The objective of this study was to identify the factors determining a company’s corporate governa... more The objective of this study was to identify the factors determining a company’s corporate governance related to climate change. We analyzed the effect of various sustainability corporate governance variables on the disclosure level of climate change governance. These variables included facts such as having a dedicated sustainability executive and board committee, the mediating effect of female representation on the board of directors, number of reporting years according to TCFD, membership in a sustainability index, MSCI ESG rating, the existence of a corporate climate transition plan, a mention of the UN Global Compact and GRI, company location, as well as company size and profitability. By adopting a multi-theoretical framework that included stakeholder theory as well the legitimacy and agency theory, the underlying research study used a sample of 100 of the largest global companies by market capitalization and their reporting for the year 2020. Based on 1,400 observations for fis...
International Business & Economics Research Journal (IBER), 2010
Over the last years, sustainable development has become one of the major issues that all global o... more Over the last years, sustainable development has become one of the major issues that all global organizations are facing. The Global Reporting Initiative, located in the Netherlands and considered the leading authority world-wide, has developed what is currently considered the “common framework for sustainability reporting”. The latest version of their reporting guidelines called G3 contains detailed instructions and standards on how to prepare sustainability reports. By using G3 guidelines, corporations show a strong commitment of continuous improvement of their sustainability reporting practices. The G3 guidelines are increasingly adopted by many global corporations and organizations. At present, more than 700 organizations voluntarily publish a sustainability report according to G3 guidelines. For the first time, this empirical study investigates if the better performing and/or governed corporations prepare their sustainability reports according to the G3 guidelines. The goal of ...
A shareholder theory of firm and a stakeholder theory of firm may differ in their respective eval... more A shareholder theory of firm and a stakeholder theory of firm may differ in their respective evaluation method of firm performance. Both theories however recognize the importance of value creation as the economic role of firms as institutions. The New Institutional Economics (NIE) emphasizes incentives alignment, while also viewing stakeholder engagements as methods to expand the boundaries of firms. The difference in performance evaluation between the two approaches can be reduced if stakeholders, while formulating incentive alignment, also evaluate the mechanisms of establishing a common currency value. The concomitant development of stakeholder engagement, incentive alignment, and value currency creation is argued to be an evolutionary process with the efficiency implications of the two theories tending to converge.
O&M: Firms & Other Social Institutions eJournal, 2011
As corporate social responsibility receives increased attention by company stakeholders, research... more As corporate social responsibility receives increased attention by company stakeholders, researchers are also increasingly exploring corporate social responsibility, its causes and implications. However little is known about the perception of corporate social responsibility. This study explores the link between stakeholder perception of corporate social responsibility and its relationship with underlying factors. The findings suggest that age of the corporation, community involvement, and cultural diversity have a significant influence on corporate social responsibility perception by stakeholders. Another importance is issue is the existence of a published corporate social responsibility or sustainability report. No significant results were found for the sustainable use of natural resources and Dow Jones Sustainability Index inclusion. The study concludes with recommendations for corporations on how they can enhance perception of corporate social responsibility by stakeholders.
As companies are increasingly focusing on corporate social responsibility (CSR) they are also dis... more As companies are increasingly focusing on corporate social responsibility (CSR) they are also disclosing more information on the linkage between their company’s vision, strategy, and long-term value creation in the context of their external environment. Many of the company stakeholders are now more than ever paying close attention to the financial and non-financial performance from a short, medium and long term perspective. As a first of its kind, this paper provides an in depth analysis of the current state of sustainability and integrated reporting of Canadian public mining and energy companies. Therefore, the financial reports and the sustainability reports for a sample of Canadian public mining and energy companies are analysed. The empirical results of a thorough quantitative and qualitative content analysis show that there is much room for improvement for reporting on long-term value creation for Canadian mining companies. Information gaps were uncovered for various assessment...
Consolidated financial statements have gained great popularity over the last decade with the resu... more Consolidated financial statements have gained great popularity over the last decade with the resurrection of acquisitions and the increased global expansion of business. This case study provides an actual case study of the preparation and presentation of a Consolidated Balance Sheet on the date of acquisition. An in-depth analysis is provided as to how to value the acquired entity, how to calculate Goodwill and how to measure the Non-Controlling interest portion. Work paper and adjusting entries are also highlighted to help facilitate the consolidation process.
This study adds new insights to the ongoing debate on corporate social sustainability and financi... more This study adds new insights to the ongoing debate on corporate social sustainability and financial performance by providing empirical evidence on stock price reaction to the announcement of first time additions of corporations to the Dow Jones Sustainability World Index (DJSI World). As the first global study of its kind, the investor reaction to the index inclusion announcement of a sample of 116 listed corporations is analysed over a time frame of several years. The results from our event study show that, in the year 2002, the market reacts positively to the first time announcement of a corporation being added to the DJSI World. The reaction becomes increasingly less in the years thereafter. In 2002, we find evidence of significant abnormal returns of 2.0% on the index inclusion announcement day. In all of the years between 2002 and 2005, significant cumulative abnormal returns during the time period around the announcement day could be observed. The declining and even negative market reaction to the DJSI World inclusion announcement for the years 2004 and 2005 represents a somewhat unexpected result that stands in stark contrast to the assumed growing importance of corporate social responsibility (CSR). We find no difference in investor reaction to the announcement of DJSI World inclusion for different countries. However, a significant difference in market reaction can be found for corporations in different industries. More specifically, we report that the share prices of corporations in the consumer product, healthcare, technology, and utilities industry seem to react more positively to the DJSI World inclusion announcement than the share prices of corporations in the basic material, financial, and industrial product industry. The results suggest that the overflow of CSR information makes it difficult for investors and other stakeholders to absorb the information and to determine the quality of CSR reporting. Standardized and audited regulation on CSR reporting would remedy this and is recommended.
The objective of this study was to identify the factors determining a company’s corporate governa... more The objective of this study was to identify the factors determining a company’s corporate governance related to climate change. We analyzed the effect of various sustainability corporate governance variables on the disclosure level of climate change governance. These variables included facts such as having a dedicated sustainability executive and board committee, the mediating effect of female representation on the board of directors, number of reporting years according to TCFD, membership in a sustainability index, MSCI ESG rating, the existence of a corporate climate transition plan, a mention of the UN Global Compact and GRI, company location, as well as company size and profitability. By adopting a multi-theoretical framework that included stakeholder theory as well the legitimacy and agency theory, the underlying research study used a sample of 100 of the largest global companies by market capitalization and their reporting for the year 2020. Based on 1,400 observations for fis...
International Business & Economics Research Journal (IBER), 2010
Over the last years, sustainable development has become one of the major issues that all global o... more Over the last years, sustainable development has become one of the major issues that all global organizations are facing. The Global Reporting Initiative, located in the Netherlands and considered the leading authority world-wide, has developed what is currently considered the “common framework for sustainability reporting”. The latest version of their reporting guidelines called G3 contains detailed instructions and standards on how to prepare sustainability reports. By using G3 guidelines, corporations show a strong commitment of continuous improvement of their sustainability reporting practices. The G3 guidelines are increasingly adopted by many global corporations and organizations. At present, more than 700 organizations voluntarily publish a sustainability report according to G3 guidelines. For the first time, this empirical study investigates if the better performing and/or governed corporations prepare their sustainability reports according to the G3 guidelines. The goal of ...
A shareholder theory of firm and a stakeholder theory of firm may differ in their respective eval... more A shareholder theory of firm and a stakeholder theory of firm may differ in their respective evaluation method of firm performance. Both theories however recognize the importance of value creation as the economic role of firms as institutions. The New Institutional Economics (NIE) emphasizes incentives alignment, while also viewing stakeholder engagements as methods to expand the boundaries of firms. The difference in performance evaluation between the two approaches can be reduced if stakeholders, while formulating incentive alignment, also evaluate the mechanisms of establishing a common currency value. The concomitant development of stakeholder engagement, incentive alignment, and value currency creation is argued to be an evolutionary process with the efficiency implications of the two theories tending to converge.
O&M: Firms & Other Social Institutions eJournal, 2011
As corporate social responsibility receives increased attention by company stakeholders, research... more As corporate social responsibility receives increased attention by company stakeholders, researchers are also increasingly exploring corporate social responsibility, its causes and implications. However little is known about the perception of corporate social responsibility. This study explores the link between stakeholder perception of corporate social responsibility and its relationship with underlying factors. The findings suggest that age of the corporation, community involvement, and cultural diversity have a significant influence on corporate social responsibility perception by stakeholders. Another importance is issue is the existence of a published corporate social responsibility or sustainability report. No significant results were found for the sustainable use of natural resources and Dow Jones Sustainability Index inclusion. The study concludes with recommendations for corporations on how they can enhance perception of corporate social responsibility by stakeholders.
As companies are increasingly focusing on corporate social responsibility (CSR) they are also dis... more As companies are increasingly focusing on corporate social responsibility (CSR) they are also disclosing more information on the linkage between their company’s vision, strategy, and long-term value creation in the context of their external environment. Many of the company stakeholders are now more than ever paying close attention to the financial and non-financial performance from a short, medium and long term perspective. As a first of its kind, this paper provides an in depth analysis of the current state of sustainability and integrated reporting of Canadian public mining and energy companies. Therefore, the financial reports and the sustainability reports for a sample of Canadian public mining and energy companies are analysed. The empirical results of a thorough quantitative and qualitative content analysis show that there is much room for improvement for reporting on long-term value creation for Canadian mining companies. Information gaps were uncovered for various assessment...
Consolidated financial statements have gained great popularity over the last decade with the resu... more Consolidated financial statements have gained great popularity over the last decade with the resurrection of acquisitions and the increased global expansion of business. This case study provides an actual case study of the preparation and presentation of a Consolidated Balance Sheet on the date of acquisition. An in-depth analysis is provided as to how to value the acquired entity, how to calculate Goodwill and how to measure the Non-Controlling interest portion. Work paper and adjusting entries are also highlighted to help facilitate the consolidation process.
This study adds new insights to the ongoing debate on corporate social sustainability and financi... more This study adds new insights to the ongoing debate on corporate social sustainability and financial performance by providing empirical evidence on stock price reaction to the announcement of first time additions of corporations to the Dow Jones Sustainability World Index (DJSI World). As the first global study of its kind, the investor reaction to the index inclusion announcement of a sample of 116 listed corporations is analysed over a time frame of several years. The results from our event study show that, in the year 2002, the market reacts positively to the first time announcement of a corporation being added to the DJSI World. The reaction becomes increasingly less in the years thereafter. In 2002, we find evidence of significant abnormal returns of 2.0% on the index inclusion announcement day. In all of the years between 2002 and 2005, significant cumulative abnormal returns during the time period around the announcement day could be observed. The declining and even negative market reaction to the DJSI World inclusion announcement for the years 2004 and 2005 represents a somewhat unexpected result that stands in stark contrast to the assumed growing importance of corporate social responsibility (CSR). We find no difference in investor reaction to the announcement of DJSI World inclusion for different countries. However, a significant difference in market reaction can be found for corporations in different industries. More specifically, we report that the share prices of corporations in the consumer product, healthcare, technology, and utilities industry seem to react more positively to the DJSI World inclusion announcement than the share prices of corporations in the basic material, financial, and industrial product industry. The results suggest that the overflow of CSR information makes it difficult for investors and other stakeholders to absorb the information and to determine the quality of CSR reporting. Standardized and audited regulation on CSR reporting would remedy this and is recommended.
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