Corporate Characteristics Research Articles

Environmental regulation and green innovation of polluting firms in China.

The main objective of this paper is to study the impact of the Ambient Air Quality Standard (2012) on the green innovation of Chinese firms in polluting industries. The analysis features "leverage effect" of Porter Hypothesis imposed by environmental regulations and exploits exogenous variations caused by the promulgation of the new policy. Based on the exogenous variations, this paper uses the time varying PSM-DID method. The findings of this study suggest that the implementation of the new policy improves firms' green innovation. Increments in R&D investment and environmental protection investment are channels through which the new standard positively affects firms' green innovation. The cross-sectional heterogeneity analysis exhibits that the effect of this environmental regulation is stronger for firms with bigger size and lower financial constraints. The contribution and significance of this study are as follows: our study enriches understanding of the impact of environmental regulation on firms' green innovation by empirically confirming the influencing channels of the impact of environmental regulations on green innovation. In addition, this paper contributes to the firms' green innovation literature by empirically validating the role of corporate characteristics in moderating the effect of environmental regulations.

Does resident leverage volatility affect corporate profitability?: An empirical study from Chinese A‐share listed companies

AbstractThe increase in resident leverage is expected to promote the growth of retail consumption, thereby creating favorable macro conditions for companies to reduce leverage and destock. However, the increase in resident leverage in China has been accompanied by a continuous decline in the growth of retail consumption, which has a negative impact on the external environment of enterprises. The unbalanced panel data of 2218 nonfinancial listed companies in China from 2010 to 2018 were used to investigate the relationship and mechanism between resident leverage and corporate profitability. The empirical results show that the increase in resident leverage has a negative impact on the profitability of Chinese companies. In addition to the direct impact, resident leverage has a transmission mechanism that affects corporate profitability through debt level, degree of financialization, and degree of zombification. In order to avoid the heterogeneity of research results caused by differences in corporate characteristics, the heterogeneity test was conducted by distinguishing the nature of enterprise ownership, innovation input, and financing constraints. The test of the heterogeneity of enterprise ownership shows that residents' increased leverage has a greater restraint on the profitability of state‐owned enterprises than private enterprises. The test of the heterogeneity of enterprise innovation investment shows that residents' increasing leverage reduces the profitability of high‐innovation enterprises more strongly than low‐innovation enterprises. The heterogeneity test of financing constraints shows that residents' increasing leverage has a more obvious effect on reducing the profitability of companies with high financing constraints than with low financing constraints.

Corporate Characteristics and Sustainability Disclosure in Bangladesh: An Analytical Study Based on Global Reporting Initiative Guideline 4

Corporate Characteristics and Sustainability Disclosure in Bangladesh: An Analytical Study Based on Global Reporting Initiative Guideline 4

Effect of Corporate Charcteristics on Triple Bottom Line Reporting of Quoted Commercial Banks in Nigeria

The study investigated effect of ‘corporate characteristics (cc) measured by Firm Size (FS), Firm Age (FA) and Firm Leverage (FLEV) on Triple Bottom Line Reporting measured by Environmental Bottom Line Reporting (EBLR), Social Bottom Line Reporting (SBLR) and Return on Assets (ROA)’. An ex-post facto research design approach was adopted for the study. The population of the study comprises of 13 quoted commercial banks in Nigeria. The study used panel data from the period of eleven (11) years (2006-2015) and 13 quoted commercial banks were chosen as the sample size using purposive sampling technique. The study utilized secondary data obtained from the annual reports of quoted commercial banks listed on the Nigerian Stock Exchange (NSE) for the period 2010-2020. Content analysis was applied in measuring disclosure, descriptive statistics and panel regression Analysis using Eview version 8 was applied in testing hypotheses. The study result revealed that there was positive (t-statistics, 0.380644) but non-significant (p-value, 0.7040) effect of Firm Size on Environmental Bottom Line Reporting (EBLR) of commercial banks. Also there was a negative (t-statistics, -1.239531) but non-significant (p-value, 0.2172) effect of Firm Age (FA) on SBLR quoted commercial banks. Finally there was a positive (t-statistics, 3.131350) but significant (p-value, 0.021) association between Firm Leverage (FLEV) and ROA. This implies that the level of environmental & social performance and reporting does not depend on the size or age of company. Based on the findings, the study recommended among others, that the Central Bank Nigeria and those charged with governance in commercial banks should initiate policies to improve sustainable social and environmental performance practices especially in the area of afforestation, erosion control, mother – child health care and pandemic sensitization and support.

Продуктовые сегменты агропродовольственного рынка: единый подход или точечное государственное регулирование

The state policy of protectionism in the agri-food sector yielded ambiguous results, such as success in agriculture and achievement of food security thresholds on the one hand, and a sharp increase in food prices on the other. Sugar market has satisfied domestic demand and therefore needs either export expansion or production restriction. The article analyses the development dynamics of the sugar beet industry and sugar consumer market in 2000-2021. The study aims to assess the effectiveness of existing state support measures in the sugar market, considering changes in import substitution. It is hypothesised that in case of saturation of the market with domestic products, the state should support consumers rather than producers. Statistical data analysis and simulation modelling were used as the main research methods. Nominal Protection Coefficient (NPC) was chosen to indicate changes in state support. Domestic market volume under constant demand was assessed. Given that the average per capita sugar consumption remains at 39 kg/person, domestic consumption is 5.8 million tonnes. Considering current production volumes (7.6 million tonnes), the equilibrium price of sugar is estimated at 37 roubles/kg. Calculated NPC values show the dominance of market price transfers for sugar producers. Thus, it is necessary to switch to unrelated support measures for strengthening the effect of market mechanisms. The results can be adapted to develop specific agricultural policy instruments. Future research may conduct deeper structural analysis of selected segments of food markets in order to identify regional and corporate characteristics of participant interaction and adjustment of state regulation measures.

The impact of corporate attributes on voluntary HR disclosure practices: a study of Indian corporate sector

PurposeThe objective of the present study is to examine the impact of corporate characteristics on human resource disclosures in Indian corporate sector.Design/methodology/approachThe study investigates the annual reports of 336 Indian listed companies of NSE-500 Index. The data are collected for the latest time period which contains eight years (FY 2012–13 to 2019–2020). The data of independent variables (company characteristics) have collected from annual reports and CMIE ProwessIQ Database of the Indian listed companies. The data of human resource dissclosure index (HRDI) is collected form annual reports using content analysis approach. For analysis purpose, descriptive statistics, Pearson's correlation matrix, Two-way Least Square Dummy Variable (LSDV) regression model have been used.FindingsThe outcomes show that net sales, market capitalisation, ROTA, return on equity, quick ratio, PAR have significant positive and age, profit after tax, current ratio have significant negative effect on HRDI. On the contrary, debt-equity ratio, earnings per share, type of auditor, listing status have insignificant positive and net fixed assets, promoter's holding have insignificant negative effect on HR disclosures of the selected Indian listed companies.Originality/valueThe HRDI constructed in the present study helps the Institute of Chartered Accountants of India (ICAI) and other regulatory bodies to make some standards regarding voluntary HR disclosure practices in Indian corporate sector.

Perceptions of corporate communication on debated social issues

AbstractCorporations are increasingly engaging in corporate social advocacy (CSA) by communicating on social issues that are controversial and contemporary and not necessarily linked to the corporations' business activities. The purpose of this study is to understand the desirability of CSA: Should corporations be communicating on these debated social issues, and to what extent? Using the online sampling platform Qualtrics, participants (N = 699, located in the United States and 18–35 years old) responded to a survey asking them how they perceived corporate communication on debated social issues. Findings indicate that participants view corporate communication on debated social issues as something that corporations should be engaging in, that this communication is helpful in solving these debated social issues, and that corporations should be the leaders in changing how society thinks about these debated social issues. At the same time, individuals do not trust the moral compass of corporations. Findings also show that certain corporate sectors (e.g., Health Care) should communicate more than other sectors (e.g., Chemicals), certain corporate characteristics (e.g., Reputation) matter more than other corporate characteristics (e.g., Size), and certain topics (e.g., Race Relations) should be discussed more than other topics (e.g., Confederate Flag Use). The implications, limitations, and directions for future research are also discussed.

Determinant Upgrading Agribusiness MSMEs in the COVID-19 Pandemic

Enterprise upgrading strategy is related to investment decisions by MSMEs as investors, closely related to the sustainable development of business. This research aims to identify determinants upgrading, the risks faced and the performance of Agribusiness MSMEs in Palu, and also the influence of determinants upgrading on the performance of Agribusiness MSMEs in Palu during the COVID-19 pandemic. The response of the research on the characteristics of entrepreneurs earned an average of 4.04. It means that the characteristics of entrepreneurs include the “GOOD” category. Other while the response for company characteristics earned an average of 4.41, which gives the meaning of employer characteristics including the “VERY GOOD” category. The response for business and social networks, gained an average of 4.43, entering the category of “VERY GOOD” and last the response to risk earned an average of 3.04 including the “MEDIUM” category. The constant value (α) has a value of -5,633 which means that if the characteristics of entrepreneurs (X1), company characteristics (X2), business and social networks (X3), and business environment (X4) are equal to zero (0), then agribusiness MSMEs will be decreased. The results of the analysis of business characteristic variables (X1), corporate characteristics (X2), business and social activities (X3), and business environment (X4) partially have a significant effect on the performance of Agribusiness MSMEs.

특성화고와 마이스터고 선취업 후진학 관련 연구 동향 분석

This study seeks to explore research trends related to the Work First-then to College System for Specialized Vocational High School and Meister High School graduates through analysis of academic papers published in Korea. For this study, 57 papers related to Work First-then to College System learning at Specialized Vocational High School and Meister High School among papers published in domestic journals including research for subjects, methods, and variables were analyzed.
 As a result of the analysis, first, research in the field of the Work First-then to College System at Specialized Vocational High School and Meister High School has been steadily published since 2017. Second, it was found that the Work First-then to College System were being conducted in academic journals related to lifelong ability and vocational education. Third, the research subjects were mainly conducted on learners, and among them, the most studies were conducted on the Work First-then to College System students. Fourth, as a result of analyzing the research topic, the research related to the Work First-then to College System was found to be the most frequent. Fifth, looking at the results of the complementary analysis according to the research method, quantitative research was found to be far more frequent than qualitative research in Specialized Vocational High School and Meister High School. Sixth, as a result of analysis of related variables, social support, individual characteristics, and corporate characteristics were the most frequent. Finally, based on the results derived from this study, research directions related to the Work First-then to College System at Specialized Vocational High School and Meister High School were presented in the future.

Greenhouse Gas Emission Accounting Disclosure, Corporate Characteristics and Governance: An Empirical Investigation on Indonesian Firms

Currently the world is facing global warming, one of the causes of which is greenhouse gas (GHG) emissions. For these reasons, the disclosure of GHG emission information is one of the interesting research areas. However, previous research generally focused on developed countries with inconsistent findings. In this sense, this study aims to contribute to GHG disclosure by analyzing the characteristics of firms as determinants of GHG emission disclosure in a developing country, Indonesia. This study also analyzed the role of corporate governance consisting of the structure of the board of commissioners and the effectiveness of the audit committee in moderating the effect of corporate characteristics on GHG emission disclosure. The sample consisted of 69 firms-years companies listed on the Indonesia Stock Exchange (IDX). The results of testing with Partial Least Squares-Structural Equation Modeling (PLS-SEM) showed that the structure of the board of commissioners; consisting of indicators of independence, women representation, and the number of members of the board of commissioners; strengthened the leverage effect on GHG emission disclosure. The results of the moderation test also showed that the effectiveness of the audit committee can encourage firms with high leverage and poor performance to reveal more GHG emissions.

Determinants of Corporate Tax Non-Compliance: Evidence from the Special Voluntary Disclosure Programme (SVDP)

This paper aims to provide empirical evidence on the determinants of corporate tax non-compliance in Malaysia based on secondary data collected during the Special Voluntary Disclosure Programme (SVDP) in 2018 and 2019. A total of 4,192 cases have been extracted from the integrated Case Management System (CMS) and Sistem Taksir Sendiri Syarikat (STSC) systems of the Inland Revenue Board Malaysia (IRBM) and analysed. The tax gap has been used as a proxy for tax non-compliance. The independent variables were corporate characteristics and strategies undertaken by companies for tax non-compliance. The research findings reveal that there is a significant positive relationship between firm size, nationality, real estate, understatement of sales, overstatement of purchases, and other strategies and corporate tax non-compliance. Construction and unallowable expenses have a significant negative relationship with corporate tax non-compliance. This study is the first study that investigates factors that could influence the corporate tax non-compliance based on SVDP data. This dataset is unique as it was extracted during the SVDP programme. The findings support on previous findings and provide further essential information to policymakers and tax authorities in designing tax audit guidelines, planning for tax amnesty initiative in future, providing training for their manpower, and formulating effective enforcement strategies.

Which shareholders are interested in the esG-indicators of the company?

Today Russian companies have a low level of compliance with the principles of sustainable economy, which can be largely determined by a weak interest of some corporate stakeholders to ESG (environmental, social and governance) indicators. It determines therelevanceof studying the individual groups of stakeholders and determine the measure of their interest in ESG-strategy.Thepurposeof this work is to determine which shareholders are most interested in ESG indicators of companies whose securities are traded on the Russian stock market. The research is based on the data from Yahoo Finance and the website of the Sustainalytics, Inc. company as of the end of 2021.Cluster, variance, regression and correlationanalyseswere carried out andmethodsof descriptive statistics were used.Resultsof this work have revealed the presence of the features of ownership structure of Russian companies in comparison with companies of developed countries. The lack of insiders’ interest in corporate ESG characteristics has been confirmed. At the same time, the increase in the share of institutional shareholders leads to decrease in the assessed risk of ESG but its rate is less than the change in the shares of institutional owners. The different importance of individual components of the ESG assessment for institutional shareholders has been noted.Thenoveltyof this research is the study of Russian investors and issuers that have not been systematically studied before as well as the ascertainment of complex influence of insiders/outsiders and institutional/private investors. The scientific significance is determined by the development of a new approach to study the influence of the degree of investor responsibility on corporate characteristics. The practical significance of the results lies in obtaining the possibility of developing targeted incentive tools for company shareholders to increase their interest in corporate ESG-indicators and to increase the sustainability of the company and territories. This research will be of interest to investors, company managers, authorities, non-profit organizations and specialists in the field of ESG investment.

Threats to information security of state corporations of the Russian Federation

Objectives. Structuring of publicly available information to identify the distinctive features inherent in state corporations of the Russian Federation and to describe the threats arising as a result of their continuous operation.Method. The following methods of scientific cognition are used: systematization, description, analysis, deduction. The characteristics of state corporations are formed on the basis of data obtained both from the regulatory framework and by means of analysis of modern research in the field. In the future, the systematization of knowledge about the threats of state corporations is carried out, the most common classifications are considered, the increasing activity of intruders regarding critical information infrastructure objects is noted, and possible consequences for the state corporation after a successful computer attack on them are noted.Result. In this paper, a study was conducted on a little–covered area in the scientific literature - the protection of Russian state corporations. A comprehensive analysis made it possible to characterize the object of research in detail, thereby specifying the significant aspects of its functioning. Next, the most significant threats of Russian state corporations were shown, the importance of ensuring information security was noted and 15 factor influences of a successful cyberattack were shown.Conclusions. The conducted research is of an overview nature. The materials presented in the paper can serve as a basis for further research in the direction, as well as the formation of principles of protection against the mentioned threats.

DIGITAL TRANSFORMATION OF CORPORATE GOVERNANCE

Modern trends in the economy's development are characterized by a significant influence of digital information technologies. Research of the digital economy as a separate industry, the determination of mutual influence with corporations, which are active participants and engines of the development of the digital economy, is becoming increasingly important. The spread of the concept of «digitalization» in society causes some confusion due to insufficient understanding of the essence of this concept and its difference with digital transformation, as well as their role in the digital economy. Digital transformation of corporate governance has its own specific features and characteristics associated with a large number of stakeholders and national characteristics of corporate governance.The article analyzes the functions of corporate governance at the enterprise. We determine the mechanism and the persons involved in the corporate governance process, focus on the peculiarities of corporate governance in the context of digital transformation of business, and outline the advantages and disadvantages of corporate governance digitalization. The stages for the implementation of digital technologies into the company’s corporate governance system are highlighted. The paper examines the features of corporate audit, assessment of systems, and the effectiveness of their interaction. The dilemma of using digital corporate governance complexes is considered: to buy a ready-to-use one or create own? Legal regulation of the functioning of electronic systems of corporate governance in the world’s leading companies is especially emphasized. The authors consider in detail the protection of corporate governance in the digital age and conclude about the possibility of corporate blackmail using digital technologies.

THE INFLUENCE OF RISK MANAGEMENT THEORIES ON THE USE OF DERIVATIVES IN THE ELECTRIC POWER INDUSTRY

The work explores crucial decisions on the use of the specific types of derivatives in the electricity price risk management by the member companies of the European Federation of Energy Traders (EFET). The survey has been motivated by volatile fuel prices on international markets and significant losses incurred due to the exposure of companies to such volatility. These trends are the reason why increasing attention is devoted to risk management in the energy sector. The work tests the validity of the assumptions relating to the justification of the risk management function and its impact on corporate value increase. It has been investigated if these theories, as well as the specific corporate characteristics, such as indebtedness, size, liquidity and investment value, influence the use of forwards, futures, options or swaps as tools designed to offset the risk of energy price changes. The findings of univariant and multivariant analyses have shown that the companies using forwards differ from the companies not using them due to their greater indebtedness and higher value of new investments. It can thus be concluded that the companies which are more engaged in capital investment and in this use higher amounts of bonded capital tend to use forwards to a greater extent. On the other hand, it is interesting to note the fact that the size of a company does not play a major role in the choice of this tool, which confirms that forwards are a risk protection tool in the broadest use among big and small companies alike. Likewise, it is indicative that the size of a company has proved to be an influential factor in the choice of futures, swaps and options as tools created to offset the risks of energy price changes.

Multiple paths to enhancing the resilience of project-based organizations from the perspective of CSR configuration: evidence from the Chinese construction industry

PurposeThe role of corporate social responsibility (CSR) fulfillment is critical when building resilience of project-based organizations (PBOs). However, fulfilling CSR to build a highly resilient PBO remains a black box problem. This study explores the different CSR combinations that enhance PBO resilience.Design/methodology/approachThis study defines CSR in terms of shareholder, employee, and social CSR, and analyzes corporate characteristics in terms of corporate scale and nature. Data are collected from Hexun.com and the China Stock Market and Accounting Research Database (CSMAR). The qualitative comparative analysis (QCA) method is used to analyze 48 listed construction and engineering companies from China to explore the CSR configurations for PBOs in enhancing organizational resilience.FindingsA large firm size is a necessary condition for high organizational resilience. We find six paths to build high and non-high resilience in PBOs, and the driving mechanisms of high and non-high resilience exhibit an asymmetric relationship.Research limitations/implicationsThis study cracks the black box of CSR fulfillment and PBO resilience. It reveals the CSR configurations that enhance or inhibit the resilience of PBOs. It also provides scientific basis for PBOs in their fulfillment of CSR in response to crises, and the enhancement of organizational resilience. Future research can be expanded to other industries, as the study sample is only limited to civil engineering construction companies. Since this study uses cross-sectional data, time series can be introduced in the future to further explore the relationship between CSR and organizational resilience.Practical implicationsThis study provides targeted suggestions that can help decision-makers of construction companies to determine how they can fulfill CSR to enhance organizational resilience. At the same time, it can provide intellectual support for PBOs to cope with systemic crises and promote the fulfillment of CSR.Originality/valueIn terms of theoretical value, on the one hand, this study verifies the relationship between CSR fulfillment and PBO resilience, revealing its mechanism of action and multiple paths; on the other hand, it provides a new way of thinking for management research methods and enriches the theoretical study of organizational resilience.

Debt, liquidity, profitability and investment behavior at the corporate level

Subject. This article provides new evidence on how corporate characteristics, like leverage, liquidity, and profitability, affect the investment decisions of non-financial companies. Methods. For the study, we used a statistical data analysis, time series analysis, and an econometric analysis of panel data with fixed and random effects. Results. The article finds that companies from different non-financial industries react differently to changes in corporate variables. This is also true for companies with different sizes and capital structures. The article also confirms that investment activity during and after the debt financial crisis is different, and the materiality of variables for investment decisions changes. Relevance. The research results can be valuable for the scientific community in finding answers in the field of corporate investment, as well as for companies in making investment decisions and for the external financial industry in assessing the financial needs of companies in emerging investment opportunities.

Impact of Corporate Attributes on Sustainability (ESG) Reporting: Evidence from Listed Banks in India

The present study aims to examine the Sustainability (ESG) reporting practices and the impact of some corporate characteristics (age, size, profitability, leverage, and international presence) on the extent of sustainability disclosure of listed banks in India. The sample consisted of all ten banks listed on S&P BSE Bankex representing a large market share of the Indian banking sector. The Sustainability/CSR/Business responsibility reports of the sample companies for the F.Y 2019-20 were examined through the content analysis method using a self-developed Sustainability Reporting Disclosure Index (SRDI) based on the review of literature and standards on sustainability disclosure. The multiple regression technique is used to identify significant corporate attributes affecting Sustainability Reporting (SR). The findings indicate that dimensions like environment, human rights and labour practices are the least reported by selected banks. The regression results show that there is a positive and significant impact of size and leverage on the level of sustainability disclosure whereas age, profitability, and international presence are found to be insignificant. Corporate attributes like size, leverage and international presence are found to be positively and significantly associated with sustainability reporting among the selected banks. However, age and profitability are found to have a negative relationship. The empirical studies on the extent of ESG disclosure and its relationship with firm characteristics especially in the banking sector of developing countries like India are scarce, so this study is an attempt to fill this gap.

Corporate Characteristics and Sustainability Reporting: From the Lens of the Legitimacy Theory

This study intended to achieve two main objectives, which were to determine the level of sustainability reporting disclosure and to examine the relationship between corporate characteristics and sustainability reporting disclosure. This study used the latest Sustainability Framework introduced by Bursa Malaysia in 2015 as the basis for evaluating and measuring the level of sustainability reporting disclosure. 80 of the top 100 companies by market capitalization in the Malaysian Stock Market were taken as the sample. The published sustainability reports (within the annual reports or stand-alone sustainability reports) from 2017 to 2018 were reviewed and analyzed using the content analysis approach to test the objectives of this study. Drawing on the cy theory perspectives, corporate characteristics, such as firm size, industry type, and assurance statement practices, were chosen as the independent variables. Thefindings showed that firm size, industry type, and assurance statement practices had a significant positive relationship with the level of sustainability reporting disclosure. These findings are consistent with the legitimacy theory, which suggests that large companies in high risks industries with assurance statement practices tend to disclose higher sustainability information to legitimize their business operations and activities and maintain their image and reputation. Keywords: sustainability, corporate characteristic, sustainability reporting, legitimacy theory

지속가능경영과 다양성: 제도주의이론 관점에서 본 이사회 내 여성 임원 비율

This paper examines the effects of corporate behaviors related to sustainable management which are presumably intended to attain institutional legitimacy on the diversity of board of directors in terms of the proportion of female executives in board composition. While previous studies focused mainly on roles of female board members in the advancement of corporate social responsibility or accounting transparency, we pay attention to the institutional factors that may affect female executives’ participation in the board of directors. The results of our empirical analysis of leading Korean corporations in terms of market capitalization from 2014 to 2018 show that corporate characteristics and behaviors related to sustainability and institutional dynamics, such as publishing sustainability report, sensitivity of environmental issues, and visibility within institutional fields, have positive effects on the participation of female executives in the board of directors, as predicted in our hypotheses.