Search Results (100)

This study examines the impact of environmental, social, and governance (ESG) practices on green innovation and financial performance among 174 publicly listed firms across ASEAN countries over the period from 2019 to 2023. Utilizing an unbalanced panel dataset of firms from key ASEAN economies, the analysis employs panel regression techniques. Green innovation performance is measured through innovation disclosures related to environmental technologies, while financial success is assessed via return on assets (ROA) and Tobin’s Q. The findings reveal that environmental and governance disclosure scores positively influence green innovation, whereas social scores exert a more immediate impact on financial performance. Moreover, green innovation is found to partially mediate the relationship between overall ESG practices and long-term market valuation. These results highlight the strategic role of ESG transparency in enhancing innovation-driven competitiveness, responsible business conduct, and sustainable employment across Southeast Asian markets. Implications are discussed for corporate managers, policymakers, and socially responsible investors. The study reinforces the case for ESG-aligned strategy as a pathway to both innovation, inclusive economic growth, and long-term competitiveness in ASEAN markets. Full article

This study utilizes a discrete choice experiment (DCE) to estimate consumer valuation of sustainable aquaculture certification for Atlantic salmon (Salmo salar), one of the most important imported seafood products in South Korea. This experiment investigates consumer preferences across five product attributes: country of origin, product type, preparation method, sustainability certification, and price. Data were collected through an online survey administered by a professional research firm that yielded 24,000 valid choice observations from 1000 respondents. Conditional logit estimates revealed that all specified attributes significantly influenced consumer choices among seafood alternatives. Among the key product attributes, sustainability certification has emerged as the most influential factor affecting consumer decisions. The marginal willingness to pay for sustainably certified aquaculture is estimated to be USD 1.33 per 100 g. These findings provide valuable insights for seafood marketers and policymakers who seek to promote sustainable aquaculture in South Korea. Full article

In this study, we utilize a unique quarterly dataset of non-GAAP earnings to re-examine the “informational” role of non-GAAP earnings from the perspective of value relevance and earnings predictability in the post-Reg G period. We find that non-GAAP earnings are more value relevant and can better predict future operating earnings of a firm compared to equivalent GAAP earnings. Additionally, we also find empirical evidence suggesting that the difference in the value relevance and earnings predictability between non-GAAP and equivalent GAAP earnings can vary across but cannot be completely mitigated by firm-level characteristics, such as the market value of equity, accruals quality, analyst coverage, and managerial ability of a firm. Moreover, our supplementary analysis reveals that the superior value relevance and predictive power of non-GAAP earnings persist even after the SEC’s release of the Compliance and Disclosure Interpretations (C&DI) in 2010. Overall, our empirical evidence suggests a superior “informational” role of non-GAAP earnings to equivalent GAAP earnings in terms of valuation and predictability on future operating performance in the post-Reg G period. Full article

This study examines the influence of ethical leadership on corporate sustainability and financial performance, highlighting the moderating effect of firms’ commitment to the United Nations Sustainable Development Goals (SDGs). Utilizing panel data from 420 automotive companies spanning 2015 to 2024, the analysis applies the System Generalized Method of Moments (GMM) to control for endogeneity and unobserved heterogeneity. All data were gathered from the Refinitiv Eikon Platform (LSEG) and annual reports. Panel GMM regression is used to estimate the relationship to deal with the endogeneity problem. The results reveal that ethical leadership significantly improves corporate sustainability performance—measured by ESG scores from Refinitiv Eikon and Bloomberg—as well as financial indicators like Return on Assets (ROA) and Tobin’s Q. Additionally, firms that demonstrate breadth (the range of SDG-related themes addressed), concentration (the distribution of non-financial disclosures across SDGs), and depth (the overall volume of SDG-related information) in their SDG disclosures gain greater advantages from ethical leadership, resulting in enhanced ESG performance and higher market valuation. This study offers valuable insights for corporate leaders, policymakers, and investors on how integrating ethical leadership with SDG alignment can drive sustainable and financial growth. Full article

Prior research often portrays Corporate Social Responsibility (CSR) as a coercive institutional force compelling firms to passively conform for legitimacy. More recent studies, however, suggest firms actively pursue CSR to gain sustainable competitive advantages. Yet, how and when CSR buffers firms against adverse shocks of crises remains insufficiently understood. This study addresses this gap by using multiple regression analysis to examine the buffering effects of CSR investments during the COVID-19 crisis, which severely disrupted capital markets and firm valuation. Drawing on signaling theory and CSR literature, we analyze the stock market performance of China’s A-share listed firms using a sample of 2577 observations as of the end of 2019. Results indicate that firms with higher CSR investments experienced significantly greater cumulative abnormal returns during the pandemic. Moreover, the buffering effect is amplified among firms with higher debt burdens, greater financing constraints, and those operating in regions with stronger social trust and more severe COVID-19 impact. These findings are robust across multiple robustness checks. This study highlights the strategic value of CSR as a resilience mechanism during crises and supports a more proactive view of CSR engagement for sustainable development, complementing the traditional legitimacy-focused perspective in existing literature. Full article

This study examines the deferred tax valuation allowance disclosures of a sample of venture-capital-backed IPO firms that incurred a net operating loss (NOL) in the period prior to their public offering (IPO). I find that 82 percent of these firms record an allowance that reduces the associated deferred tax asset to zero, that the choice to record the allowance is largely driven by a firm’s history of losses, and that the allowance is associated with lower future book income. I further propose a new explanation for the presence of the allowance: the Section 382 ownership change limitation, which can cause firms to record an allowance independent of their past profitability or expectations about future earnings. I find that firms consider this limitation when recording the allowance, and that controlling for it can enhance the signal regarding future income. 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

This paper investigates the financial performance and corporate governance variables that influence firm valuation. This study analyzes 91 Spanish small and medium-sized enterprises (SMEs) listed on BME Growth using a fixed effects panel data model based on 5760 observations. This study covered a period of five years from 2015 to 2019. This study concludes that profitability, capital structure and ownership concentration are key value drivers, while liquidity and efficiency are not statistically significant and require further contextual examination. Regarding corporate governance, the presence of controlling shareholders was found to have a significant positive impact on firm value, reinforcing the importance of ownership concentration in reducing agency conflicts and enhancing oversight. Other governance frameworks, such as firm structure and managerial concentration, did not exhibit significant effects. Full article

This study investigates the relationship between overconfidence and meme stock valuation, drawing on panel data from 28 meme stocks listed from 2019 to 2024. The analysis incorporates key financial indicators, including Tobin’s Q ratio, market capitalization, return on assets, leverage, and volatility. A range of overconfidence proxies is employed, including changes in trading volume, turnover rate, changes in outstanding shares, and alternative measures of excessive trading. We observe a significant positive relationship between overconfidence (as measured by changes in trading volume) and firm valuation, suggesting that investor biases contribute to notable pricing distortions. Leverage has a significant negative relationship with firm valuation. In contrast, market capitalization has a significant positive relationship with firm valuation, implying that meme stock investors respond to both speculative sentiment and traditional firm fundamentals. Robustness checks using alternative proxies reveal that turnover rate and changes in the number of shares are negatively related to valuation. This shows the complex dynamics of meme stocks, where psychological factors intersect with firm-specific indicators. However, results from a dynamic panel model estimated using the Dynamic System Generalized Method of Moments (GMM) show that the turnover rate has a significantly positive relationship with firm valuation. These results offer valuable insights into the pricing behavior of meme stocks, revealing how investor sentiment impacts periodic valuation adjustments in speculative markets. Full article

This study investigated how corporate maturity—measured through firm age and lifecycle stage—moderates the value relevance of Environmental, Social, and Governance (ESG) disclosures in a frontier market context, using Bangladesh as a case study. Drawing on panel data from 2011–2012 to 2023–2024 for 86 publicly listed non-financial firms, the study employed a modified Ohlson valuation framework, panel regression analysis, and multiple robustness techniques (2SLS, PSM). ESG disclosure was measured using a researcher-developed index aligned with international reporting standards (GRI, SASB, TCFD, UN SDGs). ESG disclosures are positively associated with firm value, but this relationship is significantly moderated by corporate maturity. Younger firms exhibit a stronger valuation effect from ESG transparency, driven by higher signaling and legitimacy needs. In contrast, mature firms experience a diminished marginal benefit, reflecting routine compliance rather than strategic differentiation. These findings challenge the uniform application of ESG assessment models and suggest the need for lifecycle-adjusted disclosure ratings, particularly in nascent regulatory environments like Bangladesh. Investors and regulators should tailor ESG evaluation criteria by firm age and industry sustainability exposure. Younger firms, often overlooked, may carry outsized ESG signaling value in emerging markets. Enhancing ESG transparency among younger firms can foster greater stakeholder trust, support inclusive growth, and strengthen social accountability in emerging economies. This study contributes to the ESG literature by introducing corporate maturity as a key moderating variable in value relevance analysis. It provides new empirical insights from a developing economy and proposes lifecycle-based adaptations to global ESG rating methodologies. Full article

In response to growing environmental concerns, hydrogen production has emerged as a critical element in the transition to a sustainable global economy. We evaluate the impact of hydrogen production on both the financial performance and market value of energy sector companies, using balanced panel data from 288 European-listed firms over the period of 2018 to 2022. The findings reveal a paradox. While hydrogen production imposes significant financial constraints, it is positively recognized by market participants. Despite short-term financial challenges, companies engaged in hydrogen production experience higher market value, as investors view these activities as a long-term growth opportunity aligned with global sustainability goals. We contribute to the literature by offering empirical evidence on the financial outcomes and market valuation of hydrogen engagement, distinguishing between production and storage activities, and further categorizing production into green, blue, and gray hydrogen. By examining these nuances, we highlight the complex relationship between financial market results. While hydrogen production may negatively impact short-term financial performance, its potential for long-term value creation, driven by decarbonization efforts and sustainability targets, makes it attractive to investors. Ultimately, this study provides valuable insights into how hydrogen engagement shapes corporate strategies within the evolving European energy landscape. Full article

The world is characterised by the growing volumes and flow of goods, which, amid benefits to economic development, result in negative externalities affecting the sustainability of cities. Although numerous studies have analysed the locational patterns of logistics facilities in cities, further research is required to examine their real estate patterns and trends. The aim of the paper is, therefore, to analyse the value of land accommodating logistics facilities in the City of Cape Town municipality, South Africa. Given the lack of dedicated geo-spatial data, logistics firms were searched on Google Maps, utilising a combination of aerial photography and street view imagery. Three main attributes of land parcels hosting logistics facilities were thereafter captured from the municipal cadastral information: property extent, street address, and property number. The latter two were used to extract the 2018 and 2022 property market values from the valuation rolls on the municipal website, followed by statistical, spatial, and geographically weighted regression (GWR) analyses. Zones near the central business district and seaport, as well as areas with prime road-based accessibility, had high market values, while those near the railway stations did not stand out. However, GWR yielded weak relationships between market values and the locational variables analysed, arguably showing a disconnect between spatial planning and logistics planning. Towards augmenting sustainable logistics, it is recommended that relevant stakeholders strategically integrate logistics into spatial planning, and particularly revitalise freight rail to attract investment to logistics hubs with direct railway access. Full article

The link between ESG and financial performance is still under debate. In this study, we explore which aspects of ESG specifically drive market valuations through both systematic and idiosyncratic risk channels. We analyze the impact of the three core ESG pillars, 10 subcategories, and associated controversies on market valuations in the energy sector. This analysis reveals that the environmental factor has a stronger impact (regression coefficient = 0.05) than the governance factor (regression coefficient = 0.003), emphasizing the need to prioritize environmental performance in ESG strategies. The positive coefficients for environmental resource use (0.005) and innovation (0.008) indicate that investments in efficiency and clean technologies are beneficial, while the negative coefficient for emissions (−0.004) underscores the risks associated with poor emissions management. These findings suggest that environmental risks currently outweigh governance risks for the energy sector, reinforcing the importance of aligning governance practices with environmental goals. To maximize ESG effectiveness, energy firms should focus on measurable improvements in resource efficiency, innovation, and emissions reduction and transparently communicate this progress to stakeholders. The evidence suggests that energy firms approach the ESG landscape differently, with sustainability leaders benefiting from higher valuations, particularly when ESG efforts are aligned with core competencies. However, many energy companies under-invest in value-creating environmental initiatives, focusing instead on emission management, which erodes value. While they excel in emission control, they lag in innovation, missing opportunities to enhance valuations. This underscores the potential for ESG risk analysis to improve portfolio performance, as sustainability can both create value and mitigate risks by factoring into valuation equations as both risks and opportunities. This study uniquely contributes to the ESG–financial performance literature by disentangling the specific ESG dimensions that drive market valuations in the energy sector, revealing that value is created not through emission control but through strategic alignment with eco-innovation, governance, and social responsibility. Full article

The aim of this study was to investigate the preferences of young adults in the Polish apple market in response to the declining consumption of these fruits. To address the research questions, a study was conducted among young adults using a custom-designed online questionnaire. The research sample consisted of 729 participants. The data were analyzed using ANOVA, and due to the nature of the data, Wilcoxon tests were also employed to examine differences. The most frequently purchased fruits among young adults were bananas and apples; however, strawberries and raspberries were the most favored. The most preferred apple cultivars were bicolored (e.g., Jonagored) and red (e.g., Gala Royal), while yellow cultivars (e.g., Golden Delicious) were perceived as the least attractive. Young consumers favored apples that were juicy, firm, and moderately sweet. This study demonstrated that the skin color of an apple was associated with expectations regarding its firmness and sweetness. Apples with intense coloration (dark red and green) received the highest valuations, particularly when organically grown. In contrast, apples from conventional production systems were valued below their market price by young consumers, indicating the need for strategies aimed at enhancing their perceived value. Full article

This study examines the causal and dynamic effects of carbon information disclosure on firm value, using a policy-driven setting in China’s carbon-intensive industries. In 2018, the Ministry of Ecology and Environment implemented a regulatory policy requiring internal carbon accounting and third-party verification for carbon-intensive enterprises, without mandating public disclosure. This exogenous policy shock offers a quasi-natural experiment to investigate how firms in carbon-intensive industries respond to environmental mandates through voluntary disclosure and how such disclosure affects their market valuation. Employing a difference-in-differences framework combined with two-stage least squares estimation, we identify a significant increase in carbon information disclosure following the policy intervention. This disclosure leads to a positive and growing effect on firm value, particularly when sustained over multiple years. Moreover, the valuation effect is moderated by regional environmental regulation: firms in areas with lower enforcement intensity benefit more from disclosure, as the signal is perceived to be more voluntary and credible. These findings provide robust causal evidence on the role of carbon information disclosure in shaping market outcomes under regulatory pressure. The study contributes to the literature on environmental regulation and corporate financial behavior in emerging markets. Full article