. ownership concentration, gender diversity and board size) on the ESGD-FP nexus. Additionally, this paper finds that firms voluntarily associated with IR have a tendency to achieve better firm financial performance. Practical implications The findings of the present study have several policy and practitioner implications. For example, managers may engage in ESGD to enhance their firms’ financial performance by the voluntary involvement in IR, which believed to help investors to rationalise their investment decisions. Likewise, the results reiterate the crucial need to integrate more social, environmental and economic regulations to promote sustainability in the UK. The paper also offers a systematic picture for policymakers in the UK as well as future researchers. Social implications The findings of this paper indicate that IR plays a significant role in the relationship between ESGD and FP, where IR firms seemed to be achieving better FP as compared with their non-IR counterparts. This implies that stakeholders may have played a magnificent effort to encourage firms’ voluntary engagement in IR in the UK. Originality/value To the best of the authors’ knowledge, this is the first study to explore the potential moderating effect of ownership concentration, gender diversity and board size on the relationship between ESGD and FP and to examine whether firms’ voluntary involvement in IR can lead to better FP after the introduction of IR in 2013 in the UK.

Publisher

Emerald

Subject

General Economics, Econometrics and Finance,Accounting,Management Information Systems

Reference54 articles.

1. The impact of social, environmental and corporate governance disclosures on firm value;Journal of Accounting in Emerging Economies,2018

2. Women in the boardroom and their impact on governance and performance;Journal of Financial Economics,2009

3. Gender diversity and firm value: evidence from UK financial institutions;International Journal of Accounting and Information Management,2019

4. Corporate social responsibility and financial performance: the moderating role of ownership concentration in Turkey;Sustainability,2019

5. Sustainability in businesses, corporate social responsibility, and accounting standards: an empirical study;International Journal of Accounting and Information Management,2011

Cited by 212 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Does ESG information disclosure increase firm value? The mediation role of financing constraints in China;Research in International Business and Finance;2025-01

2. News or noise? ESG disclosure and stock price synchronicity;International Review of Financial Analysis;2024-10

3. Nexus between corporate governance and FinTech disclosure: a comparative study between conventional and Islamic banks;Competitiveness Review: An International Business Journal;2024-09-17

4. Board gender equality and ESG performance. Evidence from European banking sector;Corporate Governance: The International Journal of Business in Society;2024-09-17

5. Unveiling the moderating role of governance mechanism on the nexus between CSR and firm performance in India: A GMM‐based dynamic panel approach;Corporate Social Responsibility and Environmental Management;2024-09-11

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3