The study examined the relationship between tax incentives and financial performance of listed consumer goods manufacturing companies in Nigeria. The study used data collected from published annual reports and accounts of the sampled companies, and tax related submission from the investment promotion commission and Federal Inland Revenue Services. The study covered only seven companies out of twenty-one (21) listed consumer goods companies in Nigeria which were published with available data for the period of ten (10) years (2014 – 2023). The study used Pearson correlation and multiple regression to establish the influence of tax incentive on financial performance of the sampled firms. The study found that capital allowance and loss relief had a positive and significant influence on the financial performance of firms while investment allowance had a positive but insignificant influence on the financial performance of the sampled companies. The study recommends that companies should take more advantage of tax incentives available to them, especially the incentives related to investments that will help in strengthening the productivity of the firms; while tax authorities should consider means of introducing more incentives for investors to critical sectors like consumer goods that have a direct relationship with agricultural output and country export. Tax authorities should also provide an easy enlightenment mechanism on the importance and advantages of tax incentives, especially the rural investment allowance that is geared towards increase in the provision of social amenities to rural areas among others.

This study investigates whether national education reform can enhance firm performance by shaping the human capital of corporate leaders. Exploiting Vietnam’s 1986 Đổi Mới reform as a quasi-natural experiment, we implement a sharp regression discontinuity design (RDD) using CEO birth year as the assignment variable. Our findings show that firms led by CEOs exposed to post-reform education achieve significantly higher financial performance, with a 1.44% increase in return on assets (ROA) and a 3.63% increase in return on equity (ROE) relative to sample averages. These effects are particularly pronounced among female CEOs, those with postgraduate degrees, and CEOs with equity ownership, indicating that reformera education interacts with both agency incentives and demographic traits. By anchoring CEO characteristics in institutional origins, this study extends the upper echelons and human capital theories, and provides novel causal evidence on how macro-level policy reforms can generate micro-level organizational returns in emerging market contexts.

This study investigates whether environmental practices generate financial value or primarily serve as legitimacy mechanisms in environmentally sensitive industries. Drawing on legitimacy theory, it examines the impact of green accounting and environmental performance on firm financial performance in Indonesia’s energy sector. Using a sample of 19 listed energy companies over the 2021–2024 period (76 firm-year observations), this study employs multiple linear regression analysis. Green accounting is measured by environmental cost disclosure, environmental performance by PROPER ratings, and financial performance by Return on Assets (ROA). The findings reveal that green accounting has a negative and significant effect on financial performance, indicating that environmental expenditures impose short-term financial constraints. In contrast, environmental performance shows no significant impact, suggesting that compliance-based environmental ratings are not yet value-relevant for firms. However, both variables jointly affect financial performance. These results suggest that environmental practices in the energy sector are largely legitimacy-driven rather than value-driven. This study extends legitimacy theory by demonstrating that sustainability initiatives do not automatically translate into economic benefits, particularly in high-cost, regulation-intensive industries. The findings underscore the need for firms to shift from compliance-oriented environmental practices toward strategic sustainability integration to achieve long-term value creation.

How Boards Use Competitor CEO Awards to Interpret Firm Performance in CEO Dismissal Decisions

The accelerating global energy transition has substantially increased demand for critical minerals such as copper, nickel, and lithium, positioning mining firms as key actors in the decarbonization of energy systems. However, the expansion of mineral extraction raises important sustainability challenges because mining activities remain highly energy- and carbon-intensive. This study investigates whether green innovation can simultaneously improve environmental performance and financial performance in critical mineral mining firms and examines the moderating role of institutional governance. Using a balanced panel of 35 publicly listed mining companies from Australia, Canada, Chile, Brazil, and Indonesia over the period 2015–2024, the analysis applies fixed-effects panel regressions complemented by dynamic specifications and multiple robustness tests, including alternative variable definitions and System Generalized Method of Moments (GMM) estimation. The results show that green innovation significantly reduces carbon intensity, indicating that environmental investments in renewable energy integration, electrification, and process efficiency contribute to improving emissions performance in mining operations. Green innovation also enhances firm financial performance, although the benefits emerge gradually over time, suggesting delayed financial gains followed by long-term efficiency improvements. Furthermore, governance quality strengthens the positive relationship between green innovation and firm performance, highlighting the importance of institutional environments in shaping the economic returns of sustainability strategies. By providing firm-level evidence across major mineral-producing economies, this study contributes to the literature on critical minerals, environmental finance, and the institutional dimensions of the just energy transition.

This study examines how inflation influences consumer purchasing behavior and the financial performance of retail firms within a large metropolitan economy. The analysis focuses on the Houston metropolitan market. It investigates whether rising prices alter the composition of demand between goods typically associated with higher-income consumption and goods that become relatively more attractive when household purchasing power declines. The research combines macroeconomic indicators, retail sales information, and stock market data covering the period from 2000 to 2025. An econometric framework is employed to evaluate the relationship between inflation, changes in consumer demand patterns, and the stock returns of retail firms. The empirical results indicate that periods of rising prices are associated with noticeable adjustments in household spending behavior. As purchasing power weakens, consumers shift a larger share of expenditures toward more affordable goods. Retail firms in these segments tend to experience stronger equity performance than those that depend more on discretionary spending. The findings highlight the importance of demand composition in explaining retail market outcomes during inflationary periods and provide insight for investors, policymakers, and researchers interested in the interaction between consumer behavior and financial markets.

This study examines the effect of monetary policy on poverty reduction in Nigeria from 1990 to 2023. Despite sustained efforts by the Central Bank of Nigeria to implement macroeconomic policies to stabilise the economy, poverty levels remain persistently high, raising questions about the effectiveness of monetary policy interventions. The study specifically investigates the influence of key monetary policy variables- monetary policy rate, money supply, and inflation- on poverty reduction. An ex post facto research design was adopted, utilising secondary data obtained from the Central Bank of Nigeria, National Bureau of Statistics, and World Bank databases. Econometric analysis, including unit root tests, cointegration tests, ordinary least squares (OLS) regression, and error correction modelling (ECM), was employed to examine both short-run and long-run relationships, while diagnostic tests were conducted to validate the model. The findings indicate that money supply has a significant negative effect on poverty, suggesting that expansionary monetary policy promotes poverty alleviation; conversely, inflation and high interest rates were found to increase poverty, highlighting the negative impact of macroeconomic instability on household welfare. Ultimately, the study concludes that monetary policy significantly influences poverty reduction in Nigeria but requires coordination with fiscal measures, structural reforms, and enhanced financial inclusion for maximum effectiveness. Consequently, the study recommends policy adjustments that prioritise price stability, lower interest rates, and greater access to financial services to strengthen the poverty-reducing impact of monetary interventions.

ABSTRACT Sustainability has become a defining challenge for firms in emerging economies, where pressures to address environmental and social concerns increasingly intersect with the need to remain financially competitive. Yet many organizations struggle to show whether sustainability disclosures create measurable business value, particularly in complex supply chain environments. This raises two central questions: To what extent do economic, social, and environmental disclosures affect firm financial performance? And how does Supply Chain Visibility (SCV) influence these effects by strengthening or weakening the disclosure–performance link? To answer these questions, this study develops a conceptual model informed by the Triple Bottom Line theory. The model was tested using Partial Least Squares Structural Equation Modeling (PLS‐SEM) with survey data from 120 senior managers of manufacturing firms in Ghana. The findings reveal that all three types of sustainability disclosure are positively associated with financial performance, with environmental disclosure showing the strongest effect. SCV significantly moderates these relationships by enabling firms to monitor, coordinate, and communicate sustainability practices more effectively across their supply chains. The study contributes to the literature by demonstrating that SCV functions both as a strategic capability and as a mechanism of institutional alignment, allowing firms to convert sustainability commitments into tangible financial outcomes in emerging markets. For managers, the results highlight the value of investing in SCV tools and supplier collaboration to embed sustainability within competitive strategy. For policymakers, the study suggests that incentives for visibility‐enhancing mechanisms can promote more transparent and sustainable industrial ecosystems.

Corporate governance plays a crucial role in enhancing organizational transparency, accountability, and long-term financial sustainability. This study examines the relationship between corporate governance practices and financial performance of firms across selected sectors. Using a sample of 100 firms, the study evaluates governance indicators such as board independence, audit committee effectiveness, CEO duality, and disclosure practices against financial performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Profit Margin. The study employs correlation and regression analysis to determine the strength of association. The findings reveal a positive and statistically significant relationship between strong corporate governance mechanisms and improved financial performance. The study contributes to policymakers, investors, and corporate leaders by emphasizing governance reforms as a driver of sustainable profitability.

The growing policy emphasis on innovation ecosystems and science parks raises the question of whether spatial clustering translates into measurable financial advantages at the firm level. This study aims to determine whether location within a science park is a significant determinant of firm financial performance, using evidence from IT firms in Ülemiste City (Estonia) and a comparable control group. The analysis is based on an unbalanced panel dataset of 190 firms (20 within the park and 170 outside) over the period 2020–2024 and employs descriptive statistics, parametric and non-parametric tests, and generalized least squares (GLS) regression modeling. The results indicate that firms located within the park demonstrate higher average sales revenue (4259.09 vs. 2525.70) and greater value added (728.51 vs. 578.32), suggesting a stronger scale of operations and higher economic output. Profitability indicators are also more stable within the park, with higher return on equity (25.59% vs. 22.13%) and a positive net profit margin (0.09 vs. −0.09), reflecting more consistent operational efficiency. In contrast, firms outside the park exhibit substantially higher growth rates in sales (674.45% vs. 25.19%) and net profit (253.95% vs. 213.77%), although these results are driven by extreme variability and outliers. Furthermore, liquidity levels are significantly higher outside the park (15.47 vs. 2.98), indicating more conservative financial management but also greater dispersion. The regression analysis reveals that firm-specific characteristics, particularly age, lagged sales revenue, and employment, have a stronger and statistically significant impact on performance than location. At the same time, the debt ratio negatively affects profitability indicators. These findings suggest that science park location contributes to scale and stability advantages but is not a dominant determinant of financial performance.

The goal of investing in shares is to generate capital gains or dividend income. The dividend policy of the business determines how much is distributed to investors. This study's goal was to investigate the connection between the financial performance of 28 listed companies on Tanzania's Dar es Salaam Stock Exchange and dividend decisions. A number of theories, including signalling theory and the Modigliani-Miller dividend irrelevance hypothesis, were used. The study adopted a quantitative method, analysing panel data from twenty-eight institutions spanning 2016 to 2024. It employed a panel regression model along with correlation analysis to investigate how various determinants influence firms’ financial performance. The 28 financial companies listed on the DSE as of December 31, 2024, were the study's target population. All businesses that were actively trading between 2015 and 2024 were examined. During the study period, both dividend payout ratio (t = -0.25, p > 0.05) and dividend yield (t = -1.52, p > 0.05) had a negative and statistically insignificant effect on dividend payouts. These findings indicated a negative relationship between dividend payout ratios and dividend yield and financial performance represented by ROA among Tanzanian firms. The estimated coefficient for dividend yield is -0.018520DP, suggesting a negative relationship. However, with a t-statistic of -0.249740 and a p-value of 0.8921, the result is not statistically significant at the 0.05 level. Therefore, we fail to reject the null hypothesis, concluding that the dividend payout ratio does not have a significant impact on firm earnings in Tanzania. The estimated model shows a dividend yield coefficient of -0.928870, indicating an inverse relationship between dividend yield (DY) and firm financial performance, measured by ROA. This implies that as dividend yield increases, firms' return on assets tends to decrease. However, the t-statistic of -1.517780 and a p-value of 0.1389 suggest that this relationship is not statistically significant at the 5% level. As a result, the null hypothesis (H₀₂) was rejected, meaning there was insufficient evidence to support a significant link between dividend yield and ROA in Tanzanian firms during the study period. In conclusion, the study finds that dividend-related decisions, specifically the pay-out ratio and dividend yield, do not significantly improve earnings performance among Tanzanian firms. As such, companies may benefit more from focusing on strategies that support profitability and sustainable development rather than emphasizing dividend distributions. While dividends can signal confidence to investors, firms should carefully balance shareholder returns with the need to retain earnings for future growth.

Type of the article: Research ArticleAbstractESG investing has emerged as a key factor in corporate strategy and capital investment, although its effects on stock returns in emerging markets such as India remain inconclusive. This paper investigates the effects of ESG scores and the financial performance of firms on the stock returns of firms in the Indian Nifty100 ESG Sector Leaders Index. Based on balanced panel data on 14 firms for 2015–2024, the study employs pooled OLS, random-effects, and fixed-effects models, conducts the Breusch-Pagan LM and Hausman tests to determine the appropriate specification, and finally estimates a two-way fixed-effects model. The empirical findings show that the ESG score has a statistically significant negative correlation with stock returns, indicating a negative relationship between ESG performance and short-term returns in the market. Return on Capital Employed (ROCE) is an important positive factor of stock returns, indicating that capital efficiency is important for stock price growth. The macroeconomic factors are also important: GDP growth has a statistically significant negative correlation with stock returns, whereas the statistical significance of inflation and industrial production is insignificant. There are no significant effects on returns in Earnings per Share (EPS) and Return on Assets (ROA). These findings imply that ESG integration in India is in its early development stage and could introduce short-term adjustment costs where corporate strategy and policy support are necessary to ensure sustainability initiatives are justified in the long-term value creation.

This study analyzes how sustainability practices and digitalization jointly influence the financial performance of European industrial firms, emphasizing differences between Western and Eastern Europe. The empirical analysis relies on a large multi-country panel dataset and employs fixed effects regression models with robust standard errors to account for unobserved firm-specific heterogeneity and common time shocks. Environmental sustainability is captured by the environmental component of ESG scores, digitalization is measured by digital investment intensity, and financial performance is proxied by return on equity (ROE). The findings indicate that stronger environmental practices are positively associated with profitability across the full sample. Digital investment intensity also has a positive and statistically significant effect on ROE. Importantly, the interaction term between environmental performance and digitalization is positive and significant for Western European firms but not for the full sample, suggesting that the relationship between environmental practices and financial performance may vary with the level of digital investment under specific regional conditions. However, the results reveal substantial regional heterogeneity. The positive effects of environmental practices, digitalization, and their interaction are primarily driven by firms in Western Europe, whereas the relationships are weaker and statistically insignificant in Eastern Europe. These findings underline the complementary role of digital transformation and the importance of institutional and technological readiness.

This study investigates the effects of Intangible Fixed Assets (IFA) on firm value (FIRVE), financial policy (FINPO), and financial performance (FINPER) for 12 firms consistently listed in the BIST Technology Index from 2006 to 2023. Using panel data analysis, the Market Value/Book Value (MV/BV) ratio represents firm value, the Total Debt/Total Equity (FINPO) ratio represents financial policy, and the Return on Assets (ROA) ratio represents financial performance. IFA is the independent variable, while Firm Size (FS) and Net Sales (NS) serve as control variables. The findings indicate that IFA positively and significantly affects firm value, but negatively impacts financial policy and financial performance. Firm size negatively affects firm value, yet shows a positive and significant relationship with both FINPO and FINPER. Moreover, net sales positively influence FIRVE and FINPER, but negatively affect FINPO. These results highlight the varying influence of IFA and firm-specific factors on key financial metrics.

The study examines the moderating role of selected NIFTY 50 index companies’ board characteristics, which comprises board strength, board meetings, number of independent directors, and the board’s gender diversity, in relation to the inclusion of female directors on the board, to analyze the relationship between firm financial performance and environmental, social, governance (ESG) performance rating. A total of 50 companies listed in the NIFTY 50 index covering eight years from 2015 to 2022 constitute the panel data sample. The board’s characteristics, along with its composition plays an integral role in ESG leadership to ensure sustainable business practices. The present study may produce contributing factors that can fill the gap in the lack of literature available in terms of factors that can moderate the relationship between ESG and the financial performance of firms. The study has been applied to analyse the data and perform a robustness check. Return on equity (ROE) is used as a proxy variable for the firm’s financial performance and is considered a dependent variable. ESG is denoted as an independent variable, while the number of directors, the number of meetings, the number of independent directors, and gender diversity in terms of including female directors on the board are proxies as moderators. As a result, an unfavourable and marginally significant relationship was found between ESG and ROE in the base model (Model 1). In Model 2 marginally significant interaction between board size and ESG was found; neither board independence (Model 4) nor board meetings (Model 3) shows any moderating effects. Lastly, in Model 5, gender diversity as a moderator shows positive but marginally significant results and indicates, as a major moderator among all, that the result of the study may contribute to the existing literature and value addition, suggesting the scope of the selected firms of the NIFTY 50 index companies of India to improve their financial payoff of ESG.

Lean Accounting (LA) is increasingly adopted as a means to embed operational relevance into financial measurement systems, thereby improving the visibility of waste, flow, and value creation from an accounting perspective. However, its performance outcomes remain inconsistent and under-explored, particularly in the Chinese context. Drawing on Contingency Theory, this study develops and empirically tests a conceptual model to examine how LA practices influence firm financial performance, with overproduction costs acting as a mediating variable and internal control quality as a boundary condition. Using panel data from 27,991 individual company-year observations across multiple industries in China (2014–2023), we found that LA practices are positively associated with financial performance and negatively associated with overproduction costs. Further analysis confirms that overproduction costs partially mediate this relationship, while strong internal controls amplify both the direct and indirect effects of LA on performance. The study contributes to the production control literature by validating the role of LA in reducing costs and enhancing performance under specific contextual conditions.

Purpose This paper examines whether corporate product diversification provided an “insurance” effect for firm performance during the COVID-19 crisis, using evidence from Vietnam. Design/methodology/approach We use panel data from the 100 largest non-financial Vietnamese companies for the period 2017–2022. The analysis employs pooled ordinary least squares (OLS) regression models to generate the results. Findings Our findings reveal that, on average, diversified firms underperformed focused firms and that the COVID-19 shock had a significantly negative effect on all firms' profitability. Importantly, we uncovered a nuanced benefit that diversified firms in non-manufacturing sectors experienced a less severe decline in firm profitability (ROA) at the pandemic's peak, suggesting a partial mitigating-shock effect of diversification in those industries. No similar buffer is observed for manufacturing conglomerates. Originality/value Our study corroborates the earlier findings of Fruehling et al. (2023) that the insurance benefits of corporate diversification during adverse external conditions depend on the nature of the crisis and the industry context. The COVID-19 pandemic may represent a boundary condition for this insurance effect.

Purpose: Potential investors in any sector seek to establish the financial performance of the sector before investment. The key factors that would affect the variability of the expected returns ought to be taken into consideration, and appropriate measures taken to mitigate any inappropriate conditions. This study sought to investigate the effect of gross domestic product on the financial performance of energy and petroleum firms listed at the NSE in Kenya. Methodology: The study employed a descriptive research design. All four energy and petroleum firms are listed on the NSE. Secondary data covering a period of seven years from 2017 to 2023 was sourced from published annual reports and financial statements of all four listed energy and petroleum firms at the NSE in Kenya, National Bureau of Statistics periodic reports, using a data collection sheet. Data was analyzed with the aid of STATA18 software using descriptive and inferential statistical tools. Descriptive tools included frequencies, percentages, means, variances, and standard deviations. Inferential statistics tools included Pearson’s Product correlation and panel regression analysis, which were used in examining how macroeconomic variables affect the financial performance of listed energy and petroleum firms at the NSE Kenya. Findings: The study revealed that the R2 value of 56% of the variations in the perceived financial performance can be explained by the variations in the gross domestic product, while factors not studied in this research contributed 44% of the variance in the dependent variable. Panel regression results concluded that gross domestic product significantly affects the financial performance of energy and petroleum firms listed at the NSE, Kenya. Unique Contribution to Theory, Practice and Policy: The study recommended that firms and policymakers should establish a Macroeconomic Risk Monitoring Unit within the Energy and Petroleum Regulatory Authority (EPRA) to track GDP in real time and guide strategic pricing, investment, and hedging decisions. Additionally, the NSE and CMA could jointly develop a Macroeconomic-Adjusted Energy Performance Index (MEPI), a specialized benchmark that tracks how listed energy firms respond to Kenya’s GDP cycles. This would promote transparency, attract investors, and facilitate evidence-based policymaking for energy-sector resilience.

This study seeks to establish how financial leverage mediates the relationship between corporate governance and the financial performance of 58 carbon-intensive firms listed on the Johannesburg Stock Exchange over the period 2015–2023. This study employed the two-step system generalised method of moments to address endogeneity issues. The results indicate that leverage negatively impacts a firm’s financial performance, but leverage does not mediate the relationship between corporate governance and a firm’s financial performance in carbon-intensive firms. The results of the study also reveal that board remuneration negatively influences a firm’s financial performance, yet board independence has an insignificant impact on firm performance. These results underscore the need for carbon-intensive companies to reassess their remuneration policies to ensure alignment with short-term financial benefits and long-term sustainability initiatives. The findings also suggest that sustainability projects financed predominantly by debt may negatively impact short-term financial performance, indicating the importance of a balanced capital structure during the decarbonisation process.

Purpose This study aims to examine the impact of environmental, social and governance (ESG) practices on the financial performance of family-owned firms in Mexico. It investigates explicitly whether ESG integration leads to improved outcomes and how the unique governance structures of family firms moderate this relationship. Design/methodology/approach This study utilizes panel data from 128 Mexican listed companies between 2014 and 2022, employing a fixed-effects model to examine the relationship between ESG practices and financial performance, as measured by returns on equity (ROE), return on assets (ROA) and operating margin. Family ownership is analyzed as a moderating factor, and robustness checks include dynamic Generalized Method of Moments (GMM) models and winsorization to control for outliers. Findings The results show that family firms integrating ESG – particularly environmental initiatives – exhibit significantly higher ROE and operating margins than nonfamily firms. However, the effect on ROA is selective, appearing only in robustness and subsample analyses. ESG adoption within family firms offers partial performance benefits, primarily through environmental and governance practices, which align with their long-term orientation and socioemotional wealth priorities. Originality/value This paper contributes to the literature by offering empirical evidence from an emerging economy, highlighting the nuanced impact of ESG integration on family firms. It advances socioemotional wealth theory in the context of corporate governance and sustainability, offering practical insights for investors, policymakers and family business leaders.