Influence of ESGC Indicators on Financial Performance of Listed Travel and Leisure Companies

Rodríguez‐Fernández, Mercedes; Sánchez‐Teba, Eva M.; López-Toro, Alberto Antonio; Borrego-Domínguez, Susana

doi:10.3390/su11195529

Cited by 21 publications

(14 citation statements)

References 80 publications

(92 reference statements)

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“…In general terms, there is a lack of consensus and a disparity in the literature reviewed. The results obtained in our study for multinationals in the pharmaceutical industry have been confirmed by other researchers in various sectors [ 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 43 , 44 , 45 , 46 ]. Furthermore, El Ghoul et al [ 25 ] found a significant positive influence on financial performance.…”

Section: Discussionsupporting

confidence: 89%

“…Few studies focus on showing this relationship through joint ESG and financial performance indicators of companies [ 19 , 20 , 21 , 22 , 23 , 24 , 25 ]. Only one jointly incorporates the so-called “ESG controversies” indicator (hereinafter, we refer to this as “controversies” for easy reading) [ 26 ], and no study focuses on the pharmaceutical industry sector. The reason why we add the controversies to our analysis is due to their impact on business performance.…”

Section: Introductionmentioning

confidence: 99%

“…Thus, Carroll and Shabana [ 42 ] refer to the financial performance as a reason for why companies to apply CSR strategies and policies. Papers in this area report mostly positive relationships [ 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 43 , 44 , 45 , 46 ]. The study of Margolis et al [ 47 ] reports, in general terms, a weak positive effect between social and financial performance, finding that the association between charitable organizations and environmental performance is stronger.…”

Section: Introductionmentioning

confidence: 99%

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Influence of ESGC Indicators on Financial Performance of Listed Pharmaceutical Companies

López-Toro

Sánchez‐Teba

Benítez-Márquez

et al. 2021

IJERPH

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The pharmaceutical industry, concerned about the impact of its activity, has integrated responsible principles and practices with a view to improving its sustainable and financial performance. This study analyzes the relationship between environmental, social, governance, and controversy indicators and financial performance, measured through return on equity (ROA), return on assets (ROE), and Tobin’s Q, which are applied to the listed companies in the Nasdaq US Smart Pharmaceuticals Index. This index is composed of 30 international companies with a presence at the global level. All the data have been extracted from the Thomson Reuters database. The analysis was performed using structural equation modeling implemented with partial least squares. The results confirm the positive relationship between the construct composed of environmental, social, and governance (ESG) indicators and the aforementioned financial ratios. Additionally, a positive relationship of the controversy indicator with Tobin’s Q is supported. This suggests that the pharmaceutical multinationals focus their investments in sustainability on ESG and pay attention to controversies to boost the visibility of the company and thus increase its value. These conclusions confirm that investing in ESG is a profitable strategy. It is also relevant for managers as it increases the profits and the market value of multinational pharmaceutical companies.

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Section: Discussionsupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Influence of ESGC Indicators on Financial Performance of Listed Pharmaceutical Companies

López-Toro

Sánchez‐Teba

Benítez-Márquez

et al. 2021

IJERPH

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“…In turn, it seeks efficiency by saving on resources and treating waste, while offering adequate socio‐environmental performance, all of which leads to an increase in its financial performance. (Busch & Friede, 2018; Rodríguez‐Fernández, Sánchez‐Teba, López‐Toro, & Borrego‐Domínguez, 2019).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…financial performance (Busch & Friede, 2018;Rodríguez-Fernández, Sánchez-Teba, López-Toro, & Borrego-Domínguez, 2019…”

mentioning

confidence: 99%

Sustainable social responsibility through stakeholders engagement

Rodríguez‐Fernández

Gaspar‐González

Sánchez‐Teba

2020

Corp Soc Responsibility Env

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In this paper, the convergence in research of the terms Corporate Governance, Financial Performance and Social Responsibility has been studied. To this end, we have reviewed the literature published between 1998 and 2017 and analyzed a total of 350 articles dealing with these issues, either individually or in combination. Thus, a bibliometric and co-citation analysis has been carried out. This research has demonstrated the importance of the Stakeholder theory to reach the organization's commitment to achieving good financial results, which is considered the key to maintaining social responsibility policies over time. The emerging trends detected focus on board diversity as well as corporate reputation along with the company's financial performance. Also new topics that are raising interest among researchers are women, China, information disclosure or gender.

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The effect of sustainable business practices on profitability. Accounting for strategic disclosure

Cerciello

Busato

Taddeo

2022

Corp Soc Responsibility Env

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This work tackles from an empirical perspective the widely debated relationship between sustainability in business practices and profitability, focusing on a sample of listed European firms. To measure the extent of sustainable practices at the firm level, the Comprehensive Environmental, Social, and Governance (ESG) score is proposed. The indicator, computed using the Mazziotta-Pareto method, combines qualitative ratings on adherence to ESG standards with quantitative observations on the extent of data disclosure. Firms failing to pursue full disclosure are penalized. Focusing on the constituents of the Euro Stoxx 300 index, a dynamic panel model is implemented, where profitability is explained by the indicator. The results show that sustainability in business practices reduces profitability. These findings are in line with a strand of literature that highlights the role of strategic disclosure of ESG information on part of firms. Strategic disclosure occurs as a combination of greenwashing and social washing, with firms overstating the extent of their positive behaviors. The integration of sustainable practices within successful business models thus remains a relevant societal problem. The current EU policy framework is discussed in line with our findings.

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Influence of ESGC Indicators on Financial Performance of Listed Travel and Leisure Companies

Cited by 21 publications

References 80 publications

Influence of ESGC Indicators on Financial Performance of Listed Pharmaceutical Companies

Influence of ESGC Indicators on Financial Performance of Listed Pharmaceutical Companies

Sustainable social responsibility through stakeholders engagement

The effect of sustainable business practices on profitability. Accounting for strategic disclosure

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