The nexus between corporate environment, social, and governance performance and cost of capital: evidence from top global tech leaders

Nazir, Marina; Akbar, Minhas; Akbar, Ahsan; Poulovo, Petra; Hussain, Ammar; Qureshi, Muhammad Azeem

doi:10.1007/s11356-021-17362-0

Cited by 28 publications

(24 citation statements)

References 82 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The main inspection part is measured by the environmental protection investment of the enterprise, and the robustness inspection part is replaced by the sewage charge. Investigate i , t is the main explanatory variable of this article, indicating the field research of institutional investors [ 21 , 22 ]. In equation ( 2 ), X represents the indicators of enterprise environmental information disclosure (Score) and enterprise distribution concentration (Compror).…”

Section: Methodsmentioning

confidence: 99%

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

Sheng

2022

Journal of Environmental and Public Health

View full text Add to dashboard Cite

In order to give full play to the role of field research of legal psychology institutional investors in promoting enterprise environmental governance, this article puts forward the research on how legal Psychology institutional investors affect the corporate governance environment. Taking the listed companies in the A-share heavy pollution industry of Shenzhen Stock Exchange from 2018 to 2021 as a sample, this article tests the impact and action mechanism of legal Psychology institutional investors’ field research on corporate environmental governance. Hypothesis 1: the field research of legal Psychology institutional investors can promote the environmental governance of enterprises. Hypothesis 2: for enterprises with poor environmental information disclosure, the impact of field research of legal Psychology institutional investors on enterprise environmental governance is more obvious. Hypothesis 3: for enterprises with more concentrated distribution, the impact of field research of legal Psychology institutional investors on enterprise environmental governance is more obvious. Leadership power has the three attributes of management, social psychology, and law, and its essence is the socialization of legal psychology. Under the perspective of legal psychology, the psychological mechanism of leadership power is mainly manifested in three aspects: increasing the social distance, activating the approach system, and inducing the control illusion. The cumulative number of field investigations conducted by the enterprise in the current year +1 is adopted, and the logarithm is taken as the measurement index of the field investigation of legal Psychology institutional investors, which is expressed by Investigate. In the robustness test part, the virtual variables are set by whether the enterprise is investigated in the field in that year. The results show that in uncontrolled years and industries, the regression coefficients of legal Psychology institutional investor investigation and enterprise environmental protection capital investment are 0.0703 and 0.2416, respectively, which are significant at the level of 5%. After controlling the year and industry, the regression results show that the field investigation of legal Psychology institutional investors and enterprise environmental capital investment are still positive, significantly at the level of 5% and 1%, respectively. The environmental capital investment of enterprises with poor environmental information disclosure (0.479 and 1.161) is higher than that of enterprises with good environmental information disclosure (0.252 and 0.618), and the mean t-test maintains the significance level of 1%, indicating that the impact of field research on enterprise environmental governance is more obvious in enterprises with poor environmental information disclosure, which preliminarily verifies Hypothesis 2 of this article. Similarly, when the distribution of enterprises is more concentrated, the environmental capital investment of enterprises is 0.536 and 1.286, which is higher than that of enterprises with a more dispersed distribution (0.315 and 0.778) and maintains a significant level of 1%. The results show that obtaining environmental information is helpful for stakeholders to supervise enterprise environmental governance. Therefore, we should formulate and issue policies and regulations that require enterprises to disclose environmental information as soon as possible, improve the standards of environmental information disclosure, establish an enterprise environmental information disclosure platform, and improve the level and quality of environmental information disclosure.

show abstract

Section: Methodsmentioning

confidence: 99%

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

Sheng

2022

Journal of Environmental and Public Health

View full text Add to dashboard Cite

show abstract

“…They found the same as per the debt covenants hypothesis that leverage pursues the managers to opportunistically utilize the REM practices to hide the actual financial image from investors. Another study documented that sustainable reporting diminish the cost of debt (Nazir et al 2022), which may also encourage the managers to artificially make their earnings sustainable for obtaining loans at reasonable cost.…”

Section: Leverage and Earnings Managementmentioning

confidence: 99%

The Interplay of Leverage, Financing Constraints and Real Earnings Management: A Panel Data Approach

Hussain

Akbar

Khan

et al. 2022

Risks

View full text Add to dashboard Cite

Organizations are formed to gain long-term benefits. However, sometimes myopic management for feigned value enhancement led to the early demise of the firm. Further, to the best of our knowledge empirical role of financing constraints has not yet been explored between the relationship of leverage and earnings management practices. Therefore, the present study aims to empirically examine the impact of leverage on Real Earnings Management (REM) practices and how financing constraints influence this association. Employs a panel dataset of 3250 non-financial Chinese listed firms for a time period spanning from 2009 to 2018. Leverage is categorized into short-term, long-term, and total leverage to check the individual effects of each leverage category on REM practices. The data were analyzed through panel data fixed-effects and random-effects techniques as an econometric approach. First, consistent with positive accounting theory, the impact of total leverage on REM is positive. Second, compared to the long-term leverage, short-term leverage has more pronounced effects on managers’ opportunistic behavior towards using REM. Third, the influence of total leverage is higher (lower) on REM practices in financially unconstrained (constrained) firms. Fourth, the influence of short-term leverage on REM practices compared to long-term leverage is also weak in the financially constrained firms. These findings imply that, to avoid the consequences of managerial myopia, investors should abstain to invest in the firms that use higher amount of short-term debt and are financially unconstrained. This study is the first research to examine the impact of different leverage categories on REM practices in an emerging market, i.e., China, where the legal and financial structure is much poor.

show abstract

“…But there is a second possibility that ESG reporting is viewed as a different firm's burden, and therefore, it is a form of inefficiency. Nazir et al [19] investigated the impact of ESG performance of top global technology leading firms on their cost of capital. Panel data fixed effects and random effects and generalized method of moment (GMM) regression estimation techniques have been applied to ascertain this relationship during a period of eight years (2010-2017).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Harymawan et al [18] (i) Investment efficiency (ii) Environmental (iii) Social (iv) Governance Nazir et al [19] (i) Governance (ii) Global technology Akbar et al [20] (i) Financial distress (ii) Corporate restructuring Ryu and won [21] (i) Innovation (ii) Value frim Khoung et al [22] (i) Life cycle (ii) Earning management Yulianto [23] (i) Frim size proxy (ii) Total sales Ahmad et al [24] (i) Life cycle (ii) Investment efficiency Akbar et al [25] (i) Capital management (ii) Profitability (iii) Market performance Yulianto et al [26] (i) Life cycle (ii) Technology information digitalization (TID) Shahzad et al [27] (i) Risk (ii) Emergence (iii) Growth (iv) Decline Ahsan et al [8] (i) Risk (ii) Maturity (iii) Stagnation Complexity nonsystematic risk is higher in the introduction and decline stages and lower in the growth and maturity stages. Also, cash flow fluctuations and information uncertainty differ only in the maturity stage from the stagnation stage, and in this regard, there is no difference between other stages of the life cycle and the stagnation stage.…”

Section: Author Variablesmentioning

confidence: 99%

The Effect of Specific Risk in Various Stages of the Life Cycle of Companies Listed on the Tehran Stock Exchange

et al. 2022

View full text Add to dashboard Cite

This research aims to examine the specific risk of companies and their effectiveness in various stages of the company life cycle on state and nonstate ownership. For this purpose, the specific risk was estimated using Fama and French three-factor models, and the research objective was examined by considering the data panel model during the period 2015 to 2020 in a statistical sample consisting of 136 companies active in the Tehran Stock Exchange. For this purpose, the main contribution of research is evaluation of the effect of specific risk in different stages of the life cycle of companies admitted to the Tehran Stock Exchange. Therefore, the main valuable advantage to helping stock managers is assessing the impact of government ownership and nongovernment ownership on the specific risk of companies at different stages of the life cycle. Also, presenting a model to show the effects of dependent and independent variables in order to evaluate the impact of government and nongovernment ownership. The research results confirmed that the specific risk of the company in the stages of introduction, growth, and decline is higher compared to the stages of maturity and stagnation of the life cycle of companies listed on the Tehran Stock Exchange. Because the coefficients of virtual variables related to the life cycle stages of the company are estimated to be significant. Also, the finding confirmed that government ownership significantly affects the relationship between firm risk and life cycle stages in companies listed on the Tehran Stock Exchange. Because, the coefficient of variable state ownership is negative and significant, indicating a lower specific risk in state-owned companies than in nonstate-owned companies.

show abstract

The nexus between corporate environment, social, and governance performance and cost of capital: evidence from top global tech leaders

Cited by 28 publications

References 82 publications

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

[Retracted] How do Institutional Investors Influence Corporate Governance under Legal Psychology

The Interplay of Leverage, Financing Constraints and Real Earnings Management: A Panel Data Approach

The Effect of Specific Risk in Various Stages of the Life Cycle of Companies Listed on the Tehran Stock Exchange

Contact Info

Product

Resources

About