Sustainability reporting in smart cities: A multidimensional performance measures

Buallay, Amina; Khoury, Rim El; Hamdan, Allam

doi:10.1016/j.cities.2021.103397

Cited by 38 publications

(29 citation statements)

References 42 publications

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“…Like the ESG scores, Morningstar's rating uses a 0-100 scale, where lower scores are superior. ESG risk is divided by five risk levels: negligible (0-10), low (10)(11)(12)(13)(14)(15)(16)(17)(18)(19)(20), medium (20)(21)(22)(23)(24)(25)(26)(27)(28)(29)(30), high (30)(31)(32)(33)(34)(35)(36)(37)(38)(39)(40), and severe (40-100) [19].…”

Section: Variablesmentioning

confidence: 99%

“…The linkage between ESG scores and firm financial performance has been theoretically and empirically explored with inconclusive or contradictory results. Two conflicting theories seek to explain the effect of sustainability on firms' financial performance: value development (e.g., stakeholder theory, agency theory) and value destruction (trade-off theory) [21][22][23]. The approach to value-creation theory suggests that costs are minimized, competitive advantage is reinforced, reputation and legitimacy is developed, performance is maximized, and corporate risk is minimized with ESG disclosure [21,22,24].…”

Section: Introductionmentioning

confidence: 99%

“…Two conflicting theories seek to explain the effect of sustainability on firms' financial performance: value development (e.g., stakeholder theory, agency theory) and value destruction (trade-off theory) [21][22][23]. The approach to value-creation theory suggests that costs are minimized, competitive advantage is reinforced, reputation and legitimacy is developed, performance is maximized, and corporate risk is minimized with ESG disclosure [21,22,24]. On the other side, the value destruction hypothesis implies that ESG disclosure activity is costly and detrimental for shareholders [21,22].…”

Section: Introductionmentioning

confidence: 99%

“…The approach to value-creation theory suggests that costs are minimized, competitive advantage is reinforced, reputation and legitimacy is developed, performance is maximized, and corporate risk is minimized with ESG disclosure [21,22,24]. On the other side, the value destruction hypothesis implies that ESG disclosure activity is costly and detrimental for shareholders [21,22]. In addition, many studies have shown that net profit margin, asset turnover, dividend payment, financial leverage, non-interest income [12][13][14], intangible assets [25,26], working capital policy [27,28], environmental management [29] and other operating and financial performance indicators are related to SGR.…”

Section: Introductionmentioning

confidence: 99%

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Environmental, Social, Governance Risk and Corporate Sustainable Growth Nexus: Quantile Regression Approach

Teng

Wang

et al. 2021

IJERPH

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Despite a huge body of literature revealing that the effect of environmental, social and governance (ESG) scores on a firms' financial performance and value, it lacks the empirical research on the nexus between corporate sustainable growth and ESG risk in the existing research. The paper aims to examine the nexus between ESG risk and corporate sustainable growth. This study utilizes a quantile regression approach to explore how ESG risk affects corporate sustainable growth (proxied by sustainable growth rate, SGR). The ordinary least squares estimation results confirm that ESG significantly negatively affects corporate sustainable growth. The quantile regression results reveal ESG risk has a significant negative effect on corporate sustainable growth in the upper quantiles of SGR, but not in the lower and median quantiles. The results show that the impact of ESG risk on the corporate sustainable growth is asymmetric and affected by the distribution of SGR. Furthermore, the research results identify that the negative relationship between ESG risk and corporate sustainable growth is particularly apparent for firms in environmentally sensitive industries. This study greatly contributes to existing literature, as with this detailed knowledge, managers can make decisions based on these associations and identify the most lucrative course of action.

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Section: Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Environmental, Social, Governance Risk and Corporate Sustainable Growth Nexus: Quantile Regression Approach

Teng

Wang

et al. 2021

IJERPH

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show abstract

“…On the other hand, Friedman (1970) argues that ESG causes under-allocation of resources due to agency problems, increasing additional costs for enterprises implementing ESG (Kumar et al, 2022). Consequence, the negative ESG-CFP nexus creates an unfavorable situation (Buallay et al, 2021;Jyoti & Khanna, 2021). Few studies, however, find a neutral ESG-CFP relationship (Buallay et al, 2022), suggesting that ESG does not affect CFP because the positive effects offset the negative effects.…”

Section: Introductionmentioning

confidence: 99%

Too little or too much? Exploring the inverted U-shaped nexus between voluntary environmental, social and governance and corporate financial performance

Teng

et al. 2022

Front. Environ. Sci.

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This study aims to examine the nonlinear relationship between environmental, social and governance (ESG) and corporate financial performance (CFP) using Taiwan Stock Exchange (TSE) listed firms with ESG disclosure between 2005 and 2019. The pooled ordinary least square (OLS) regression estimation results indicate the ESG-CFP nexus is a nonlinear (inverted U-shaped pattern). Furthermore, the individual ESG pillars each have a different relationship with CFP. Both the environmental and social pillars have an inverted U-shaped relationship with CFP, whereas there is no significant relationship between the governance pillar and CFP. The concave nonlinear relationship also supports the tenets of the “too-much-of-a-good-thing” effect. This research confirms that TSE listed firms should identify the optimal ESG value (threshold point), where ESG costs and benefits balance, to maintain sustainable development and stakeholder engagement.

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Theconcave–convexeffects of environmental, social and governance onhigh‐techfirm value: Quantile regression approach

Chang

2022

Corp Soc Responsibility Env

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This study aims to investigate the nonlinear relationship between environmental, social and governance (ESG) and firm value (FV). The sample includes 38 Taiwan Stock Exchange listed high-tech firms with ESG disclosure between 2005 and 2020.Quantile regression estimation results indicate there is a nonlinear concave-convex ESG-FV relationship, which is also verified by the U-test. Furthermore, there is a different relationship between the individual ESG pillars and FV. The nexus between the environmental and social pillars and FV are concave-convex, whereas the governance pillar has no significant effect on FV. The model in this research offers a valuable analytical framework for exploring sustainability reporting as a driver of performance in the high-tech industry. Overall, we highlight Taiwan's high-tech firms should ensure that both the costs and benefits of the ESG performance for maintaining sustainable development and stakeholder engagement.

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Sustainability reporting in smart cities: A multidimensional performance measures

Cited by 38 publications

References 42 publications

Environmental, Social, Governance Risk and Corporate Sustainable Growth Nexus: Quantile Regression Approach

Environmental, Social, Governance Risk and Corporate Sustainable Growth Nexus: Quantile Regression Approach

Too little or too much? Exploring the inverted U-shaped nexus between voluntary environmental, social and governance and corporate financial performance

Theconcave–convexeffects of environmental, social and governance onhigh‐techfirm value: Quantile regression approach

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