Non-financial Performance Research Articles

Organizational learning and boundary spanners’ agility in the financial inclusion in Indonesia

This study examines the influence of organizational learning and boundary spanner agility in the bank agent business of Indonesia’s financial inclusion. This study is based on quantitative studies of 325 bank agents in Indonesia. The results of this research strongly show that organizational learning has a significant impact on boundary spanners’ agility to achieve both financial and non-financial performance. This study presents a novel finding that organization learning with a commitment to apply and encourage learning activities and agility with improved responsiveness and resilience boundary spanners can achieve bank agent performance. Organizational learning of bank agents needs to improve commitment to apply and encourage learning activities, always be open to new ideas, and create shared vision and knowledge transfer mechanisms. Organizational agility in bank agents need also to improve the capability to be more responsive and adaptable to culture changes in a volatile environment. This research provides valuable insights to policymakers, banking supervisors, bank top management teams, and researchers on the factors that may improve the effectiveness of the agency banking business to promote financial inclusion. Participating banks in the agent banking business need to set a clear vision, scope, and priority of strategy to encourage organizational learning and agility.

A Theoretical Study of the Impact of ESG Performance on the Cost of Corporate Debt Financing

With the increasing global attention to environmental protection, social responsibility and corporate governance (ESG) issues, the ESG performance of enterprises has become an important indicator for creditors to assess their non-financial performance. This paper analyzes the development status quo of ESG ratings in China and the situation of corporate debt financing, combines information asymmetry theory, principal-agent theory, contract theory and other in-depth discussion of the impact of corporate ESG performance on its debt financing costs, so as to put forward targeted recommendations to further enhance the attention of China's listed enterprises to ESG ratings, as well as to reduce the cost of corporate debt financing measures put forward to lay a more solid theoretical foundation, to help enterprises better achieve high-quality and high quality of corporate governance. It lays a more solid theoretical foundation for further improving China's listed enterprises' attention to ESG ratings and proposing measures to reduce the cost of corporate debt financing, and helps enterprises better realize high quality and sustainable development.

The Effects of Green Intellectual Capital on Business Performance: Evidence from Serbia

Investing in green intellectual capital can create competitive advantage of companies in the long term. In short term, however, more orchestration is required for investment into green resources to boost financial and non-financial performance of business. The aim of this paper is to present the effects of Green Intellectual Capital (Green Human Capital, Green Structural Capital, and Green Relational Capital) on companies' business performance (including their financial and non-financial indicators). For this purpose, primary data were collected from targeted companies operating in the Serbian market (N=344) using a structured questionnaire. The results confirm the positive effects of Green Human Capital and Green Relational Capital on both financial and non-financial indicators of researched companies. Green Structural Capital was not found to have an impact on the companies' financial performance. These findings can contribute to 1) owners and managers in creating sustainable business models, 2) regulators in creating policy frameworks and incentives for sustainable development and 3) other business analysts focused on the green intellectual capital development in companies.

The moderating effect of ESG pressures on the relationship between the environmental management capabilities and the non-financial performance of Korean SMEs

Based on the resource-based view and institutional theory, this study investigates the impact of their environmental management capabilities and environmental, social, and governance (ESG) pressure on the non-financial performance of small and medium-sized enterprises (SMEs). In particular, it examines the interaction effect of ESG pressures on the relationship between SMEs’ environmental management capabilities and non-financial performance. For this study, a total of 1865 SME lists were obtained through Jeonnam Techno Park and Jeonnam Small Business Job and Economy Promotion Agency. Based on this, a total of 127 questionnaires were returned as a result of a telephone, e-mail, and online survey, and finally, an empirical analysis was conducted based on 120 questionnaires. We conducted an empirical analysis of Korean SMEs and obtained the following results: First, environmental management capabilities have a significant, positive effect on SMEs’ non-financial performance. Second, ESG pressure has a significant, negative effect on the non-financial performance of SMEs. Next, we analyzed the moderating effect of ESG pressures and observed that ESG pressures strengthen the positive effect of environmental management capabilities on non-financial performance. Based on the resource-based perspective and institutional theory, this study provides meaningful academic implications by examining environmental management capabilities and ESG pressures, which have not been identified in previous studies, as factors of non-financial performance that are becoming important under the new management paradigm, such as climate change and ESG. Furthermore, while ESG pressure has a significant negative effect on non-financial performance, we find that it is a moderating variable that strengthens the relationship between SMEs’ environmental management capabilities and non-financial performance, which has useful academic and practical implications for ESG and strategic management.

CEO performance targets: The impact of Big 4 accounting firms versus other compensation consultants

Using a sample of ASX 500 firms over the 2005–2019 period, we document substantial variation in the use of performance targets within Chief Executive Officer (CEO) compensation contracts, contrasting firms advised by Big 4 accounting entities with other compensation consulting firms. Firms that engage a Big 4 accounting firm are more likely to implement explicit non-financial performance targets within the short-term incentive plan, effectively minimising opportunities for post hoc justification. They also favour the incorporation of relative performance targets that mitigate pay for luck in the long-term incentive plan. Firms that engage a Big 4 accounting firm demonstrate a similar pay-for-performance relation to firms that do not engage a compensation consultant, while firms engaging non-Big 4 consultants exhibit a lower pay-for-performance relation. Our findings suggest that Big 4 accounting firms provide compensation recommendations that encourage the alignment of interests between managers and shareholders. JEL Classification: J33, M12, M52, L25

Measuring sustainable business performance in Malaysian hotels: The roles of green information, green innovation strategic orientation, and digital technology implementation

This study investigated the relationship between strategic orientation, green innovation, the implementation of digital technology, and financial and non-financial performance. It has also considered the factors of green information proactiveness, transparency, and formality. The research was conducted in the Malaysian hotel industry, using data from 401 employees and 74 managers. Path analysis was performed using partial least squares structural equation modeling. The results indicated that a strategic orientation towards green innovation is positively correlated with green information proactiveness and transparency, that implementing digital technology is positively linked to green information proactiveness and transparency, that the formalization of green information positively impacts financial performance, that non-financial performance is influenced by both proactive and formal green information practices; and that the proactiveness, transparency, and formalization of green information act as mediators in the relationship between green innovation strategic orientation and financial performance. This research provides valuable insights to help the hotel industry move towards a more environmentally responsible and technologically prosperous future by examining these relationships.

Exploring the role of entrepreneurial self-efficacy into performance of graduate-owned small and medium-sized enterprises in Tanzania

PurposeThe study assessed the role of entrepreneurial self-efficacy (ESE) in the performance of graduate-owned small and medium-sized enterprises (SMEs). Specifically, the paper focused on how graduate owners’ confidence in identifying and commercializing new business opportunities and create new commodities according to the market demand influences both, the financial and non-financial performance of graduate-owned SMEs.Design/methodology/approachThe study employed a cross-sectional survey design, in which 228 SME graduate owners majored in entrepreneurship were involved through online structured questionnaires. The relationship between the variables was determined by using partial least squares structured equation modeling (PLS-SEM).FindingsThe results indicate that entrepreneurial self-efficacy of graduate SME owners influence the financial and non-financial performance of their SMEs. Specifically, financial performance values have a ß-value of 0.576 and a p-value of <0.0001, non-financial performance values have a ß-value of 0.275 and a p-value of <0.0001.Practical implicationsIn order to improve the performance of graduate-owned SMEs, universities should strive to equip graduates with self-confidence, which will enable them to utilize their entrepreneurial competences acquired through the entrepreneurship course programs. This will enable them to tackle business environmental challenges and be able to run successful businesses.Originality/valueThe results of this study extend the use of the self-efficacy theory in explaining the performance of graduate-owned SMEs in Tanzanian. Further, the study focused on ESE as a specific domain developed from entrepreneurship learning for entrepreneurial outcomes. Therefore, the study engaged graduate entrepreneurs who majored in entrepreneurship, which has not been the focus in most studies.

Artificial Intelligence (AI) in the Banking Industry: A Review of Service Areas and Customer Service Journeys in Emerging Economies

The banking industry's shift towards digitalization, particularly Web 2.0 banking, signifies a profound change in the bank-client relationship. This transformation integrates digital elements into consumers' lives, digitising everyday activities and highlighting the importance of online social platforms and digital business operations. AI's growing interest in academia and commerce underscores its significant role in customer service. The study examines AI strategies in the banking industry, focusing on service areas and adaptation to the evolving technological landscape, particularly in customer service in developing economies. By adopting an interpretivist philosophy emphasising practicality, a qualitative approach was employed through a systematic literature review of 90 articles using thematic analysis. The research highlights AI's growing use in process automation, customer experience, stock market trend prediction, credit risk management, online banking, marketing management, and auditing. It concludes AI's positive impact on banking operational efficiency and customer service by recommending ethical AI usage, stakeholder collaboration, trust in data handling, and robust internal control systems. Additionally, it suggests exploring the association between organisational culture, leadership, and AI integration in developing economies. The research contributes to the theoretical and empirical frameworks that explain how AI is optimally integrated into banking operations, guiding policymakers and practitioners in leveraging AI to foster financial inclusion and economic growth. Future researchers should include non-profit institutions and non-financial performance metrics to gain insights into AI’s sustainability implications in banks beyond financial metrics.

The Impact of Corporate ESG Performance on Leverage Manipulation Empirical Evidence From A-Share Panel Data of Chinese Listed Companie

ESG stands for Environment (Environment), society (Social) and corporate governance (Government) respectively. It is a non-financial performance investment concept and enterprise evaluation standard, and has been used by enterprises as an important indicator to measure its quality. In the context of "deleveraging", there is a lack of targeted research on whether enterprise ESG performance can help enterprises "healthy" deleveraging. In this paper, the A-share listed companies in Shanghai and Shenzhen stock markets from 2008 to 2022 are selected as the original samples to explore the influence of ESG performance on the degree of leverage manipulation of enterprises. The empirical results show that good ESG performance can significantly reduce the degree of leverage manipulation of smes; In terms of mechanism test, ESG weakens enterprises' leverage manipulation motivation by reducing their own credit level, and enterprises' digital transformation inhibits their own leverage manipulation. Further heterogeneity test shows that ESG performance is better in eastern and central regions and state-owned enterprises. It is suggested that the ESG performance of enterprises should be further optimized and relevant supervision should be strengthened.

소비자 안전보건을 위한 ESG 공시기준에의 제품안전 지표설정 연구

ESG management has now become a new management paradigm both domestically and internationally. ESG is a non-financial performance indicator to achieve corporate sustainability, and encompasses responsibilities and obligations to stakeholders. Recently, as the safety issue of overseas products imported from online shopping malls in China has emerged, the need to ensure consumer safety and health from hazardous products is increasing. Accordingly, the establishment of product safety disclosure standards for consumer protection is required in the ESG information disclosure process. In this paper, in order to establish product safety indicators for sustainability disclosure standards for ESG management, the disclosure standards of major domestic and foreign initiatives were reviewed and analyzed to examine the introduction of product safety-related indicators, and product safety indicators that can be set for consumer safety and health were developed and presented. As product safety indicators, this paper first presented the occurrence of illegal and defective products, occurrence of product accidents, block hazardous products, number of recall orders and recommendations, and recall recovery rate as indicators that can be introduced throughout the entire product life cycle. In addition, the product risk level, the number and ratio of products for which risk assessment was performed, and the methods and standards used for risk assessment were presented as indicators related to product risk that indicate the level of impact of the product on consumer safety and health. In addition, the consumer safety index was presented as an indicator related to product safety accidents that occur during the consumer product use phase. The consumer safety index is an index that allows consumers to directly feel the level of product safety due to product accidents that occur when consumers use the product. It can be said to be a product safety index from the consumer's perspective that can protect consumer safety.

The Impact of ESG Practices on Corporate Performance in the Context of Digital Transformation: A Case Study of TBEA

In the context of digital transformation, enterprises are facing unprecedented opportunities and challenges, and environmental, social, and governance (ESG) practices have gradually become a focus of attention for enterprises. How to improve their own ESG practices to enhance corporate performance is crucial for the sustainable development of enterprises. This article selects TBEA as a case study enterprise to study its ESG practices from the perspectives of environment, society, and corporate governance in the context of digital transformation. Furthermore, relevant indicators are used to analyze the impact of ESG practices on corporate performance. Research has found that good ESG practices can promote the improvement of a company's financial and non-financial performance, with non-financial performance mainly reflected in the value created by the company for stakeholders.

How supply chain digitalization investment affects firm's financial and non-financial performance: Evidence from listed companies in China

Although many studies have focused on the impact of digitalization on firm performance, a definitive conclusion has yet to be reached. This study aims to comprehensively reveal the mechanisms by which SCDI affects firm performance. We employ large language model to identify the annual report information, and measure the SCDI for Chinese listed companies from 2017 to 2022. The empirical results indicate that SCDI contributes to improving supply chain capabilities, including reducing supply chain risk and enhancing supply chain efficiency. However, it also leads to increased financial risk and resource slack. Furthermore, SCDI decreases financial performance but increases non-financial performance. This study is an early attempt to uncover the paradoxical outcomes of SCDI, providing a new explanation of digitalization failure and the mechanisms behind the “IT-productivity paradox” hypothesis.

Measuring Hotel Financial and Non-Financial Performance in Thailand: The Application of Technology-Organization-Environment (TOE) Framework

Guided by the Technology-Organization-Environment (TOE) framework, the current study aims to test the impacts of organizational factors, technological factors, and environmental factors on the financial and non-financial performance (or goals) of hospitality firms. Unlike several empirical studies in the past, this study attempted to compare the effects of these factors on financial and non-financial performances. The authors proposed the contributions with clearer and more specific recommendations and a greater understanding of how managers can improve and adjust their strategic plan and implementation to achieve long-term firm performance. The data analysis was structural equation modeling. Prior to the data analysis, reliability and validity tests were conducted to certify the quality of the data. After screening the data carefully, based on 350 hospitality firms in Thailand, including 3–5-star hotels in Thailand representing all parts of the country, the results indicated that organizational factors and technological factors had significant effects on both financial and non-financial performance. The environmental factor demonstrated no significant effect on financial and non-financial performance. Moreover, for the theoretical contribution, this study provided empirical research by applying the TOE framework in the context of the hospitality industry, presenting that organizational factors and technological factors had significant impacts on the firm performance. Discussion with the past literature provided deeper insights into the findings. Research conclusions and practical recommendations were also provided.

The Effect of External Audit Quality, Related Party Transactions, Political Connec-tions, Esg Performance and Independent Assurance on Sustainability Reports on Firm Value

This research is based on the importance of companies knowing the factors that can affect the value of the firm in accordance with the development of the times so that the company can continue to survive in success in the long term. This study combines factors related to the company's non-financial performance, including sustainability performance such as ESG performance and the use of independent assurance in sustainability reports as well as other non-financial performance such as the quality of external audits, related party transactions, and political connections to determine the influence of these factors on the firm's value. The method used in this study is a panel data regression analysis method using e-views 9 with a sample of companies in the energy and basic materials sectors listed on the Indonesia Stock Exchange (IDX) in 2021-2023. The results of this study show that the quality of external audits, related party transactions, political connections, environmental performance (ESG_Environment), social performance to employees (ESG_Social Employees) and the use of independent assurance in sustainability reports have no effect on firm value while, social performance to the community (ESG_Social Community) and governance performance (ESG_Governance) have a positive effect on firm value.

Analysis Of the Financial and Non-Financial Performance of the Bogor District Office (A Case Study of The Public Works And Spatial Planning Office)

Analysis Of the Financial and Non-Financial Performance of the Bogor District Office (A Case Study of The Public Works And Spatial Planning Office)

Analysis of Green Merger: Evidence from Anhui Conch Cement Company Limited Getting Anhui Conch New

In order to the goal of achieving the carbon peak by 2030, many enterprises had to take the green transition, so the green merger and acquisition came into being, becoming one of the important means of the green transformation of many enterprise, so it is important to investigate whether green mergers can really bring enough performance to enterprises, this study mainly wants to explore based on the example of green merges and acquisitions to find out if green merchandise is really the best option of the Green Transition. The cement industry is the current high carbon emission industry, and the Conch Cement Company Limited as the largest cement production enterprise in China, the obligation and responsibility to lead the green Transformation, so this study has chosen the Conch Cement Company Limited for the purchase of the Conch New Energy Company in 2021, the analysis of the acquisition performance. This study will consider the green and purchase performance, clear green and buy definition and based on the case analysis, from both financial and non-financial performance, measure and make this purchase.

Sustainability reporting in selected automotive companies

Abstract The benefits of sustainability reporting are indisputable. These include, first and foremost, building trust. Transparency on non-financial performance can help reduce reputational risk and open a dialogue with stakeholders. Transparent sustainability reporting is also a sign of openness and responsibility. Efforts to develop the economy sustainably include the development of reporting concepts in this sphere. Sustainability activities are becoming an increasingly important element of business reports. This article aims to present and verify the current sustainability reporting at the level of comparison of reported indicators of selected automotive companies in the context of the most widely used Global Reporting Initiative systematics and the upcoming requirements defined by the Corporate Sustainability Reporting Directive (CSRD). It focuses on study cases and identifies good practices and difficulties of sustainable reporting in the automotive industry. This study used the case study method on selected automotive industry companies. The case study analyses a defined problem consisting of a real situation and information as a methodological tool. The findings show that the world’s major automotive companies are broadly endeavouring to realise sustainability practices. The main conclusion of the analysis is that the Environmental, Social, and Governance (ESG) framework and the Global Reporting Initiative (GRI), in addition to being complementary, can be combined not only to improve the strategic management of an organisation but also, in a broader context, serve the well-being of the local community and society at large. The article organises and systematises knowledge about the ESG concept and the GRI standard, which currently play an important role in sustainability reporting.

Leader Attention to Information and Sustainability Performance

In contemporary business practice, sustainability has emerged as a focal point for understanding value creation. This study examines how leader attention influences sustainability performance. Specifically, it investigates two dimensions of leader attention: search intensity, which pertains to the depth and thoroughness of exploration, and search selection, which involves the criteria used to prioritize sustainability issues. This study employed a quantitative approach utilizing a survey methodology. Data collection of 30 SMEs was conducted through a postal survey, targeting the Malaysian service sector listed in the directory of the Federation of Malaysian Manufacturers (FMM). Data is analyzed using PLS-SEM to investigate perceptions regarding leader attention towards corporate sustainability performance. Employing the ABV theory, the findings indicate that search intensity positively impacts both corporate financial and non-financial performance, highlighting the importance of comprehensive information-gathering and analysis processes. However, the study does not find a significant relationship between search selection and financial performance, suggesting a limited impact of specific information search strategies. These results underscore the pivotal role of leader attention in shaping organizational sustainability performance. The study contributes to understanding how leader attention enhances sustainability and provides valuable insights for organizations. Despite its contributions, future research could explore mechanisms through which search intensity influences financial outcomes and consider moderating factors across industries and regions. In conclusion, this research emphasizes the importance of data-driven decision-making and comprehensive information search processes for corporate financial and non-financial performance in today's information-rich environment.

How Entrepreneurial Orientation Impacts a Firm’s Non-financial Performance : The Mediating Role of Dynamic Capability

How Entrepreneurial Orientation Impacts a Firm’s Non-financial Performance : The Mediating Role of Dynamic Capability

Analysis of the Impact of Digital Transformation on Non-Financial Performance of Manufacturing Enterprises

As one of the important pillars of China’s national economy, the development of the manufacturing industry has attracted much attention. The manufacturing industry has become a key development area due to its high technology content, capital-intensive, knowledge-intensive, and many more characteristics. With the rapid development of big data information technology, emerging technologies such as artificial intelligence have brought a lot of convenience to people’s lives, and manufacturing enterprises have also realized the importance of reform and innovation, and have begun to carry out digital transformation. Based on the study of the motivation of digital transformation of manufacturing enterprises, this paper explores the transformation path of manufacturing enterprises to meet the needs of social development, and deeply analyzes the impact of digital transformation of manufacturing enterprises on enterprise performance, with a view to improving the unbalanced industrial structure and lagging technological development at the present stage through digital transformation.