Nexus between sustainability management and financial performance - study on manufacturing firms from global emerging market

Yusuf Hassan; Sanchita Roychowdhury

doi:10.1504/IJEWE.2019.103387

Nexus between sustainability management and financial performance - study on manufacturing firms from global emerging market

Yusuf Hassan^*, Sanchita Roychowdhury

^*Corresponding author for this work

School of Social Sciences

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

The objective of this study is to identify and analyse the causal relationship between a firm's sustainability management practices and its financial performance in global emerging economies. This study includes Granger causality and regression analysis of panel data of seven years for 119 manufacturing firms on environment, social and governance (ESG) indicators and measures for financial performance, i.e., ROA, ROE, price to book value and debt equity ratio. Through this study, we found that ESG factors hurt the financial performance of firms, but the vice-versa is may not true. Implications and future research have been suggested based on our observations.

Original language	English
Pages (from-to)	206-219
Number of pages	14
Journal	International Journal of Environment, Workplace and Employment
Volume	5
Issue number	3
DOIs	https://doi.org/10.1504/IJEWE.2019.103387
Publication status	Published - 5 Nov 2019

Keywords

Environment
ESG
Financial performance
Global emerging market
Granger causality
Manufacturing industry
Social and governance
Social responsibility
SPM
Sustainability performance management

ASJC Scopus subject areas

Organizational Behavior and Human Resource Management

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title = "Nexus between sustainability management and financial performance - study on manufacturing firms from global emerging market",

abstract = "The objective of this study is to identify and analyse the causal relationship between a firm's sustainability management practices and its financial performance in global emerging economies. This study includes Granger causality and regression analysis of panel data of seven years for 119 manufacturing firms on environment, social and governance (ESG) indicators and measures for financial performance, i.e., ROA, ROE, price to book value and debt equity ratio. Through this study, we found that ESG factors hurt the financial performance of firms, but the vice-versa is may not true. Implications and future research have been suggested based on our observations.",

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AU - Roychowdhury, Sanchita

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N2 - The objective of this study is to identify and analyse the causal relationship between a firm's sustainability management practices and its financial performance in global emerging economies. This study includes Granger causality and regression analysis of panel data of seven years for 119 manufacturing firms on environment, social and governance (ESG) indicators and measures for financial performance, i.e., ROA, ROE, price to book value and debt equity ratio. Through this study, we found that ESG factors hurt the financial performance of firms, but the vice-versa is may not true. Implications and future research have been suggested based on our observations.

AB - The objective of this study is to identify and analyse the causal relationship between a firm's sustainability management practices and its financial performance in global emerging economies. This study includes Granger causality and regression analysis of panel data of seven years for 119 manufacturing firms on environment, social and governance (ESG) indicators and measures for financial performance, i.e., ROA, ROE, price to book value and debt equity ratio. Through this study, we found that ESG factors hurt the financial performance of firms, but the vice-versa is may not true. Implications and future research have been suggested based on our observations.

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KW - ESG

KW - Financial performance

KW - Global emerging market

KW - Granger causality

KW - Manufacturing industry

KW - Social and governance

KW - Social responsibility

KW - SPM

KW - Sustainability performance management

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JO - International Journal of Environment, Workplace and Employment

JF - International Journal of Environment, Workplace and Employment

IS - 3

ER -

Nexus between sustainability management and financial performance - study on manufacturing firms from global emerging market

Abstract

Keywords

ASJC Scopus subject areas

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