Corporate Sustainability and Financial Performance: The Moderating Effect of CEO Characteristics

Almulhim, Abdulateif A.; Aljughaiman, Abdullah A.

doi:10.3390/su151612664

Cited by 7 publications

(4 citation statements)

References 80 publications

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“…Huh et al (2022) [101] examined the structural relationship between ESG management, corporate reputation, and financial performance and found that all components of ESG management had a significant and positive impact on corporate reputation. Luan and Wang (2023) [102] However, Almulhim and Aljughaiman (2023) [104] revealed that firms with more ESG activities tend to have negative financial performance. In Yang et al [105], among ESG activity variables, only governance was found to have a significant negative impact on financial performance, and environmental and social variables were found to have no significant impact on financial or non-financial performance.…”

Section: Esg Managementmentioning

confidence: 99%

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Lee,

Kim

2024

Sustainability

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This study empirically examines factors that can influence the sustainable corporate performance of Korean business-to-business (B2B) companies with the help of unique survey data. Factors such as technological capability, the chief executive officer (CEO)’s risk-taking propensity, B2B seller skill, and key account management (KAM) are analyzed to clarify their impact on sustainable financial and non-financial performance. In particular, given that environment, society, and governance (ESG) reporting has recently been widely recognized as an important evaluation factor for companies, we look at the mediating effects of ESG management on sustainable business performance. The results show that the CEO’s risk-taking propensity and B2B seller skill significantly impact the company’s sustainable financial performance, while technological capability and the CEO’s risk-taking propensity significantly impact sustainable non-financial performance. The fact that a CEO’s risk-taking propensity affects both sustainable financial and non-financial performance indicates the importance of entrepreneurial competency in the sustainability of the company. Furthermore, the findings reveal that ESG management plays a crucial role in sustainable corporate performance. The mediating role of ESG management allows technological capability, B2B seller skill, and KAM to influence sustainable financial performance significantly. Likewise, all of the explanatory factors contribute to the company’s sustainable non-financial performance through ESG management. The findings are important for both practitioners and scholars because they emphasize the need to establish an optimal ESG management strategy for corporate survival and sustainability. Furthermore, this study underscores that ESG management should be implemented by all organizational members, from CEOs to employees. Future research will include more comprehensive samples and analyze various strategic factors not covered in this study to derive effective ways by which companies can increase their performance and sustainability. We will also explore the factors that contribute to good ESG management practices.

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Section: Esg Managementmentioning

confidence: 99%

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Lee,

Kim

2024

Sustainability

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“…Overall, the theory suggests that the personal attributes of the top decisionmakers are enduring characteristics that reflect firm outcomes, e.g., financial and environmental performance, and corporate strategies and effectiveness. Notably, the literature has documented the essential roles of CEOs in shaping the sustainable and environmental strategies of firms, i.e., their environmental policies and practices [12,17,[34][35][36]. Furthermore, CEOs are also responsible for the deployment of the financial resources of firms, which can be distributed to implement long-term strategic environmental management [37].…”

Section: Ceos and Corporate Environmental Decisionsmentioning

confidence: 99%

“…A substantial amount of prior literature has reported the significant impacts of the CEO's age and educational background on a firm's corporate social responsibility in general and on environment-related matters in particular [8][9][10][11]. For instance, Almulhim and Aljughaiman [12] showed that CEO attributes, such as CEO gender, education, and tenure, influence the relationship between the environmental, social, and governance (ESG) level and corporate performance.…”

Section: Introductionmentioning

confidence: 99%

Influence of Cultural and Environmental Values of CEOs on Greenhouse Gas Emission Intensity

Aljughaiman,

Cao,

Albarrak

et al. 2024

Sustainability

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The main objective of this study is to examine the influences of two novel characteristics of the foremost executive firm managers, i.e., the environmental and cultural values of CEOs, on corporate climate change performance. Employing a sample of firms listed in the FTSE250 covering the 2008–2018 period, we found that firms run by CEOs with environmentally friendly backgrounds and high ‘green’ cultural values are more inclined to aim for better (lower) greenhouse gas emissions. The findings hold after accounting for other relevant governance characteristics, accounting and market indicators, highly carbon-intensive industries, and potential endogeneity issues. Intriguingly, we also found that the effect of CEO environmental values is more pronounced than that of CEO cultural values. Our findings have implications for corporate management and regulators of climate change concerns and corporate environmental performance. That is, firm management is advised to assign CEOs with environmentally friendly backgrounds and high ‘green’ cultural values to lower greenhouse gas emissions.

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“…However, we used two criteria to filter our data. First, banks that have not provided governance or fintech data for a minimum of three years are dropped from our sample (Almulhim, 2023;Almulhim and Aljughaiman, 2023). Besides, banks that were merged during the study period were dropped from the sample (Almulhim, 2022).…”

Section: Data Samplementioning

confidence: 99%

Board Structure and Financial Technology in Banks: Gulf Countries

Almulhim

2023

HMS-SJKFU

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This study examines the impact of board composition on the financial technology of banks listed on the stock exchanges of the Gulf Cooperation Council (GCC) countries. The study focuses on the size of the board, the independent members, the number of board meetings, and their impact on mobile banking, automated teller machines, point-of-sale terminals, and Mada Atheer, which are used as proxies for financial technology. In addition to the Ordinary Least Squares (OLS) method, the study uses the Generalized Method of Moments (GMM) system to control the endogeneity and heteroscedasticity issues. The sample consists of all banks listed in the GCC over eleven years from 2010 to 2020. The study found that the size of the board, the independent directors, and the number of board meetings are all positively and significantly associated with banks' financial technology. Regarding the financial characteristics of banks, the study found that banks' age and financial performance are positively and significantly associated with financial technology, while financial leverage is negatively related to financial technology. The findings of this study have implications for boards of directors of banks, which should continue to invest in banks' financial technology to improve their profitability and competitiveness. KEYWORDS Banking sector, board composition, corporate governance, financial leverage, financial performance, fintech

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Corporate Sustainability and Financial Performance: The Moderating Effect of CEO Characteristics

Cited by 7 publications

References 80 publications

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Influence of Cultural and Environmental Values of CEOs on Greenhouse Gas Emission Intensity

Board Structure and Financial Technology in Banks: Gulf Countries

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