Reporting and Disclosure of Investments in Sustainable Development

Staszkiewicz, Piotr; Werner, Aleksander

doi:10.3390/su13020908

Cited by 10 publications

(7 citation statements)

References 38 publications

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“…This is also supported by critiques on ESG reporting [53], which highlight that the International Integrated Reporting Council's effort on encouraging ESG disclosure failed due to the reason that the additional reporting alongside the main financial statement could create confusion and could have very little impact on the financial reporting of companies. In this regard, some researchers suggest that current practices should consider a mutual recording of both financial and environmental aspects using two charts of accounts and multiple records [54]. Nevertheless, ESG also placed an additional burden on the firms in need to gather information on the impacts of a firm's activities on society and environment [53].…”

Section: Esg Reporting As Predicament For Financial Distressed Firmsmentioning

confidence: 99%

Financially Distressed Firms: Environmental, Social, and Governance Reporting in Indonesia

et al. 2021

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This study examines the relationship between financial distress and environmental, social, and governance (ESG) disclosure. We hypothesize that financially distressed firms are tempted to enhance ESG disclosure as it provides higher performance in terms of financial and market perspectives. ESG disclosure needs substantial resources, which financially distressed firms may not be able to provide. In Indonesian settings, we find that financially distressed firms have lower ESG disclosure quality than non-distressed firms. Our results are robust due to lagged variable, Heckman’s two stages, and coarsened exact matching regression showing consistent results. Furthermore, our results are consistent with three years of rolling windows of financial distress and all sections of ESG reporting, except the general information section. This study extends the scope of prior studies by focusing on firms’ eagerness to provide higher quality ESG disclosure, particularly distressed firms.

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Section: Esg Reporting As Predicament For Financial Distressed Firmsmentioning

confidence: 99%

Financially Distressed Firms: Environmental, Social, and Governance Reporting in Indonesia

et al. 2021

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“…The results obtained, firstly, clarified the specifics of investments in sustainable development noted in the works (Azmat et al 2021;Chen 2021;Staszkiewicz and Werner 2021). Our results also identified unique factors in financing social entrepreneurship for (1) increasing incentives for directing the financial resources into long-term investments, strengthening stability and increasing inclusiveness; (2) promoting the creation of "markets of tomorrow", especially in areas where public-private cooperation is required; (3) encouraging and expanding investment in research, innovation and inventions that can create new "markets of tomorrow"; (4) updating curricula and increasing investment in skills for work and the "markets of tomorrow".…”

Section: Discussionmentioning

confidence: 54%

“…Based on the specifics of investments in sustainable development, which is noted and emphasised in the works (Azmat et al 2021;Chen 2021;Staszkiewicz and Werner 2021), we offer Hypothesis 1: Hypothesis 1 (H1). The financial risks of social entrepreneurship differ from the standard financial risks of commercial entrepreneurship (receipt of credits, protection of minority investors, taxation, and solution to non-solvency).…”

Section: Theoretical Basis Literature Review and Gap Analysismentioning

confidence: 99%

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Popkova

Sergi

2021

Risks

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The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific aspects of financing factors and financial risk related to social entrepreneurship in developing countries (in comparison with the standard financial risk related to commercial entrepreneurship) in order to analyze the influence of the financing factors of social entrepreneurship on sustainable development, as well as to determine the potential for the development of social entrepreneurship through financial risk management. To achieve this goal, this article uses the methodology of econometrics—dataset modelling of financial risk management in social entrepreneurship to achieve sustainable development in emerging economies. On the basis of the results of this study, firstly, it is substantiated that the financial risks entailed by social entrepreneurship differ from the standard financial risk present in commercial entrepreneurship. Specific factors of the financing of sustainable development in emerging economies are determined and, on the basis of this, financial risks specific to social entrepreneurship in emerging economies are identified as follows: (1) reduced stimulus to use financial resources in long-term investments, which disrupts the stability and decreases inclusion; (2) joint public–private investments and decreased investment in R&D; and (3) expanded investment in the skills required for jobs and “markets of tomorrow”. Secondly, a contradictory influence of financing factors on sustainable development is demonstrated. Thirdly, a large potential for the development of social entrepreneurship by means of financial risk management (maximum reduction) was identified. With the minimization of financial risk, social entrepreneurship would demonstrate substantial progress, with an increase of 99.61% (more than 50%) from 45.18 points to 90.18 points. A novel contribution of this paper to the extant literature consists of the specification of the essence and specifics of social entrepreneurship in emerging economies through the identification of financial risks and the provision of recommendations for their management.

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“…Both the existing theoretical and empirical literature suggest that bank lending is a fundamental process that fuels economic growth by creating jobs, fulfilling demands, and thereby enhancing the living standard of people. Moreover, banks create liquidity during this transformation process by holding illiquid assets, financing long-term bank assets (loans) with short term liabilities (bank deposits), and fulfilling the liquidity requirements of an economy (Diamond & Dybvig, 1983;Staszkiewicz & Werner, 2021). This transition at times, may leave banks susceptible to funding liquidity risk when these long-term assets and short-term liabilities misalign.…”

Section: Introductionmentioning

confidence: 99%

Funding liquidity on bank lending growth: The case of India

Shaikh

2023

JEMI

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PURPOSE: By bridging the funding gap between funding surplus units and deficit units, financial institutions like banks play a crucial role in fostering economic development in a nation. Banks provide the crucial task of organizing individual and institutional resources and directing them to those prepared to engage in business ventures or other productive uses. The aim of this paper is to evaluate the relation between funding liquidity and bank lending growth (BLG). An empirical analysis between bank capital and the funding liquidity ratio on bank lending growth (BLG) using the generalized method of moments (GMM) approach for the sustainable business has been not identified before. Therefore, this study tries to fill this gap. METHODOLOGY: The data was collected from 59 commercial banks in India from 2010 to 2022 which comprises of 21 public sector banks, 18 private sector banks, and 20 foreign banks. The GMM approach was what we employed. This strategy is typically utilized in situations in which the distribution of the data is uncertain and there is a concern with over identification. GMM offers a consistent, asymptotically normal, and efficient estimator in comparison to all of the other estimators that merely use the information presented by the moment conditions. FINDINGS: Findings suggests that there is a significantly negative influence of bank capital and funding liquidity on bank lending. This indicates that higher capital can limit the effect of funding liquidity on the growth of the banks’ loans, therefore the findings are consistent with the hypothesis that higher capital can lower the effect of funding liquidity. This study’s model also reveals the significantly favorable impact that funding liquidity has on the expansion of banks’ loan portfolios, which ultimately results in a more sophisticated increase in the growth rate of bank lending. IMPLICATIONS: This can be an importance piece of information for policy makers in taking accurate decisions to induce the BLG in the presence of an interactive association of funding liquidity and the lending growth rate at different capital levels. We found that the banks’ lending growth rate is significantly influenced by its past values with a significant p-value of less than 1%. The findings imply that capital funds and liquidity funds support the BLG rate in India by strengthening and neutralising the risk involved and absorbing the losses generated by stressed assets. ORIGINALITY AND VALUE: This study makes a significant contribution to the creation of a more in-depth understanding of the potential relationship between banks’ funding liquidity, capital funds, and bankers’ lending behavior, in particular with reference to developing market nations like India.

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Reporting and Disclosure of Investments in Sustainable Development

Cited by 10 publications

References 38 publications

Financially Distressed Firms: Environmental, Social, and Governance Reporting in Indonesia

Financially Distressed Firms: Environmental, Social, and Governance Reporting in Indonesia

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Funding liquidity on bank lending growth: The case of India

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