International Journal of Management and Sustainability

The effect of ESG activities on financial performance: The moderating effect of debt ratio

2024-01-30T04:49:09-06:00

This study examined the effect of environmental, social, and governance (ESG) management on corporate performance. We collected sample data on KOSPI-listed companies in 2021 using ESG ratings released by the Korea Corporate Governance Service. The system of ratings was segmented into three distinct categories for the purpose of analysis, namely the environment, society, and governance. An empirical investigation was conducted to determine how ESG ratings and separate ratings (E, S, and G ratings) affect financial performance. We also examined the moderating impact of the debt ratio on the association between ESG ratings and financial performance to enhance the explanatory strength of this relationship. The results indicated that ESG ratings and E and S ratings are positively related to financial performance, and the debt ratio has a negative moderating effect on the link between ESG ratings related to environmental aspects and financial performance. The findings indicate that firms need ESG management to improve financial performance. ESG ratings can be utilized to show the effects of environment-focused management, sustainability, and CSR initiatives on financial performance. Additionally, the moderation effect of the debt ratio in this study clearly demonstrates the connection between ESG rating and financial performance. Our analysis also demonstrates that organizations with high debt ratios and a lack of resources to pursue ESG are unable to devote a significant amount of time and resources to ESG management.

Determinants of intrapreneurial intention of small tea exporters in Sri Lanka

2024-02-01T05:23:01-06:00

The purpose of the study is to investigate the factors affecting the intrepreneurial intentions of small tea exporters in Sri Lanka. Intentions are crucial in any behavior to realize such behaviors and yield expected results. Owing to the problem of this study as how to initiate innovations in the global tea market, the study was carried out to find out the determinants of intentions of small tea exporters in Sri Lanka. This is a quantitative study followed by deductive reasoning. This study selected small tea exporters with the view of enhancing their intentions to proceed with these innovations, as large tea exporters are already introducing innovations to the tea industry. The study collected data from 120 small tea exporters who had registered with the Sri Lanka Tea Board by the end of 2020 using a structured questionnaire. The findings revealed that Individual Entrepreneurial Orientation (IEO), attitudes, and Entrepreneurial Self-efficacy (ESE) have significant and positive impact on Intrapreneurial Intention (INI) of small tea exporters in Sri Lanka while IEO contributes more to the INI. Finally, the findings of this study provide useful insights for small tea exporters in stimulating their intentions towards the introduction of innovations leading to a better performance in the global tea market. Further, it will guide policymakers and the government in designing the appropriate policies, rules, and regulations in this context.

The influence of leadership style, business ethics, and environmental performance toward corporate social performance and its impact on corporate financial performance

2024-02-02T01:35:35-06:00

The study presents research clarifying the influence of leadership style, business ethics, and environmental performance on corporate social performance and its implications for corporate financial performance. A survey was done in manufacturing companies of Indonesia’s State Own Enterprise (SOE) and affiliates. Corporate performance is not solely directed towards shareholders or exclusively defined by financial measures; rather, it encompasses a focus on the impact of the organization on the society in which it operates. The style of leadership plays a crucial role in influencing the strategic management process, enabling the organization to implement successful strategies to realize its vision. Business ethics provide advantages to companies by fostering a favorable influence on their competitive edge in the corporate landscape. Environmental concerns are gaining growing significance among various corporate stakeholders, encompassing consumers, shareholders, prospective investors, creditors, regulatory bodies, employees, and the wider public. The finding of the study was that a leadership style had a positive influence on corporate social performance but a negative influence on corporate financial performance. Business ethics had a negative influence on financial performance but a positive influence on corporate social performance and environmental performance. Environmental performance had a negative influence on corporate social performance but positive influence on financial performance. Corporate social performance has a positive influence on corporate financial performance.

The effect of corporate ethical misconduct on JSE-listed companies’ returns

2024-02-14T04:24:10-06:00

The purpose of the study was to determine the relationship between corporate misconduct announcements and share prices. The study employed an event study methodology where data was collected from a sample of 30 companies that were listed on the Johannesburg Stock Exchange (JSE). Data collected spanned a period of ten years, from 2011 to 2020. The study’s findings demonstrate that there is no significant relationship between announced incidents of ethical misconduct by JSE-listed companies and the returns of the underlying shares. Previous studies of a similar nature have asserted that the announced ethical misconduct of a company has a significantly negative effect on its share price. The study considers the dynamics that exist between principals (shareholders) and their agents (directors), who are charged with the governance of listed companies. It considers the morality of the actions taken by agents in governing organisations and the implications for the equity returns of principals. Contrary to the previous studies and studies in other countries, analysed results imply that equity holders of JSE-listed companies do not significantly punish companies that have incidents of ethical misconduct that are announced. The study’s findings have practical implications for the JSE and its requirements for disclosure of ethical issues to firm principals.

Diverse linkages between green bonds and equity indices of developed and developing economies

2024-02-14T04:37:12-06:00

This paper investigates the dynamic conditional correlations and volatility spillovers between global stock markets and international green bonds. Envisaging the linkages between the emerging green bond markets and global equities given the unforeseen global pandemic. We use R software to run bivariate VAR-BEKK GARCH and BEKK GARCH models to investigate the time-varying conditional volatility between global stock indices and green bond indices. Daily prices of all variables from October 2014 to April 2023 are sourced from the Bloomberg database. The short-term influence of past events, as well as the long-term persistence of green bonds, on the current conditional volatility of global equity indices of developed and emerging economies is observed. Whereas from equity markets to green bond indices, the short-term as well as long-term impact is confined to only 2-3 indices. The results provide future direction for policymakers, researchers, and global investors in hedging and creating an optimal portfolio.

Controlling social problems and environmental changes through sustainability: Evidence from Indonesian beverage companies

2024-02-21T05:49:44-06:00

The purpose of this study was to better understand how businesses anticipate reducing societal resentment and environmental change as a result of exploitative activities that damage the environment. The present study used a qualitative descriptive methodology to investigate the operational sustainability practices within beverage companies. The researchers employed Nvivo qualitative data analysis software, specifically version R 1.6.1, to effectively organize the interview data. This study demonstrates that CSR program execution does not solely rely on donations, which really makes the community dependent on the assistance given. The business has taken steps to carry out CSR in a sustainable way in order to promote community welfare and environmental sustainability in the future. In conclusion, this company has completed fifteen of the United Nations' (UN) sustainable development goals (SDGs). In order for stakeholders to properly reap the rewards of CSR, this research can offer an overview of the procurement of CSR programs for other companies. This study can provide an overview of the procurement of CSR programs for other companies so that the CSR received by stakeholders really feels beneficial. This study provides additional insight for subsequent researchers in the form of findings and information on the topic of CSR implementation, but the object studied is different.

Towards better public transport services: Understanding service quality attributes of public transport in states of developing countries

2024-02-22T04:23:06-06:00

This research investigates the service quality attributes of PT and the influence of the attributes on users’ satisfaction. Improving public transport (PT) facilities such as road networks and connectivity systems must align with service quality aspects. This research investigates the service quality attributes of PT and the influence of the attributes on users’ satisfaction. A survey was conducted to examine users’ perceptions of the service quality of PT in Sarawak, Malaysia. Service quality indicators have been chosen based on service quality attributes in previous research and analyzed using factor analysis (FA) to group the indicators into service quality attributes. Conformity Factor Analysis (CFA) was used to determine which attributes could significantly impact users’ satisfaction. Based on the survey results, the service quality of PT services in Sarawak is average, as most of the mean scores for each indicator of service quality and user satisfaction are less than 4.0. Four service quality attributes have been obtained from FA, i.e., vehicle condition, customer service, travel experience, and accessibility. The CFA analysis and structural model results showed that the attributes of vehicle condition, customer service, and accessibility significantly positively impact users’ satisfaction. The findings in this research can be used as references for PT providers, policymakers, and the government in improving the service quality of PT in Sarawak State.

The determinants of the financial inclusion of Indonesian female entrepreneurs

2024-02-22T04:43:48-06:00

This study intends to handle the latter gap: different results of the determinants of financial inclusion, i.e., financial literacy, age, income, and education. Furthermore, it applies the quantitative design, examining the statistical hypotheses. Additionally, the snowball sampling method chose the population of female entrepreneurs in Indonesia. Through the survey in 2022, this study effectively obtained one hundred and fifty-two samples and their responses. Furthermore, the logistic regression model and classification matrix analyze the obtained data. According to this study’s measurements of access, savings, and credit accounts (AA, SA, and CA), financial literacy effectively increases the financial inclusion of female entrepreneurs. At the same time, demographic features, i.e., age, income, and education, have a positive effect on these accounts. The classification accuracy of financial literacy towards AA, SA, and CA is 94.1%, 80.3%, and 95.4%, respectively. For age, the accuracy is 72.4% for AA, 81.6% for SA, and 67.1% for CA. For income, the accuracy is 89.5% for AA, 85.5% for SA, and 96.1% for CA. For education, the accuracy is 88.2% for AA, 78.3% for SA, and 94.7% for CA. Considering this evidence, businesswomen must have the financial knowledge to choose access, savings, and credit accounts to sustain and grow their business scope. For this purpose, central and local government support is still vital to assist them.

The determinants of talent retention in the information technology services sector in Malaysia

2024-02-24T05:51:48-06:00

This research aims to investigate the factors influencing talent retention within Malaysia's IT services sector. Specifically, it seeks to determine the impact of reward programs, career development, and work-life balance on talent retention. Conducted in a descriptive, non-contrived setting, this study employs a convenience sampling method. Self-administered online questionnaires are utilized for quantitative data collection. The research employs a correlation method to examine the association between reward programs, career development, work-life balance, and talent retention. Questionnaires, adapted from prior research, are distributed via WhatsApp and email, targeting a minimum sample size of 384. Data analysis is conducted using SPSS, a software suite designed for social science research. The study reveals that two out of the three hypotheses establish a significant relationship between rewards programs, career development, work-life balance, and the retention of talented workers in Malaysia's IT services sector. These findings suggest that attention to rewards programs and career development significantly influences talent retention in the Malaysian IT industry. The study recommends further exploration of variables that might exert a more substantial impact on talent retention within the Malaysian IT services sector. This research contributes valuable insights into the critical determinants of talent retention in Malaysia's IT services sector. The identified relationships between rewards programs, career development, and work-life balance offer practical guidance for industry professionals, informing strategies to enhance talent retention practices.

The effect of green purchase intention on emerging market consumers’ clothing purchase behaviour in South Africa

2024-03-05T04:28:19-06:00

The purpose of this study was to determine the influence of the green purchase intention of emerging market consumers on their green purchase behaviour in South Africa. The calls by the United Nations’ (UN) Sustainable Development Goals (SDGs) for consumers and organizations to act and behave sustainably have generated much interest in green consumer behaviour. In SA, calls have also been made for clothing companies to create awareness about the impact of clothing buyer behaviour on the environment. Organizations should also enhance consumer knowledge of their green buying behaviour and the effect this has on the environment. A survey was conducted online among the emerging consumers in Soweto, Johannesburg, targeting 300 respondents. The results confirmed that environmental knowledge and social/peer influence have an impact on green purchase intention and that green purchase intention does influence consumer behaviour. The effect of green purchase intention on green clothing behaviour was found to be higher than the effect of environmental knowledge and social/peer pressure on purchase intention. Clothing firms and policymakers should focus on raising awareness, disseminating information, and using peer pressure to enhance customers' inclination to make environmentally friendly purchases. This, in turn, will impact the buying behaviour of consumers in emerging markets.

Factors affecting the blockchain operation in Asia-Europe

2024-03-05T05:38:26-06:00

This study's primary goal is to identify the factors that affect the blockchain in retail markets to support more significant benefits to retail customers. Also, this study constructs blockchain facilities, blockchain volatility, blockchain transactions, blockchain intentions, and blockchain operations. This research also used a questionnaire survey; this research collects primary data from consumers in Asia and Europe. The researcher also presents the underlying theory, the theoretical structure, and the hypotheses through systematic random sampling to ensure the research objectives. Besides that, there were 233 responses to the survey questions sent to retail consumers. PLS-SEM tools are used for data analysis. The study's findings are that the Blockchain facility, blockchain volatility, and blockchain transaction were all found to positively impact the blockchain operation (dependent variable) in the Asia-Europe retail market via the mediation of behavior intention. The outcome of this research offers a valuable understanding of blockchain adoption in developing and developed countries. In addition to academic contributions, this paper’s findings are significant for blockchain companies and their operations in developing countries. Additionally, blockchain is beneficial to the Asia-Europe retail market. Hence, this study offers a considerable foundation for comprehending the associations between blockchain and the retail industry. This study did not consider SMEs or general industries. Also, this study's scope is limited to Asia and Europe. Additionally, this study solely employed cross-sectional data. Future studies should use longitudinal data to better understand how the link develops.

Age, gender, and self-concept as predictors of solid waste management among residents in cross river state, Nigeria

2024-03-27T03:21:47-05:00

This research investigated the correlation between individuals' age, attitude, and practices in handling solid waste in Cross River State, Nigeria. The study formulated three hypotheses to guide its direction and utilised a survey research design. The participants included 1,106 individuals selected through random sampling from a population of 6,923 using a stratified approach. The researchers developed a questionnaire, which six experts validated, and its reliability was assessed using Cronbach's alpha method. Various statistical methods were employed to test the hypotheses at a significance level of 0.05, including simple regression, one-way analysis of variance (ANOVA), and an independent t-test. The outcomes revealed that age, gender, and self-concept influenced solid waste management practices within the studied population. Specifically, males and individuals with a strong self-concept exhibited more active engagement in solid waste management than their female and low-self-concept counterparts. The data indicated that respondents aged 38 and above demonstrated the highest level of involvement in solid waste management, followed by those aged 18-27. Conversely, respondents aged 28-37 exhibited the lowest extent of engagement in solid waste management practices. This study has valuable implications for policymakers, waste management professionals, and community stakeholders. The insights can guide the development of evidence-based strategies to encourage responsible waste management behaviours, thereby contributing to a cleaner and more sustainable future.

Social capital and corporate resilience: The case of small and medium enterprises in Vietnam

2024-04-15T02:13:52-05:00

This study aims to investigate the role of social capital in fortifying resilience within Vietnam's SMEs, in the context of global and domestic volatility, uncertainty, complexity, and ambiguity coupled with resource constraints. Employing quantitative data analysis, the research performs a survey of 500 SMEs located in three regions, including the North, Central, and South of Vietnam. Simple random sampling strategy is applied based on the list of SMEs. Questionnaires have been sent to the representatives of the SMEs management board after being contacted and confirmed the voluntary participation of the survey. Using the PLS-SEM technique, a variance-based approach is conducted. The findings demonstrate the positive influence of both external and internal social capital on distinct aspects of resilience. Specifically, external social capital significantly enhances flexibility and adaptability, while internal social capital correlates with agility, flexibility, and anticipatory capability. These results provide the scientific groundwork for effectively harnessing social capital to augment SMEs resilience in Vietnam. Understanding the impact of social capital on resilience offers practical guidance for policymakers, business owners, and practitioners in shaping strategies and policies to fortify SMEs against the challenges of the dynamic business environment. Furthermore, by contributing insights into the relationship between social capital and SMEs resilience, this research enriches discussions on SMEs development and resilience, thereby fostering sustainable progress in Vietnam.

The influence of tick prices on high-frequency trading on market quality in LQ-45 Indonesia

2024-04-15T02:22:45-05:00

This research aims to determine the influence of tick prices on high-frequency trading on market quality in LQ-45 Indonesia. This study employs a quantitative approach. This study employed the Fixed Effect, Random Effect and Common Effect. The research data source used secondary data, with 37 stocks identified that met the criteria for High-Frequency Trading (HFT). The data analysis technique utilized panel data method. Three findings were revealed in the results of this research: first, it demonstrates a significant impact of tick price on High-Frequency Trading (HFT) activity; second, it reveals a positive influence of HFT on market quality, as evidenced by the metrics of spread, volatility, and risk-adjusted return. HFT activity in this research substantiates a positive impact on market quality, measured through spread, volatility, and risk-adjusted return. However, when assessing market quality based on liquidity, the research indicated that HFT volume and trades exert a noteworthy impact on diminishing market liquidity; and third, High-Frequency Trading (HFT) generally exhibits a notable impact on reducing spreads, even though its strength is not conclusively proven in the HFT volume test. The practical implications of this research offer insights into the positive impact of tick prices on the escalation of High-Frequency Trading (HFT) activity.

The new Naira notes redesign as drivers of the performance of small and medium scale enterprises in Nigeria

2024-04-15T02:53:08-05:00

The study analyzed whether the Naira note redesign matters for the performance of small and medium-scale enterprises in Nigeria. The study sought to examine (1) effect of the Naira note redesign on the performance of small and medium-scale enterprises; (2) effect of circulation of the new Naira notes on the performance of small and medium scale enterprises; (3) effect of Naira scarcity on the performance of small and-medium scale enterprises. The survey design was used, and questionnaire was administered to three hundred forty-seven (347) small and medium-scale enterprises in the south-east of Nigeria. Data obtained were analyzed using descriptive statistics (simple percentages, frequency count, mean, standard deviation, kurtosis, skewness, Pearson correlation) and inferential statistics (multiple regression). Findings showed that Naira note redesign has a significant negative effect on the performance of small and medium-scale enterprises. In addition, it was shown that the circulation and scarcity of the new naira notes had a significant effect on the performance of small and medium-scale enterprises in Nigeria. The study recommends that the government should implement currency revaluation and single exchange rate regime, as these would help in stabilizing exchange rates, and reduce uncertainties linked to small and medium-scale enterprises, improve competitiveness, and boost their confidence. Also, governments at all levels should invest in infrastructure, digital training, and enabling regulatory environments to encourage small and medium-scale enterprises to incorporate digital transformations and resilience in their operations, as it would enhance growth and development of small and medium-scale enterprises.

The role of organizational culture in the performance of SMEs in Vietnam during the economic crisis

2024-04-27T05:14:11-05:00

This study examines whether the financial crisis caused by the COVID-19 pandemic and the economic downturn will affect the role of organizational culture in the performance of SMEs in Vietnam. Specifically, the study aims to evaluate changes in the OC of SMEs during and after the crisis. Survey data used for analysis includes 202 SMEs in Vietnam. It was collected from January 2023 to March 2023. The research used the Denison culture model. SmartPLS 4.9.0.2 software was used to test the research model and compare cultural changes before and during the crisis. The findings suggest that organizational culture has a positive relationship with both accounting information systems (AIS) and organizational performance, but only adaptability affects corporate performance. Furthermore, AIS is positively related to the corporate performance of SMEs. The study shows that organizational culture, including involvement, consistency, and mission, is eroded during a crisis, supporting the theory that economic crises hurt corporate culture. Additionally, repeated research confirms that organizational culture positively affects AIS and that AIS positively affects organizational performance regardless of economic crisis. The results provide indicators for managers on how to promote sustainable business development. It is important for SMEs to establish a cultural identity that aligns with their goals and strategies to minimize conflicts of interest and improve competitiveness.