This study examines the impact of firms' environmental, social and governance (ESG) initiatives on financial performance. It also compares the valuation effects of corporate social performance initiatives in developed and emerging market firms. The study was based on ESG ranking scores in the Thomson Reuters database, and the sample comprised 1317 emerging market firms and 3569 developed market firms. In comparison with developed market firms, emerging market firms had higher ESG combined scores, ESG Controversy scores, category scores of resources use, workforce, human rights and corporate social responsibility strategy scores. This study finds that stakeholder initiatives positively impact valuation effects, based on all sample results. Firm-generated controversies may decrease valuation effects in the stock market. Results indicated that ESG initiatives have a significant positive to the firm performance. The presence of independent board members and ownership by investors is a positive determinant for value creation. The adoption of best practice corporate governance principles is an important determinant of the valuation of firms. Firms' propensity to use defence mechanisms decreases valuation effects. Developed market firms received positive valuation effects due to ESG initiatives.Sustainability 2020, 12, 26 2 of 21 pollution abatement, which would lead to value creation in the form of improved productivity, corporate reputation and market share. The stakeholder theory assumes much significance to define the appropriate casual relationships between CSP and CFP [4,5]. The trade-off hypothesis indicates that resource allocation aimed at achieving social goals may add to the costs for the firms and prevent profit maximisation. Traditional theorists indicated that CSP and CFP are negatively related [6,7].In a modern context, firms must focus on profitability, growth potential and social relationships to emerge successful [8,9]. A social relationship reflects a firm's diverse commitment to its stakeholders other than profitability and growth potential. It encompasses diverse relationships, such as social, governance and environmental initiatives. The firm's investment in socially responsible behaviour, such as investments directed towards pollution reduction efforts or energy saving technologies, positively impacts financial performance.The principles of CSR indicated that firms have moral obligations towards society, which are beyond the concept of profit maximisation [10]. Firms create environmental costs through their business operations and are responsible for alleviating these problems [11]. Firms' socially responsible actions can serve business interests and enhance financial performance [12,13].Social responsibility has great significance and relevance in academia and business management. About 50% of the global institutional asset base was managed by Principles for Responsible Investment signatories, demonstrating the commitment of financial markets towards the adoption of ESG criteria for investment de...

Overall, the study makes a significant contribution to healthcare organizations, better health outcomes for patients and better quality of life for the community.

From the upper echelons perspective, we investigate the financial leverage decision of publicly listed companies in Bursa Malaysia for the period from 2002 to 2011. Using pooled OLS and fixed-effect regressions, we examine the impacts of CEO personal characteristics on financial leverage. Our measures of CEO personal characteristics such as CEO overconfidence based on CEO profile photo, CEO age, and CEO prior experience are significantly and negatively related to leverage. However, CEO education level and CEO tenure are significantly and positively related to leverage. Furthermore, we partition our sample of companies based on CEO age and CEO education level. In the CEO-age group, we find that female CEOs are greater risk takers as compared to male CEOs in Malaysia. With respect to CEO education level, we show that younger CEOs, female CEOs, and longer-serving CEOs are risk takers and more aggressive. This paper contributes to the debate of the UET as well as determinants of leverage decision from several dimensions. First, this is the first study that investigates the impacts of CEO personal characteristics on financial leverage of Malaysian firms. Second, we make the first attempt by classifying CEO certain characteristic (age and educational level) into groups to make a further comparison on the impact of CEO personal characteristics on financial leverage. Third, this study uses a larger data sample and a longer study period than the previous studies in the literature. Fourth, the paper also makes a methodological contribution. This study employs different methods (pooled OLS regression and fixed effects panel regression) for the analysis. It is hoped that the result of this paper can fill the gap of the literature on the relationship between CEO personal characteristics and financial leverage as explained by Upper Echelon Theory.

Purpose-The purpose of this paper is to investigate the impact of managerial overconfidence on corporate financing decision and the moderating effect of government ownership on the relationship between managerial overconfidence and corporate financing decision. Design/methodology/approach-Pooled OLS, fixed effect models (FEM), and Tobit regressions are employed to examine the relationship between managerial overconfidence, government ownership and corporate financing decision of publicly listed companies in Malaysia for the period of 2002-2011. Findings-The authors conclude that first, CEO overconfidence is significantly and negatively related to corporate financing decision; second, a higher degree of managerial overoonfidence would result in lower leverage in GI.Cs, whereas the effect does not significantly exist in NGLCs; third, a larger ownership of government in a firm will reduce the negative effect of managerial overconfidence on corporate financing decision; fourth, the moderating effect of government ownership on the association between managerial overconfidence and corporate financing decision in GLCs is more effective than NGLCs; and fifth, government intervention plays its role as moderating effect on the relationship between managerial overconfidence and corporate financing decision in firms with lower ownership concentration but not in firms with high ownership concentration (more or equal than 50 percent). Practical implications-The finding implies that the moderating effect of government ownership on the association between managerial overconfidence and corporate financing decision in GLCs is more effective than NGLCs. Originality/value-The authors make the first attempt to test the moderating effect of government ownership on the relationship between ownership concentration and corporate financing decision.