The moderating role of CEO power on the relationship between environmental, social and governance disclosure and financial performance in emerging market.
Environ Sci Pollut Res Int
; 30(36): 85803-85821, 2023 Aug.
Article
en En
| MEDLINE
| ID: mdl-37393591
ABSTRACT
The study proposes to examine how environmental, social and governance disclosure (ESG) affect the financial performance (FP) of Indian firms. Furthermore, it aims to evaluate the moderation impact of CEO power (CEOP) on the association between ESG on the FP. The study's target population is all firms indexed in NIFTY 100, representing the top one hundred firms by market capitalisation from 2017 to 2021. Data relating to ESG were collected and built based on the available data on Refinitiv Eikon Database. Results reveal that EDI positively and significantly impacts the ROE and TQ of Indian firms. Furthermore, SDI and GDI negatively and significantly affect the ROE and TQ of Indian firms. Moreover, ESG and CEOP have a significant impact on ROE. Nevertheless, ESG has a negative but highly significant impact on ROE, whilst it has a negative and low considerable impact on the TQ of Indian firms. Nonetheless, CEOP does not moderate the association between ESG and FP measured by ROE and TQ. This research contributes to the existing literature by introducing a moderator variable that has not been used in the Indian context; CEO power, which provides stakeholders and regulators with useful findings that would encourage firms to create an ESG committee to enhance ESG disclosure to compete on the world market and reach the United Nations (UN) Sustainable goal 2030. Furthermore, this paper provides insightful recommendations for creating an ESG legal framework for decision-makers.
Palabras clave
Texto completo:
1
Colección:
01-internacional
Base de datos:
MEDLINE
Contexto en salud:
1_ASSA2030
/
2_ODS3
Problema de salud:
1_financiamento_saude
/
1_fortalecer_rectoria_gobernanza
/
2_quimicos_contaminacion
Asunto principal:
Política Pública
/
Comercio
/
Revelación
Tipo de estudio:
Health_economic_evaluation
/
Prognostic_studies
Aspecto:
Determinantes_sociais_saude
País/Región como asunto:
Asia
Idioma:
En
Revista:
Environ Sci Pollut Res Int
Asunto de la revista:
SAUDE AMBIENTAL
/
TOXICOLOGIA
Año:
2023
Tipo del documento:
Article
País de afiliación:
Malasia