Search Results (136)

We aim to assess the difference in integrated report conformity towards the IIRC framework for companies who produce it voluntarily and those who were enforced. We study Brazilian companies because due to regulatory requirements, state-owned companies are mandated to publicly disclose an integrated report, while others may choose to do so voluntarily. The analysis involved a total of 1673 observations in panel data from 2018 to 2021 and was developed through six explanatory econometric models. A checklist based on the International Integrated Reporting Council (IIRC) framework was used to conduct a survey on the reports to assess their conformity levels. The conformity level of listed companies that disclose IR is higher than that of state-owned companies, and it is primarily influenced by firm size, age, and board composition (board size and diversity). The hypothesis that mandatory disclosure would be associated with higher conformity level was not supported by our result, and empirical evidence is provided on the low effectiveness of integrated reporting enforcement. Moreover, evidence that women’s participation on the board of directors enhances IR disclosure may encourage future studies to delve deeper into this issue of diversity. Given that the IR framework reflects a holistic view of value creation, the study also reinforces the potential of Integrated Reporting as a tool to support and communicate alignment with the United Nations Sustainable Development Goals (SDGs). Full article

The prevailing view is that ESG performance contributes to corporate financial stability, particularly regarding long-term sustainability objectives. However, there is a notable lack of critical research exploring its short-term financial effects, especially within capital-intensive sectors experiencing green transformation. This study examines the theoretical gap by investigating whether increased ESG performance may unintentionally heighten the financial burden and default risk in the short run. To verify the stability of each variable in the series, we employed the short-panel unit root test on panel data from 234 Chinese energy industry companies covering the years 2015 to 2023. Including enterprise fixed effects as well as time fixed effects, we find that higher ESG ratings increase the possibility of default risk in the Chinese energy sector. This effect remains robust after controlling firm size, financial leverage, return on assets, return on equity, earnings per share, beta and firm age. In addition, we conduct robustness checks using alternative default risk measures, both endogeneity- and component-based, and the outcomes demonstrate that the impact is substantial and consistent. Consequently, we may draw the conclusion that raising the ESG rating has an adverse effect on reducing corporate default risk, which fills the knowledge gap regarding the influence of listed companies’ default risk on China’s energy sector. Moreover, it has been found that green innovation plays a strengthening role in the analysis of the interaction term between green innovation and ESG on default risk. This suggests that while green innovation is a strategic initiative aimed at long-term sustainability, it requires a significant amount of capital and resources in the short term, which may result in higher default risk in the beginning. Full article

This study investigated the effects of firm characteristics (external investment and co-CEO structures), managerial characteristics (CEO’s experience and age), and COVID-19 on earnings management in small- and medium-sized enterprises (SMEs). Examining the data of 18,873 Korean SMEs between 2015 and 2020, this study determined the factors influencing discretionary accruals in SMEs. Discretionary accruals were estimated using firms’ financial statements, and the effects of firm and CEO characteristics on the magnitude of the absolute value of discretionary accruals were estimated using random effects panel regression models. The results revealed that SMEs with co-CEO structures (vs. those with single-CEO structures), those led by more experienced CEOs (vs. those with less experienced CEOs), and those led by older CEOs (vs. those with younger CEOs) engage in less earnings management. Conversely, SMEs with external investors engage in greater earnings management than those without external investors. The results also showed that SMEs engaged in less earnings management during the COVID-19 period than during non-COVID-19 periods. Overall, this study is significant because it focuses on SMEs, a group often overlooked in earnings management research, and provides empirical evidence of how COVID-19, a global economic shock, influenced SMEs’ earnings management practices. Full article

This study aimed to investigate the production of nanoemulgels structured with flaxseed fiber, designed to simulate salad dressings. For this purpose, the influence of microfluidizer passes (from one to four) on physicochemical and rheological properties was determined, followed by an assessment of thermal behavior. Rotor–stator homogenization followed by microfluidization were employed to produce nanoemulgels, which were characterized using laser diffraction, multiple light scattering, and rheological measurements. The resulting systems exhibited monomodal particle size distributions with mean diameters below 220 nm. Increasing the number of microfluidizer passes from one to four led to slight reductions in particle size, although they were not statistically significant. The formulation with two passes demonstrated superior physical stability during aging studies. Rheological evaluation indicated enhanced gel-like behavior with up to three passes, whereas excessive energy input (four passes) slightly compromised structural integrity. The linear viscoelastic region decreased notably after the first pass but remained relatively stable thereafter. The two-pass nanoemulgel, identified as the optimal formulation, was further tested for thermal stability. Temperature increases (5–20 °C) led to minor decreases in viscosity and firmness, yet the structure remained thermally stable. These findings support microfluidization as an effective strategy for developing stable flaxseed fiber-based nanoemulgels, with potential applications in functional food systems. Full article

This study investigates the impact of environmental, social, and governance (ESG) disclosure on value creation in a balanced panel of 100 non-financial Sharia-compliant firms listed on the Saudi Stock Exchange over the period 2014–2023. The analysis employs a combination of econometric techniques, including fixed effects models with Driscoll–Kraay standard errors, Pooled Ordinary Least Squares (POLS) with Driscoll–Kraay standard errors and industry and year dummies, and two-step system generalized method of moments (GMM) estimation to address potential endogeneity and omitted variable bias. Value creation is measured using Tobin’s Q (TBQ), Return on Assets (ROA), and Return on Equity (ROE). The models also control for firm-specific variables such as firm size, leverage, asset tangibility, firm age, growth opportunities, and market capitalization. The findings reveal that ESG disclosure has a positive and statistically significant effect on firm value across all three performance measures. Furthermore, firm size significantly moderates this relationship, with larger Sharia-compliant firms experiencing greater value gains from ESG practices. These results align with agency, stakeholder, and signaling theories, emphasizing the role of ESG in enhancing transparency, reducing information asymmetry, and strengthening stakeholder trust. The study provides empirical evidence relevant to policymakers, investors, and firms striving to achieve Saudi Arabia’s Vision 2030 sustainability goals. Full article

This study investigates the relationship between CEO characteristics and firm performance across emerging and developed economies using both panel regression and machine learning techniques. Drawing on Upper Echelons Theory, we examine whether CEO age, tenure, gender, founder status, and appointment origin influence Return on Assets (ROA), Return on Equity (ROE), and market-to-book ratio. We apply the fixed and random effects models for inference and deploy random forest and XGBoost models to determine the feature importance of each CEO trait. Our findings show that CEO tenure consistently predicts improved ROE and ROA, while CEO age and founder status negatively affect firm performance. Female CEOs, though not consistently significant in the baseline models, positively influence market valuation in emerging markets according to interaction models. Firm-level characteristics such as size and leverage dominate CEO traits in explaining performance outcomes, especially in machine learning rankings. By integrating machine learning feature importance, this study contributes an original approach to CEO evaluation, enabling firms and policymakers to prioritise leadership traits that matter most. The findings have practical implications for succession planning, diversity policy, and performance-based executive appointments. Full article

In emerging economies, where the legislative and economic landscapes may significantly differ from those of advanced economies, accrual-based earnings management (AEM) is especially problematic for financial disclosure and investor trust. This paper conducts a systematic literature review and a bibliometric analysis to evaluate the incentives for AEM in developing countries and to understand the evolution of the AEM domain within emerging countries. For this purpose, 312 journal articles from ResearchGate, Google Scholar, ScienceDirect, Google, and Scopus, covering the period from 2000 to 2024, were reviewed under various thematic areas. The findings highlighted multiple significant motivators for AEM within developing markets, encompassing financial distress, loss avoidance, profitability pressures, high leverage, weak corporate governance structures and processes, diverse ownership structures (such as concentrated ownership, family ownership, institutional ownership, government ownership, and insider ownership), market performance indicators, political ties, weak regulatory systems, as well as factors such as executive compensation, tenure, career retention, agency issues, investor expectations, audit quality, economic crises, and firm-specific characteristics like size, reputation, and age. This research contributes to existing knowledge by examining the motivations behind AEM in emerging economies, underscoring the need for tailored regulatory frameworks and strong governance structures and processes to address the unique challenges developing nations face. For regulators and policymakers, these findings emphasize the need for robust regulatory frameworks, more stringent auditing protocols, and improved corporate governance structures to discourage business executives from engaging in AEM practices. Full article

The successful introduction of new cultivars depends on the evaluation of complex parameters essential for the consumers, market, and fruit producers. A new scab-resistant apple cultivar, ‘Wuranda’ (SQ159/Natyra^®/Magic Star^® × Honeycrisp), recently introduced in Norway and managed under the name Fryd^©, is prone to biennial bearing. Therefore, one of the first tasks, investigated in Southwestern Norway by the Norwegian Institute of Bioeconomy Research, NIBIO-Ullensvang in 2021–2024, was the establishment of optimal crop load level based on the combination of productivity, fruit quality, and return bloom. The apple cultivar Fryd (‘Wuranda’) was propagated on ‘M.9’ rootstock and planted in 2019. The trial was performed in the same orchard for four consecutive years, starting three years after planting. Crop load level affected average fruit mass but had no impact on cv. Fryd fruit quality parameters at harvest such as blush, ground color, firmness, soluble solid content, or starch degradation. Fruit size variation was diminished by crop load regulation, and most fruits fell into 2–3 grading classes. Crop load, not the yield per tree, was the determining factor for the return bloom. The optimal crop load level depended on the orchard age. To guarantee a regular bearing mode of cv. Fryd planted on M.9 rootstock at a 3.5 × 1 m distance and trained as slender spindle, crop load of 5.5–6 fruits cm⁻² TCSA (trunk cross-sectional area) in the 3rd year, 7.5–8 fruits cm⁻² TCSA in the 4th year, and 6.5–7 fruits cm⁻² TCSA in the 5th year should be maintained. Full article

As sustainability reporting and ESG disclosure gain global importance, understanding the factors influencing ESG outcomes becomes crucial for policymakers, investors, and corporate decision-makers. China, a major player in the global economy, has recently taken steps to align its stock exchanges with international ESG reporting standards. In this context, the study examines the individual and joint effects of digital transformation and CEO compensation on ESG performance, considering moderating factors such as firm size, state ownership, and CEO age and gender. The research employs a comprehensive dataset containing 16,205 firm-year observations from 2018 to 2022, combining financial data, ESG ratings, and a matrix of word frequencies related to digital transformation extracted from annual reports. The study adopts a firm-year two-way fixed effect model, utilizing panel data and control variables to address potential endogeneity concerns and unobserved firm heterogeneity. The findings provide evidence supporting the positive impact of digital transformation and CEO compensation on ESG performance. The level of digital transformation is positively associated with ESG performance. This relationship is stronger for larger firms and firms with older CEOs, while state-owned enterprises show mixed results compared to non-SOEs. However, the effect of CEO compensation and ESG performance is stronger for male CEOs. This study thus contributes to the growing literature on ESG performance, digital transformation, and executive compensation by providing insights into their relationships in the context of Chinese listed companies. Full article

This study explores the intricate interconnections between greenwashing, environmental performance (ESG), firm-specific characteristics, board composition, firm age, size, leverage, carbon emissions (CO₂), and financial performance. By applying a combination of panel VAR/GMM estimation, robust least squares regression, and Granger causality tests, the research draws upon comprehensive data spanning from 2009 to 2022 sourced from the Chinese Research Data Services Platform (CNRDS), Bloomberg, and Refinitiv. The dataset comprises 312 listed Chinese firms, yielding a total of 5335 observations. The findings reveal that past return on equity acts as a reinforcing mechanism for both financial performance and ESG outcomes, as it positively affects subsequent returns and environmental engagement. However, its influence on firm size, board structure, and Tobin’s Q is statistically insignificant. Additionally, greenwashing demonstrates a dual character: while it reflects strong internal consistency, it also significantly shapes environmental outcomes and market perceptions. Firm size stands out as a pivotal determinant. It exhibits high persistence over time and plays a crucial role in shaping governance structures and capital allocation decisions. Moreover, board composition is positively associated with firm size. Leverage and return on assets show consistent temporal persistence and exert substantial influence on various firm attributes. Although leverage may contribute positively under favorable conditions, its overall impact on sustainability and governance practices appears limited. Higher carbon emissions are associated with increased ESG disclosures, whereas stronger ESG performance contributes to emission reduction and modestly enhances financial outcomes. Tobin’s Q also emerges as a critical factor, significantly influencing sustainability practices. This suggests that firms respond to investor expectations by improving their ESG performance. Results from the robust least squares regression underscore the dominant roles of firm size, Tobin’s Q, and leverage in driving financial performance. In contrast, ESG scores, CO₂ emissions, and greenwashing do not exhibit any statistically significant direct effects on financial performance. Granger causality tests confirm unidirectional relationships from financial performance to key structural variables such as size, leverage, firm age, and Tobin’s Q. A notable bidirectional causal link is observed between return on assets and return on equity. However, sustainability and governance-related variables show no causal impact on financial performance. Overall, the study acknowledges limitations and offers policy recommendations along with directions for future research. Full article

Durian (Durio zibethinus Murr.) is a major economic crop in Thailand, with the ‘Monthong’ cultivar being particularly valued for its commercial significance and extensive cultivation in northern Thailand. However, the thick, hard shell of durian complicates ripeness assessment based on external appearance, often leading to premature harvesting and unripe fruit sales. Variations in consumer preferences for different ripeness stages present challenges in meeting market demands. Due to the absence of a definitive harvest index for ‘Monthong’ durian, this study aims to (1) evaluate the potential of fruit shell color composition as an indicator of maturation stage and (2) assess the impact of harvest maturity on fruit quality and antioxidant content. A completely randomized design (CRD) was employed in the experiment. Fruits were collected at intervals of 15 days from 15 to 135 days after full bloom (DAFB). The results showed that fruit circumference and length increased progressively with age, with maximum fruit size observed at 90–135 DAFB. Fruit weight, firmness, dry matter, total phenolics, flavonoids, β-carotene, lycopene, and antioxidant activity peaked at 120 DAFB. The values recorded at this stage were: fruit weight (3652.30 g), firmness (42.08 N/cm²), dry matter (37.13%), total phenolics (43.98 mg/100 g fresh weight (FW)), flavonoids (8.33 mg catechin/100 g FW), β-carotene (1.35 mg/100 g FW), lycopene (53.98 mg/100 g FW), and antioxidant activity (6.32 mg TE/100 g FW). The highest total soluble solids (TSS) content was observed at 135 DAFB, with a value of 25 °Brix. These findings indicate that: (1) maturation stages can be effectively differentiated using shell color; (2) ‘Monthong’ durians reach their maximum size at 90 DAFB; (3) fruits harvested at 90–105 DAFB exhibit high firmness and low sweetness, making them suitable for markets prioritizing texture; (4) fruits harvested at 105–120 DAFB exhibit lower firmness and higher sweetness, making them preferable for direct consumption; and (5) total soluble solids, acidity, phenolics, flavonoids, β-carotene, lycopene, and antioxidant activity increase with maturation. These insights provide a valuable reference for optimizing harvest timing to meet specific market and consumer preferences. Full article

This study examines how board diversity affects the capital structure decisions of United Kingdom (UK)-listed firms on the London Stock Exchange (LSE) under varying market conditions for the period from 2002 to 2021. Data were gathered from BoardEx, ORBIS, and DataStream databases. Linear regression and fixed-effect models were used, along with transition two- and three-regime regression models. The findings reveal that educational diversity consistently negatively affects capital structure across all market conditions. Gender diversity and board independence improve capital structure, except in extreme market states. However, age diversity negatively influences capital structure only in extremely bad market conditions, while board size positively impacts capital structure in good, moderate, and extremely good markets. Nationality diversity has no significant effect across all market conditions. These results align with pecking order, trade-off, and agency theories, emphasizing the need to balance debt and equity. This study highlights the importance of tailoring board composition to market conditions. Enhancing gender diversity and board independence can improve debt financing, especially in stable markets. Companies are encouraged to continually assess board diversity to align with shifting market dynamics for better capital structure decisions. Full article

Nigerian banks encounter persistent difficulties in efficiently managing and disclosing credit and liquidity risks, considerably affecting their financial performance and shareholders’ confidence. This study, therefore, examined the effect of risk-management practices and disclosures on the financial performance of Nigerian commercial banks. The population of the study comprised 13 Nigerian commercial banks, of which 12 were purposively chosen, subject to data availability. The data explored in this study originate from World Development Indicators and the annual reports and accounts of the selected Nigerian commercial banks from 2012 to 2023. The data analysis technique used was panel regression analysis, which was further extended to the generalized method of moments in a bid to account for potential endogeneity. The study made use of EViews 12 software to analyse the data. The results reveal that liquidity risk disclosure and firm size had significant and positive effects on financial performance, while credit risk disclosure, credit risk, firm age, and leverage had significant and negative effects. This study concludes that credit risks significantly undermine commercial banks’ financial performance, as an upsurge in non-performing loans results in reduced financial performance. Conversely, effective liquidity risk disclosure characterized by transparent reporting on liquidity position was found to enhance financial performance. This study, therefore, recommends, among others, that banks should strengthen their credit risk assessment framework and enhance transparent risk reporting to improve performance and financial stability. Full article

This study examines the influence of leaders’ artificial intelligence symbolization on job-crafting behaviors, highlighting both positive and negative consequences in Chinese small and medium-sized firms. This research utilizes signaling theory to investigate the impact of leaders’ visible adoption of AI on employees’ readiness for change, perceived threats, and job-crafting behaviors. This study examines the moderating influence of organizational support to understand its amplifying and decreasing effects. This work utilizes Python-based statistical tools to provide a novel approach for evaluating behavioral data in social science research. The results reveal that leaders’ AI symbolization significantly improves employees’ readiness for change and promotes proactive job crafting. Conversely, symbolic actions may exacerbate perceived risks, adversely affecting job-crafting behaviors. Organizational support is essential to enhancing the beneficial impacts of AI symbolization on change readiness while alleviating its adverse consequences on perceived threats. These results show how crucial symbolic leadership is for getting people to use new technology and making staff more flexible in SMEs that use AI. By offering organizational training and resources, leaders may optimize favorable results and mitigate adverse effects. This study highlights its significance regarding change readiness, perceived threats, and job crafting. Furthermore, it underscores Python’s (3.9) potential as a groundbreaking tool for enhancing behavioral research in the age of AI. Full article

This study investigates the effect of digital transformation on non-financial firms’ adjustment of the capital structure in European countries while controlling for firm characteristics (firm size, tangibility, profitability, and non-debt tax shields), board characteristics (board size, board gender diversity, and board meetings), and macroeconomic variables (GDP and inflation). Data were collated from the platform Refinitiv Eikon (LSEG). The final sample size was 514 companies during the 2010–2023 period. Panel GMM regression was used to thoroughly investigate the impact of digital transformation on the adjustment of capital structure. The results show that digital transformation improves capital structure adjustments. Based on the results of panel GMM regression, our results hold and confirm that there is a positive significant impact of digital transformation on the adjustment of capital structure. The main recommendation for businesses and policy makers is to successfully enter the digital age. Full article