Journal ArticleDOI
Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack
TLDR
In this article, the authors examined whether a firm's financial performance is associated with superior environmental, social and governance (ESG) scores in emerging markets of multinationals in Latin America.Abstract:
This paper examines whether a firm’s financial performance (FP) is associated with superior environmental, social and governance (ESG) scores in emerging markets of multinationals in Latin America. The study addresses the current research gap on this issue; it develops hypotheses and tests them by applying linear regressions with a data panel drawn from the Thomson Reuters Eikon™ database to analyse data on 104 multinationals from Brazil, Chile, Colombia, Mexico and Peru between 2011 and 2015. The results suggest that the relationship between the ESG score and FP is significantly statistically negative. Furthermore, in examining environmental, social and governance separately to accurately determine each variable’s relationship to multilatinas’ FP, the results reveal a negative relationship. Finally, the empirical analysis provides evidence for a moderating effect of financial slack and geographic international diversification on the relationship between ESG dimensions and firms’ FP. This study furthers understanding of the relationship between ESG dimensions and FP for the Latin American business context.read more
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Posted Content
A natural resource-based view of the firm
TL;DR: In this paper, a natural resource-based view of the firm is proposed, which is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development, and each of these strategies are advanced for each of them regarding key resource requirements and their contributions to sustained competitive advantage.
Posted Content
How do companies respond to environmental, social and governance (ESG) ratings? Evidence from Italy
TL;DR: In this paper, the authors examine how firms react to ESG ratings and the factors influencing their response, and show that firms may react very differently to being rated, with their analysis yielding a fourfold typology of corporate responses, capturing conformity and resistance to ratings across two dimensions of firm behaviour.
Journal ArticleDOI
How Do Companies Respond to Environmental, Social and Governance (ESG) ratings? Evidence from Italy
TL;DR: In this paper, the authors examine how firms react to ESG ratings and the factors influencing their response, and show that firms may react very differently to being rated, with their analysis yielding a fourfold typology of corporate responses, capturing conformity and resistance to ratings across two dimensions of firm behaviour.
Journal ArticleDOI
Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment
Eduardo Duque-Grisales,Javier Aguilera-Caracuel,Jaime Guerrero-Villegas,Encarnación García-Sánchez +3 more
TL;DR: In this paper, the authors explore the relationship between green innovation and financial performance in emerging markets multinationals from Latin America (Multilatinas) and find that implementing effective green innovation is not associated with greater FP.
Journal ArticleDOI
Environmental, social and governance performance and financial risk: Moderating role of ESG controversies and board gender diversity
TL;DR: In this article, the authors examined the effect of environmental, social, and governance performance on oil and gas firms' financial risk and found that the firms that perform reasonably on ESG have lower total risk.
References
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Book
Applied multiple regression/correlation analysis for the behavioral sciences
TL;DR: In this article, the Mathematical Basis for Multiple Regression/Correlation and Identification of the Inverse Matrix Elements is presented. But it does not address the problem of missing data.
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Econometric Analysis of Panel Data
TL;DR: In this article, the authors proposed a two-way error component regression model for estimating the likelihood of a particular item in a set of data points in a single-dimensional graph.
Journal ArticleDOI
Corporate Social and Financial Performance: A Meta-Analysis
TL;DR: This article conducted a meta-analysis of 52 studies and found that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association.
Journal ArticleDOI
The corporate social performance-financial performance link
Sandra Waddock,Samuel B. Graves +1 more
TL;DR: In this article, the authors report the results of a rigorous study of the empirical linkages between financial and social performance, finding that corporate social performance (CSP) is positively associated with prior financial performance, supporting the theory that slack resource availability and CSP are positively related.
Journal ArticleDOI
A Natural-Resource-Based View of the Firm
TL;DR: In this paper, a natural resource-based view of the firm is proposed, which is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development, and each of these strategies are advanced for each of them regarding key resource requirements and their contributions to sustained competitive advantage.