Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

Chang, Hai-Yen; Liang, Lien‐Wen; Liu, Yu-Luan

doi:10.3390/su132011139

Cited by 25 publications

(15 citation statements)

References 47 publications

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“…Our findings may have partial mutual support with those of other scholars. For example, Chang et al (2021) find that social activities contribute to a firm's cost efficiency, aligning with our findings that social factors contribute to firm efficiency. Their study also confirms the contribution of governance, but the findings show that the influence of governance factors is insignificant.…”

Section: Discussionsupporting

confidence: 89%

How does stakeholder engagement through environmental, social, and governance affect eco‐efficiency and profitability efficiency? Zooming into Apple Inc.'s counterparts

Kweh

Ting

et al. 2022

Bus Strat Env

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As global ecological degradation intensifies, a trade‐off has arisen between environmental protection and production efficiency to achieve sustainable development for the environment, society, and the company itself. However, the potential reverse causality relationship between environmental, social, and governance (ESG) and corporate efficiency may lead to confusion. This study estimates the eco‐efficiency of Apple Incorporated's value‐chain counterparts in the first stage and creates values and profitability in the second stage of efficiency evaluation. Results obtained from the (i) directional distance function in the two‐stage data envelopment analysis (DEA), (ii) additive efficiency decomposition two‐stage network DEA model, and (iii) network slacks‐based measure model are consistent. That is, Apple counterparts manage more efficient eco‐efficiency than profitability efficiency, implying that eco‐efficiency is their competitive advantage. We thus also run a regression analysis to examine how the ESG ratings of Apple counterparts explain their eco‐efficiency and profitability efficiency. Although the overall ESG rating positively explains the efficiencies, we found that the individual governance rating shows no statistically significant effect. The regression results provide insight for practitioners on the importance of investing in the three aspects of a firm's collective conscientiousness for societal and environmental governance. This paper integrates companies' eco‐efficiency and profitability efficiency to resolve the conflict between environmental issues and production efficiency. It also analyzes in depth the effects of ESG and its three individual factors on eco‐, profitability, and average efficiencies. The diversity of research methods also provides new ideas for future research related to firm efficiency.

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Section: Discussionsupporting

confidence: 89%

How does stakeholder engagement through environmental, social, and governance affect eco‐efficiency and profitability efficiency? Zooming into Apple Inc.'s counterparts

Kweh

Ting

et al. 2022

Bus Strat Env

View full text Add to dashboard Cite

show abstract

“…When it comes to promoting robust institutions and governance structures, Nigeria and the U.S. should prioritize establishing effective mechanisms for trade policy and negotiation and enhancing the efficiency and transparency of customs procedures. These institutions and structures will play a crucial role in shaping and facilitating international trade activities (Chang et al, 2021). One avenue for achieving these objectives is through the implementation of bilateral and multilateral trade agreements (Oulu, 2016).…”

Section: Embracing Regional Trading Blocks: a Focus On Ecowas For Nig...mentioning

confidence: 99%

Navigating Trade Protectionism: Its Implications on Global Procurement Activities and the Nigeria and U.S. Economy

Okogwu,

Egbokhaebho,

Raji

et al. 2023

Agr. Manag. Dvp. Ntn

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This paper examines the implications of trade protectionism on Nigeria’s economy, with a particular focus on the sectors that heavily rely on exporting oil and gas products to the United States (U.S). Conversely, the U.S. occasionally resorts to restrictive measures to defend domestic industries against competitive Nigerian imports, primarily to conserve domestic employment and promote indigenous innovation The reliance on oil exports also poses challenges for Nigeria’s diversification efforts and its ability to develop other sectors of the economy. In recent years, there has been a growing trend of protectionist measures implemented by countries around the world, which has the potential to disrupt global supply chains and affect international trade. As a major oil exporter, Nigeria is vulnerable to global oil price changes, and any increase in trade barriers, such as tariffs or quotas, could have significant implications for the country’s overall economic growth. Historically, nations have adopted protectionist strategies to shield domestic industries, ensure economic stability, and protect employment. However, the rise in such measures in recent years has disrupted global supply chains, inflating procurement costs and imposing challenges to businesses that rely heavily on international sourcing. In navigating this convoluted trade milieu, the paper proposes a set of adaptive strategies. Emphasis is placed on the endorsement of regional trading blocs, advocating the benefits of memberships like ECOWAS for Nigeria and NAFTA/USMCA for the U.S. Such affiliations can serve as buffers against global protectionist winds. Furthermore, harnessing technology in procurement operations is underscored as a critical tool for businesses, aiding in the mitigation of potential disruptions and costs instigated by protectionism. In conclusion, while trade protectionism addresses certain immediate national concerns, its cascading effects on global procurement and specific bilateral relations mandate an informed, strategic response to ensure sustained economic growth and stability.

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“…Moreover, ESG performance has become an essential indicator for evaluating the nonfinancial performance of a firm and its sustainability [1]. However, ESG practices need to input specific costs, so there is a conflict between improving ESG performance and maximizing firms' profits [2]. Additionally, improving ESG performance is a process that requires long-term investment, which leads to a need for more internal motivation for firms to engage in ESG activities and improve their ESG performance.…”

Section: Introductionmentioning

confidence: 99%

Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III

Ling

Zhang

2023

Sustainability

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With the growing importance of sustainable development, ESG is receiving attention from governments, firms, and investors. This study uses the reform of China’s tax inspection system—Golden Tax Project III—as a quasi-natural experiment to examine the impact of the enhanced tax administration on firms’ ESG performance with a sample of Chinese A-share listed companies from 2008 to 2020. The findings, which were identified via a time-varying difference-in-differences (time-varying DID) approach, indicate that Golden Tax Project III significantly reduces firms’ ESG performance and has the most significant impact on the environmental dimension and the minor impact on the social dimension. The negative impact of Golden Tax Project III on ESG performance is more substantial among non-state firms and firms in regions with higher levels of marketization than other firms. The mechanism test shows that Golden Tax Project III negatively affects ESG performance by increasing the tax burden on firms. The moderating effect test shows that tax incentives can effectively mitigate the dampening effect of strengthened tax administration on ESG performance. This study enriches the literature on the factors influencing firms’ ESG performance to a certain extent; it helps the government use taxation policies to inspire firms to improve ESG performance, contributing to sustainable development.

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Using Environmental, Social, Governance (ESG) and Financial Indicators to Measure Bank Cost Efficiency in Asia

Cited by 25 publications

References 47 publications

How does stakeholder engagement through environmental, social, and governance affect eco‐efficiency and profitability efficiency? Zooming into Apple Inc.'s counterparts

How does stakeholder engagement through environmental, social, and governance affect eco‐efficiency and profitability efficiency? Zooming into Apple Inc.'s counterparts

Navigating Trade Protectionism: Its Implications on Global Procurement Activities and the Nigeria and U.S. Economy

Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III

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