The effect of company growth on sustainable performance: A moderating perspective of stock mispricing in Indonesia and Japan
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Received March 5, 2024;Accepted April 14, 2024;Published May 30, 2024
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DOIhttp://dx.doi.org/10.21511/imfi.21(2).2024.26
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Article InfoVolume 21 2024, Issue #2, pp. 323-335
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Cited by2 articlesJournal title: Investment Management and Financial InnovationsArticle title: Unveiling the link of country compliance, risks, and cost of capital in socially responsible investingDOI: 10.21511/imfi.22(1).2025.05Volume: 22 / Issue: 1 / First page: 52 / Year: 2024Contributors: Erni Ekawati, Charla Frilichia Alik Napoh, Theodora Fildania Dhiru, Indra Wijaya KusumaJournal title: Knowledge and Performance ManagementArticle title: The role of universities in ensuring energy efficiency and sustainability: Investigating the link between UI GreenMetric ranking and countries’ sustainability indicatorsDOI: 10.21511/kpm.08(2).2024.10Volume: 8 / Issue: 2 / First page: 127 / Year: 2024Contributors: Denys Smolennikov, Alina Raboshuk, Oksana Drebot, Zhanna Oleksich, Liudmyla Huliaieva
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The adoption of environmental, social, and governance (ESG) measures to realize socially responsible companies continues to accelerate, becoming a trend amid global uncertainty due to climate change and the COVID-19 pandemic. This study aims to examine the effect of company growth on sustainable performance, moderated by company stock mispricing in Indonesia and Japan, representing a developing and a developed country, respectively. This study uses panel data regression, namely the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM), to test hypotheses. With a total of 42 observations from companies listed on the Indonesia Stock Exchange (IDX) and 112 observations from companies listed on the Japan Stock Exchange (JPX) during 2019–2020, the results show that a company’s growth has a negative effect on sustainable performance in Indonesia, while in Japan it has no effect. Stock mispricing strengthens the negative effect of company growth on sustainable performance in Indonesia but has no effect in Japan. This study found that companies in Indonesia place more emphasis on internal growth than on ESG implementation compared to companies in Japan. The implication of this study is that the implementation of ESG shows different dynamics when comparing two countries. Indonesia needs to evaluate the regulations governing socially responsible businesses in order to encourage further improvement of ESG performance. Meanwhile, in Japan, ESG practices have been running voluntarily, so enforcement from regulators is relatively less necessary.
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JEL Classification (Paper profile tab)Q56, Q51, M14
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References33
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Tables9
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Figures0
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- Table 1. Sample of Indonesian and Japanese companies
- Table 2. Variable measurements
- Table 3. Descriptive statistics
- Table 4. Market-to-book prediction to estimate stock mispricing
- Table 5. Descriptive statistics of Indonesia and Japan
- Table 6. Regression test results – Statistical model 1 in Indonesia
- Table 7. Regression test results – Statistical model 1 in Japan
- Table 8. Regression results – Statistical model 2 in Indonesia
- Table 9. Regression statistical model 2 results in Japan
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Conceptualization
Leddy Teresa Kristianthy, Erni Ekawati
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Data curation
Leddy Teresa Kristianthy
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Formal Analysis
Leddy Teresa Kristianthy, Erni Ekawati
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Funding acquisition
Leddy Teresa Kristianthy, Erni Ekawati
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Investigation
Leddy Teresa Kristianthy, Erni Ekawati
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Methodology
Leddy Teresa Kristianthy, Erni Ekawati
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Project administration
Leddy Teresa Kristianthy, Erni Ekawati
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Resources
Leddy Teresa Kristianthy, Erni Ekawati
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Software
Leddy Teresa Kristianthy
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Supervision
Leddy Teresa Kristianthy, Erni Ekawati
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Validation
Leddy Teresa Kristianthy, Erni Ekawati
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Visualization
Leddy Teresa Kristianthy, Erni Ekawati
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Writing – original draft
Leddy Teresa Kristianthy
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Writing – review & editing
Leddy Teresa Kristianthy, Erni Ekawati
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Conceptualization
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ESG disclosure and financial performance: Empirical study of Vietnamese commercial banks
Banks and Bank Systems Volume 19, 2024 Issue #1 pp. 208-220 Views: 4818 Downloads: 1415 TO CITE АНОТАЦІЯEnvironmental, social, and governance (ESG) disclosure becomes vital for banks to be transparent and accountable for their investments and lending decisions to shareholders, regulators, and society. The potential enhancement of shareholder value through ESG disclosure is still inconsistent. Empirical studies on the association between ESG disclosure and financial performance are mixed and limited in emerging economies. This study aims to examine whether ESG disclosure impacts the financial performance of 24 Vietnamese commercial banks in terms of return on assets (ROA), return on equity (ROE), and net interest margin (NIM). The study uses the feasible generalized least squares estimation method based on panel data from 2018 to 2022. The study employs content analysis on 12 themes related to environmental, social, and governance pillars to score policy disclosure based on the Fair Finance Guide Methodology. The results highlight the positive effects of ESG policy disclosure, individual environment disclosure (E), and individual governance disclosure (G) on bank financial performance. Notably, ESG, E, and G have the largest influence on ROE, with coefficients of 0.051, 0.036, and 0.027, respectively, at a 5% significance level. However, the study does not provide evidence of a statistically significant association between social disclosure and financial performance. These results provide empirical evidence for regulators and bank managers to shape ESG policies and practices aligning with international standards.
Acknowledgment
ESG disclosure score of 11 banks as primary data in this study is conducted under the project coordinated by the Fair Finance Vietnam coalition, as part of Fair Finance International. -
Academic resilience, emotional intelligence, and academic performance among undergraduate students
Uzoma Ononye, Mercy Ogbeta , Francis Ndudi
, Dudutari Bereprebofa , Ikechuckwu Maduemezia doi: http://dx.doi.org/10.21511/kpm.06(1).2022.01
Knowledge and Performance Management Volume 6, 2022 Issue #1 pp. 1-10 Views: 4790 Downloads: 1388 TO CITE АНОТАЦІЯAcademic resilience and emotional intelligence are considered important personal resources for furthering students’ academic performance. However, many educational organizations seem to trivialize the performance implications of these constructs in teachings and curriculum. Consequently, it can decrease not just their academic performance but also their employability, as they lack the generic competencies to adapt and survive in a stressful context. Even so, empirical evidence on integrating academic resilience, emotional intelligence, and academic performance remains unexplored in the Nigerian university context. Therefore, the study aimed to investigate the linkages between academic resilience, emotional intelligence, and academic performance in Nigeria. The partial least square (PLS) modeling method was utilized for testing the stated hypotheses with data collected from 179 final year undergraduate students in the regular B.Sc. Business Administration and B.Sc. Marketing program at Delta State University, Nigeria. From the PLS results, the study reported that academic resilience was positively related to emotional intelligence (β = 0.125, p = 0.007), academic resilience (β = 0.231, p = 0.000) and emotional intelligence (β = 0.260, p = 0.000) were positively related to academic performance, and emotional resilience mediated the positive relationship between academic resilience and academic performance (β = 0.057, p = 0.005). While academic resilience predicted academic performance, it also predicted emotional intelligence, which affected academic performance significantly and positively.
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Environmental Performance Index: relation between social and economic welfare of the countries
Tetyana Pimonenko, Oleksii Lyulyov
, Olena Chygryn
, Maksim Palienko doi: http://dx.doi.org/10.21511/ee.09(3).2018.01
Environmental Economics Volume 9, 2018 Issue #3 pp. 1-11 Views: 4738 Downloads: 1000 TO CITE АНОТАЦІЯThe paper deals with the analysis of methodology of Environmental Performance Index. The authors analyzed and systematized the main existing integrated indices, which were used for evaluation of environmental, social and economic situation in the countries. The authors allocated the environmental performance index as a basis for analyzing the environmental policy of the country. In this direction, the authors analysed the main features, structure and indicators of environmental performance index. The authors allocated the world-leader countries with huge level of CO2 emissions. According to the results, the authors aproved that these countries should improve their environmental policy. Accordingly, they occupied less position in environmental performance index. For the purpose to analyze the relation between ecological, social and economic welfare, the authors analyzed score of sustainable development goal index, social progress index and gross domestic product per capita. The comparison analysis of findings showed that countries with good position on environmental performance index have the strong position on sustainable development goal index and social progress index. The authors suggested that Ukraine should orient to the EU countries with purpose to improve the environmental policy.