Search Results (2,162)

Enterprise digital transformation has emerged as a key strategy for enhancing innovation capacity in the age of the digital economy. This article aims to analyze the influence mechanism of digital transformation on corporate innovation and evaluate the mediating function of corporate innovation and cooperative cultures between digital transformation and corporate innovation capability. This work builds a panel data model based on data from Chinese A-share listed businesses from 2012 to 2021, empirically analyzes it using the Tobit model and the fixed effects model with instrumental variables technique, and uses the mediation effect test to uncover the course of action. According to the report, digital transformation significantly enhances creativity capability; second, corporate collaborative and innovation cultures mediate the relationship between digital transformation and innovation outcomes, and cultural capital becomes a crucial link; and third, the influence of digital transformation on corporate innovation capability is greater in state-owned enterprises, non-monopoly industries, and high-tech industries. According to the study, businesses should work to realize the dual-wheel drive of “technological investment + cultural cultivation” and establish an open and collaborative innovation ecosystem, while the government should intensify the development of digital infrastructure, enhance the supporting system, encourage cultural construction and talent supply, and create an environment that supports the synergistic development of digitization and innovation. Full article

The purpose of this research is to examine how relationships between corporate control environments and stakeholders mediate the different dimensions of pressure on auditor independence. In France, two (joint) auditors are required by law for listed companies. In this context, we analyze the experiences of higher-echelon professionals of audit firms, controllers, and managers who could elucidate the essence of pressure on auditor independence in their lived environment. An interpretative approach and empirical analysis were adopted for this study to expand on the literature and proffer an answer to the following research question: How does the relationship between a control environment and a stakeholder mediate the pressures on auditor independence? Interviews involved seven participants, mainly higher-echelon professionals of Big Four firms, as well as two members of auditee organizations, and a member of an audit committee. In addition, the narratives from the documents gathered from the EU audit legislation implementation database constitute our data corpus. Thematic coding was used to organize the results. The findings reveal that control environment best practices and down-to-earth corporate governance policies, participated in by both auditors and audited organizations, cushion the pressures on auditors. This, in turn, presents a positive and significant impact on auditor independence. Overall, the dimensions that mediate the pressures on auditors are as follows: the consciousness of pressure in itself; the reputation and experience of the audit firm; and the interactions between the auditors and corporate governance. Other factors include the cordiality of the relationship between the auditor and corporate management and the resulting healthy end of the negotiation between auditors and auditees. This study contributes to the theory and practical discussion of the relationships between the corporate control environment, corporate governance, auditing, and pressure on auditor independence. Full article

Background: With COVID-19 having a significant impact on economic activity, it has become difficult for the existing dynamic factor models (nowcasting models) to forecast macroeconomics with high accuracy. The real-time monitoring of macroeconomics has become an important research problem faced by banks, governments, and corporations. Subjects and Methods: This paper proposes an adaptive evolutionary causal dynamic factor model (AcNowcasting) for macroeconomic forecasting. Unlike the classical nowcasting models, the AcNowcasting algorithm has the ability to perform feature selection. The criteria for feature selection are based on causality strength rather than being based on the quality of the prediction results. In addition, the factors in the AcNowcasting algorithm have the capacity for adaptive differential evolution, which can generate the best factors. These two abilities are not possessed by classical nowcasting models. Results: The experimental results show that the AcNowcasting algorithm can extract common factors that reflect macroeconomic fluctuations better, and the prediction accuracy of the AcNowcasting algorithm is more accurate than that of traditional nowcasting models. Contributions: The AcNowcasting algorithm provides a new prediction theory and a means for the real-time monitoring of macroeconomics, which has good theoretical and practical value. Full article

Climate policy uncertainty (CPU) poses formidable challenges to global sustainable development and corporate strategic planning, while intelligent transformation is emerging as a pivotal enabler of organizational sustainability. Using panel data from Chinese A-share listed companies between 2011 and 2022, this study investigates the impact of climate policy uncertainty on intelligent transformation. The results indicate that CPU significantly promotes corporate intelligent transformation, a conclusion that remains robust under various sensitivity tests. Government innovation subsidies, enterprise absorption capacity, and enterprise human capital positively moderate this facilitating effect. A heterogeneity analysis reveals that the effect of CPU on intelligent transformation is more pronounced among firms in sci–tech finance pilot zones, regions with high digital financial inclusion, and those led by CEOs with banking experience. This paper contributes to the literature on climate policy uncertainty by examining its role in corporate intelligent transformation, offering actionable strategies for firms to mitigate climate risks while providing policy insights for developing economies to leverage smart technologies in addressing CPU. Full article

Nowadays, financial institutions increasingly leverage artificial intelligence to enhance decision-making and optimize investment strategies. A specific application is the automatic analysis of large volumes of unstructured textual data to extract relevant information through deep learning (DL) methods. However, the effectiveness of these methods is often limited by the scarcity of high-quality labeled data. To address this, we propose a new data augmentation technique, Concatenation Augmentation (CA). This is designed to overcome the challenges of processing unstructured text, particularly in analyzing professional profiles from corporate governance reports. Based on Mixup and Label Smoothing Regularization principles, CA generates new text samples by concatenating inputs and applying a convex additive operator, preserving its spatial and semantic coherence. Our proposal achieved hit rates between 92.4% and 99.7%, significantly outperforming other data augmentation techniques. CA improved the precision and robustness of the DL models used for extracting critical information from corporate reports. This technique offers easy integration into existing models and incurs low computational costs. Its efficiency facilitates rapid model adaptation to new data and enhances overall precision. Hence, CA would be a potential and valuable data augmentation tool for boosting DL model performance and efficiency in analyzing financial and governance textual data. Full article

The Middle East and North Africa (MENA) region has faced challenges like political instability and economic fluctuations, which have impacted non-performing loans (NPL) levels. At the same time, over the years, reforms and regulations have encouraged stronger board structures to enhance corporate governance and improve risk management. The purpose of this paper is to investigate how board characteristics affect non-performing in the MENA region. Board characteristics shape governance quality, which influences risk management and reduces banks’ risk-taking behaviours. Hence, effective governance can reduce non-performing loans by improving oversight and credit decisions. To this end, we used a sample of 70 banks operating in 12 countries in the MENA region from 2010 to 2022. The System Generalized Method of Moments (SGMM) was employed as an empirical technique. To benefit from a comparative analysis, we divided the entire sample into two subsamples. The first subsample covers six Gulf Cooperation Council (GCC) countries with 42 banks. The second subsample is also relative to six non-Gulf Cooperation Council (non-GCC) countries with 28 banks. The empirical findings indicate that the presence of independent board members, a higher number of female board members, board remuneration, and the board index decrease NPLs across all regions, including MENA, GCC, and non-GCC. However, we found that board size, tenure, and duality increase NPLs. The results of this paper are beneficial for both policymakers and bankers, as they provide insights into how governance through board characteristics influences credit risk. These results support better decision-making in board appointments and governance practices to improve risk management and reduce non-performing loans. Full article

This study examines the impact of corporate venture capital (CVC) on the labor income share of science and innovation enterprises, focusing on data from China’s Science and Technology Innovation Board (STIB) and Growth Enterprise Market (GEM) between 2010 and 2022. Empirical results reveal a significant inverted U-shaped relationship between CVC shareholding and the labor income share of invested firms. CVC increases the labor income share by enhancing corporate governance, encouraging digital transformation, and improving human capital quality, but this effect diminishes when CVC shareholding exceeds a certain threshold. The moderating role of media attention and the heterogeneity of this relationship across regions and financial conditions are further explored. Additionally, the study identifies a positive U-shaped connection between CVC shareholding and the corporate pay gap, highlighting CVC’s complex role in influencing income inequality within firms. This research contributes to the literature by unveiling the nonlinear effects of CVC on income distribution, offering new insights into its dual role in promoting innovation and equity. Practically, it provides actionable recommendations for firms to optimize CVC ownership and for policymakers to design targeted interventions that address regional and financial disparities. By bridging the gap between CVC investment strategies and labor income fairness, this study lays the foundation for a balanced approach to sustainable economic development. Full article

In the modern corporation, understanding sustainable cost management practices is essential for promoting economic resilience and resource efficiency. This study investigates how ownership structures influence the behavior of selling, and general and administrative (SG&A) costs during periods of sales fluctuations in South Korean firms, with particular attention to Chaebols. Drawing upon agency theory and corporate governance perspectives, we examine whether proxies for agency costs, namely, free cash flow, asset utilization ratios, and operating expense ratios, explain variations in SG&A cost responses to changes in revenue. Utilizing a panel dataset of 4279 firm-year observations from KOSPI-listed companies over the period 2011–2021, we employ Pooled Ordinary Least Squares (OLS), Fixed Effects, Random Effects, and Generalized Method of Moments (GMM) estimations to model SG&A cost behavior. The analysis incorporates regression-based interaction terms that capture asymmetric cost adjustments during sales declines, commonly referred to as cost stickiness. Our findings indicate that firms with concentrated ownership, such as Chaebols, exhibit significantly lower SG&A cost stickiness, reflecting stronger financial discipline and more efficient resource allocation. In contrast, firms with dispersed ownership demonstrate more pronounced cost stickiness, consistent with governance frictions and managerial discretion. These results emphasize the moderating role of ownership structure in cost behavior and highlight its implications for sustainable corporate governance. Our study contributes to the literature on cost management and financial sustainability by offering empirical insights from a distinctive institutional setting. Policy recommendations include enhancing internal controls, promoting transparent cost practices, and encouraging shareholder oversight to reinforce long-term efficiency. Full article

Faced with mounting pressure to achieve high-quality green transformation, manufacturing enterprises are increasingly scrutinized for greenwashing behaviors. This study develops a novel hybrid modeling framework that combines evolutionary game theory with the SEIR epidemic model to investigate the dynamic interactions between environmental regulation, media pressure, and green innovation behavior. The model captures how strategic decisions among boundedly rational actors evolve over time under dual external pressures. Simulation results show that stronger environmental regulatory intensity accelerates the adoption of substantive green innovation and concurrently reduces the media pressure associated with greenwashing. Moreover, while social media disclosure has a limited impact during the early stages of greenwashing information diffusion, its influence becomes significantly amplified once a critical dissemination threshold is surpassed, rapidly transforming latent information into widespread public concern. This amplification triggers significant public opinion pressure, which, in turn, incentivizes local governments to enforce stricter environmental policies. The findings reveal a synergistic governance mechanism where environmental regulation and media scrutiny jointly curb greenwashing and foster genuine corporate sustainability. Full article

This paper empirically investigates the moderating role of the firm’s board characteristics in the relationship between ESG controversies and firm performance. The collected sample includes 461 non-financial companies in 10 MENA countries from 2010 to 2023. Data were collected from Refinitiv Eikon Platform (LSEG). This empirical paper applied panel GMM regression to estimate the relationship. The paper controls for firm characteristics such as firm size and leverage while controlling for macroeconomic variables such as inflation and GDP. The results indicate that there is a negative impact of ESG controversies on the performance of firms in the MENA region. Moreover, the analysis of corporate governance’s moderating role reveals that both board independence and gender diversity substantially diminish the adverse effects of ESG controversies on firm performance, indicating that well-governed firms are more adept at mitigating risks linked to ESG-related controversies. Our results hold based on the robustness of the results. Full article

This study aims to explore the moderating role of corporate governance disclosures on the link between executive board gender diversity and financial performance. Governance disclosures were assessed based on executive managers’ information presented in the companies’ annual reports. The analysis was conducted on Romanian-listed companies from eight industries, covering a time range of ten years. Various robustness tests were used and examined the Blau index apart of the proportion of women managers, as well as different measures for financial performance. The endogeneity issue was solved by the Two-Stage Least Square method and the Generalized Method of Moments. The results revealed that a higher governance disclosure level on executive managers’ characteristics is reflected in increased financial performance. A positive influence was found for the composite financial performance indicator, return on assets, return on equity, and global solvency. Our findings led to the conclusion that the governance disclosure index moderates the relationship between board gender diversity and corporate business performance, and the effect of gender diversity on financial performance will be less positive with a higher level of disclosures on board characteristics. Therefore, managers can filter the quantity and quality of governance disclosure and can monitor the influence of the board’s composition on performance. Full article

This paper introduces the Integrated Model for Sustainable Development (IMSD), a theory-driven governance framework that embeds Corporate Diversity Responsibility (CDR) into climate and energy policy to advance systemic equity, institutional resilience, and inclusive innovation. Grounded in Institutional Theory, the Resource-Based View (RBV), and Intersectionality Theory, IMSD unifies fragmented sustainability efforts across five pillars: Climate Sustainability, Social Sustainability (CDR), Governance Integration, Collaborative Partnerships, and Implementation and Monitoring. Aligned with SDGs 7, 10, and 13, IMSD operationalizes inclusive leadership, anticipatory adaptation, and equity-centered decision-making. It addresses the compounded climate vulnerabilities faced by women and marginalized groups in the Global South, integrating insights from Indigenous resilience and intersectional adaptation strategies. Unlike conventional CSR or ESG models, IMSD institutionalizes diversity as a strategic asset and governance principle. It transforms DEIB from symbolic compliance into a catalyst for ethical leadership, legitimacy, and performance in turbulent environments. The model’s modular structure supports cross-sector scalability, making it a practical tool for organizations seeking to align ESG mandates with climate justice and inclusive innovation. Future empirical validation of the IMSD framework across diverse governance settings will further strengthen its applicability and global relevance. IMSD represents a paradigm shift in sustainability governance—bridging climate action and social equity through theory-based leadership and systemic institutional transformation. Full article

The advancement of sustainable economic development has become a strategic imperative for enterprises aiming to combine financial development with environmental and social responsibility. In this regard, strategic enterprise management (SEM) has a critical role in incorporating the aspects of sustainability into decision making. The present paper suggests a multicriteria decision-making framework that utilizes fuzzy TOPSIS in assessing and ranking sustainability integration aspects in organizations. By considering the intrinsic vagueness of sustainability analysis, the fuzzy TOPSIS model enables the systematic analysis of environmental, social, and governance (ESG) factors by companies for ensuring their alignment to corporate strategic goals. A case study of a major international airport in Greece demonstrates how the proposed methodology assists strategic choice making, balancing economic viability and sustainable value creation. The results show primary trade-offs among human capital investment, environmental footprint reduction, and stakeholder communication, demonstrating how companies can enhance long-term resilience and competitiveness. This research adds to the existing literature by giving an integrated strategic enterprise management framework with the use of decision support instruments to foster sustainability-oriented corporate governance and strategic efficacy. The suggested model is flexible and can be applied in any industry, hence being a benchmark for sustainable business practice. This paper contributes to the literature by integrating fuzzy TOPSIS with balanced scorecard in the context of airport strategic sustainability management, offering both methodological advancement and empirical insights for transport and supply chain enterprises. Full article

In today’s complex business environments, integrating strategic corporate social responsibility (SCSR) is essential for aligning business objectives with societal interests and strengthening organizational resilience. Using Tesla as a case study, we applied stakeholder theory, grounded theory, and the Stimulus-Organism-Response (S-O-R) model to construct a theoretical framework on the impact of SCSR on organizational resilience and to examine the mechanisms underpinning this process. Through the implementation of SCSR, enterprises deeply engage with primary and public stakeholders, establish resilient relationships, and enhance organizational resilience through seven dimensions: development governance, strategic management, relationship, financial, product, cultural, and social. The theoretical framework developed in this study provides a reference for subsequent research on SCSR and organizational resilience, and offers management insights for enterprises to integrate SCSR, enhance organizational resilience, and improve long-term competitiveness. Full article

The United Kingdom has long been a frontrunner in green finance, establishing programs like the Green Finance Institute to promote corporate engagement in sustainable initiatives. The Green Finance Strategy, enacted in 2019, aligns UK financial procedures with international standards, including the EU taxonomy for sustainable Activities. The study examined how sustainable finance enhances the corporate reputation of the firms listed on the London Stock Exchange. A purposive sampling yielded 17 years of data from 143 non-financial companies from the Thomson Reuters Eikon DataStream between 2007 and 2023. In dealing with the issue of endogeneity and auto-serial correlation, the Generalized Methods of Movement (GMM) was employed to provide reliable and unbiased estimation results. The study revealed a positive impact of green bond issues, environmental expenditures, and policies for emission reduction on corporate reputation. The moderating relationship between green bond issues, environmental expenditures, and board diversity revealed a positive and significant relationship with corporate reputation. Managers should ensure that their endorsed activities gain public recognition and align with sustainability goals, particularly by emphasizing the issuance of green bonds in their financing strategy. They should also collaborate with environmental experts and stakeholders to ensure that the outcomes of funded projects are evaluated in line with international ESG standards. Full article