Environmental, Social and Governance (ESG) disclosure, competitive advantage and performance of firms in Malaysia

Mohammad, Wan Masliza Wan; Wasiuzzaman, Shaista

doi:10.1016/j.cesys.2021.100015

Cited by 191 publications

(223 citation statements)

References 54 publications

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“…In addition to the requirement of Bursa Malaysia Sustainability Reporting Guide-2015, there are other reasons for selecting large companies. As large companies are more visible to the public, they would carry out more activities that have a greater impact on society (Mohammad & Wasiuzzaman, 2021;Nguyen et al, 2021).…”

Section: 1population and Samplementioning

confidence: 99%

“…Corporate sustainability practices (CSP) is the latest concept of corporate social responsibility (CSR), or sustainable development (Christofi, Christofi, & Sisaye, 2012;Molla, Hasan, Miraz, Azim, & Hossain, 2021;Provasi & Harasheh, 2021). It refers to the ability of a corporation to contribute to economic, environmental, and social improvement (Commission of the European Communities, 2001;Mohammad & Wasiuzzaman, 2021). It is an ethical concept that safeguards the environment, ensures the proper utilization of resources, and changes the direction of investments .…”

Section: Introductionmentioning

confidence: 99%

“…Regrettably, it is observed that the sustainability activities of Malaysian firms are still low and the firms are not encouraged to enhance their CSP up to the mark (Ajibike, Adeleke, Mohamad, Bamgbade, & Moshood, 2021). Furthermore, it is very common that comparatively the giant corporations in developed countries are more engaged in CSP than firms in developing countries (Mohammad & Wasiuzzaman, 2021). It is in fact that CSP increases the expenses which reduces the profitability of a firm.…”

Section: Introductionmentioning

confidence: 99%

“…They also suggested doing further research in this regard to develop a richer understanding of the impact of sustainability activities on the financial performance of firms. Also, there are not enough studies have been conducted on the relationship between CSP and the financial performance of firms in developing country especially in Malaysia (Mohammad & Wasiuzzaman, 2021;Molla et al, 2021). The stakeholder theory (Freeman, 1984) also supports the notion that when a firm is engaged in corporate sustainability practices, the board can make better decisions to enhance financial performance.…”

Section: Introductionmentioning

confidence: 99%

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Effect of Gender Diversity on the Association between Corporate Sustainability Practices and Financial Performance of Firms

Molla

2021

FER

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Purpose: The objective of this research is to examine the effect of corporate sustainability practices (CSP) on financial performance (FP) as well as the moderating effect of gender diversity (GENDIV) in the board on the relationship between CSP and FP of firms in Malaysia. Methods: The sample of the study is 312 firm-year observations from 2015 to 2017 of 104 firms listed in Bursa Malaysia. The theoretical framework of the study is underpinned by the Stakeholder theory and the Agency theory. To test the hypotheses, with the help of STATA software, the panel corrected standard errors (PCSE) estimator model and the hierarchical moderated multiple regression model have been used. Results: The findings of the study reveal that CSP significantly and positively affects the FP of firms. The empirical results also show that gender diversity in boards significantly moderates the relationship between CSP and FP of Firms in Malaysia. Implications: Based on the empirical findings, the study recommends that the policymakers and regulatory bodies should follow up the mandatory corporate sustainability practices of the firms as well as revise the codes of corporate governance regarding gender diversity of the boards to ensure their long-term sustainability as well as to reduce the risk of financial distress, or bankruptcies in the future.

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Section: 1population and Samplementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Effect of Gender Diversity on the Association between Corporate Sustainability Practices and Financial Performance of Firms

Molla

2021

FER

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“…A variety of authors identify and analyse factors of competing in different sectors Ilinova et al (2021) in fertilizer companies, Knudsen et al (2021) in the High Technologies sector or particular countries, Mohammada and Wasiuzzaman (2021) in Malaysia or Wang and Gao (2021) in China. We have resolved to determine, therefore, whether business objects influence selection of sources of competitive advantage and have proposed H1 as, scope of business objects (sector) is a factor differentiating selection of sources of competitive advantage by enterprises, thereby filling a gap in research.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Sources of Competitive Advantage of Enterprises in Selected Sectors of the Polish Economy

Wolak-Tuzimek¹,

Duda²,

Sieradzka³

2021

ERSJ

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Purpose: Study impact of business activities on selection of sources of enterprises' competitive advantage. The research hypothesis is advanced as H1: scope of business objects (sector) is a factor differentiating selection of sources of competitive advantage by enterprises. The concept and essence of competitiveness are discussed, methods of building competitive advantage by enterprises are detailed. Design/Methodology/Approach: The theoretical section follows a comprehensive review of leading specialist literature. The hypothesis is verified in the empirical section by means of position measures (arithmetic mean, median) and variability measures (standard deviation, coefficient of variability). Kruskal-Wallis test is also used to verify the research hypothesis. Findings: The paper contains results of a survey of 253 large Polish enterprises. Kruskal-Wallis test serves to determine impact of a sector on selection of sources of enterprise competitive advantage. Sector has no effect on choice of such sources as: quality management system, cost reduction, advertising, public relations, enterprise image, highly qualified managerial staff, knowledge and skills of employees, new technologies, or customer trust. Practical Implications: The results can be utilised by enterprises as guidelines for selection of sources of competitive advantage. Originality/Value: The paper contains an original study of a representative group of large enterprises that can be generalised to the whole population assuming a confidence level α=95% and maximum error β=6%.

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Strategic orientation, risk‐taking, corporate life cycle and environmental, social and governance (ESG) practices: Evidence from ASEAN countries

et al. 2023

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Environmental, social, and governance (ESG) considerations have become increasingly important in the business world. Companies are expected to operate responsibly and sustainably, and stakeholders are demanding greater transparency and accountability. Our research aims to examine the influence of determinants on ESG practices in ASEAN countries (Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam), as measured by ESG performance on the Refinitiv Eikon. Although there have been many studies discussing ESG, only a few have discussed this relationship by involving strategic orientation, risk taking and corporate life cycle simultaneously. We use panel regression based on a sample of 2373 observations from 2004 to 2022. The results show that the prospector strategy orientation encourages a greater increase in ESG practices compared to the defender strategy orientation, which means that companies with a prospector orientation are more willing to practice ESG because they have strategic resources. The increasing risk‐taking by companies will reduce ESG practices. The more mature the company's life cycle stage will improve ESG practices. This brings implications that the strategy orientation chosen by the company, risk‐taking, and corporate life cycle are the determining factors for companies implementing ESG practices in ASEAN countries. This research contributes to the literature related to corporate sustainability by considering ESG as one of the measurements of sustainability which is currently the main investment trend being observed in financial markets, especially ASEAN countries which are the best areas to invest.

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Environmental, Social and Governance (ESG) disclosure, competitive advantage and performance of firms in Malaysia

Cited by 191 publications

References 54 publications

Effect of Gender Diversity on the Association between Corporate Sustainability Practices and Financial Performance of Firms

Effect of Gender Diversity on the Association between Corporate Sustainability Practices and Financial Performance of Firms

Sources of Competitive Advantage of Enterprises in Selected Sectors of the Polish Economy

Strategic orientation, risk‐taking, corporate life cycle and environmental, social and governance (ESG) practices: Evidence from ASEAN countries

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