Do sustainability practices influence financial performance? Evidence from the Nordic financial industry

Rahi, Abm Fazle; Akter, Ruzlin; Johansson, Jonny

doi:10.1108/arj-12-2020-0373

Cited by 60 publications

(95 citation statements)

References 133 publications

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“…Policymakers in Saudi Arabia must continue their efforts toward changing the traditional culture of Saudi society, in which women have long been marginalized. For Saudi companies, they must reconsider the extent of their social practices and strike a balance between financial and nonfinancial goals, especially as a large number of recent studies indicate a positive and significant relationship between CSR practices and the financial performance of companies and that the integration of social responsibility practices in company strategy enables the company to achieve a sustainable competitive advantage (Rahi et al , 2022; Pham et al , 2021). For those responsible for accounting education in Saudi Arabia, the results of this study confirm the results of a number of recent studies that indicate the weakness of integrating sustainability issues, including environmental and social practices, into the accounting education curricula in Saudi universities (Ebaid, 2021).…”

Section: Discussionmentioning

confidence: 99%

Corporate governance mechanisms and corporate social responsibility disclosure: evidence from an emerging market

Ebaid

2022

JGR

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Purpose This study aims to examine the relationship between corporate governance mechanisms, namely, board independence, board size and gender diversity, and the extent of corporate social responsibility (CSR) disclosure for companies listed on the Saudi stock exchange. Design/methodology/approach Data has been extracted from the annual reports of a sample of 67 companies listed on the Saudi Stock Exchange during the period 2014–2019. Three panel data techniques have been used to investigate the association between governance variables and the extent of CSR disclosures after statistically controlling the effects of the size, leverage and profitability of the companies. Findings The results of this study indicate that board independence and board size have positive and significant associations with the extent of CSR disclosures. However, the study finds that the percentage of female representation on the board has a positive effect on the extent of CSR disclosure, but that this effect is not statistically significant. Research limitations/implications The results of this study are limited to the context in which the study was conducted, which is the Saudi stock exchange during the period 2014–2019, and then the generalization of the results may be limited to listed companies operating in a similar social and economic context. Also, the data sources in this study were limited to the annual reports of companies only. Practical implications The results of this study provide some indications for policymakers in Saudi Arabia to take what is necessary to promote corporate governance mechanisms and, therefore, enhance CSR practices. Originality/value This study contributes to the literature on CSR by providing empirical evidence on the impact of corporate governance mechanisms on the extent of CSR disclosure from one of the developing countries, which is Saudi Arabia.

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Section: Discussionmentioning

confidence: 99%

Corporate governance mechanisms and corporate social responsibility disclosure: evidence from an emerging market

Ebaid

2022

JGR

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“…Although PBV facilitates the investigation of SMPs on the entire range of performance (i.e. positive, negative or neutral performance) (Carter et al, 2017), most previous studies on practices have simplified the links by examining the marginal contributions of practices on firm profits with regression methods (Rahi et al, 2021). These studies assess the marginal effects of individual SMP, thus neglecting their contribution in combination with other SMPs.…”

Section: Theoretical Implicationsmentioning

confidence: 99%

Substitution and complementarity dynamics in configurations of sustainable management practices

Song

Han

Sroufe

2022

IJOPM

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PurposePrevious research tends to study various sustainable management practices (SMPs) in isolation, leading to inconsistent conclusions about the effect of SMP on firm profit. This research aims to advance the understanding of the linkage between SMP configurations and financial performance by revealing the dynamics of substitutions and complementarities among these SMPs.Design/methodology/approachThe authors conducted an exploratory study based on the theoretical lens of the practice-based view (PBV). An integrated text-mining approach is used in gathering data from 302 corporate reports of cross-sectional firms, followed by a fuzzy-set qualitative comparative analysis method to examine the configurations of SMPs in achieving high and low financial performance.FindingsThe findings show that green innovation practices (GIP) and cleaner production practices work together as complements for small firms in configurations associated with high profits. However, large companies in high-competition industries often adopt a minimalist configuration focusing on product quality and safety management (PQSM). PQSM and GIP are complements in configuration for small firms in high-competition industries, while they work together as substitutes for small firms in low-competition industries.Practical implicationsThis research provides managers with a new way of thinking to support decision-making in sustainable operations management. The complementary and substitutive view of management practice can guide operations managers to design and implement effective practice configurations to achieve synergistic effects.Originality/valueThis is among the first studies to reveal the complex relationship between various configurations of SMPs and firm performance. In addition, this research offers new insights into previously inconsistent findings from a PBV and configuration perspective.

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“…The determining indicator of financial security of the enterprise in most wellknown models is the level of its financial stability, on which attention is focused Dokiienko L. [19] consider them in conjunction. And these two indicatorsfinancial stability and profitability -we propose to take as a basis in this article.…”

Section: Part 1 Identification Of Financial Security Position Of the ...mentioning

confidence: 99%

Financial Security of the Enterprise: Key Indicators of Ensuring and Development

Dokiienko

Hrynyuk²

2022

Transformation of Economy, Finance and Management in Modern Conditions:

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A system of key indicators for assessing the financial security position of enterprises was proposed. On the basis of the existing methodological approaches, a set of models for assessment of financial security level of the enterprise on the basis of factors of financial stability and profitability have been developed, which became the basis for the proposed matrix of identification of the financial security’s position of the enterprise. The generalized matrix of zoning of financial security of the enterprise became a reflection of the result of aggregate interaction of the main internal financial factors of functioning of the enterprise. Consideration of mutual components of the internal and external financial environment for further development of the enterprise was the basis of the matrix of strategic directions of the financial development of the enterprise within the framework of the dominant sphere of «ensuring financial security». Also, the tools of assessment of the main components of the effectiveness of the enterprise are proposed, their interrelations are described and the impact on the financial security of the enterprise is determined.

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Do sustainability practices influence financial performance? Evidence from the Nordic financial industry

Cited by 60 publications

References 133 publications

Corporate governance mechanisms and corporate social responsibility disclosure: evidence from an emerging market

Corporate governance mechanisms and corporate social responsibility disclosure: evidence from an emerging market

Substitution and complementarity dynamics in configurations of sustainable management practices

Financial Security of the Enterprise: Key Indicators of Ensuring and Development

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