85 research outputs found
Energy Infrastructure, Project Finance and Other Conventional Sources of Financing in Nigerian Energy Sector
No full textThis paper uses the generalised method of moments (GMM) to explore the relationship between energy infrastructure financing, project finance and other conventional sources of finance by taking Nigerian energy sector as a case study based on quarterly data for a 31-year period (from 1984 to 2014)
Corporate Accountability for Human Rights: Evidence from Conflict Mineral Ratings
No full textThis article examines the impact of sustainability-oriented governance factors on companies reporting on due diligence requirements of conflict minerals (DDRCM). We use the rating scores that are assigned by the Responsible Sourcing Network (RSN) on a sample of multinational companies between 2015 and 2019. We consider whether the existence and type of an independent external audit, the existence of sustainability reports to communicate a firm’s message, the inclusion of sustainability-related targets in executive compensation contracts, and the existence of board-level sustainability committees are associated with DDRCM reporting. We find that the combined effect of sustainability-oriented governance factors is associated with higher DDRCM reporting suggesting that sustainability governance plays an effective role in shaping the corporate response to conflict mineral risks. We also find that effective boards moderate the association between sustainability governance and DDRCM reporting suggesting that effective boards can substitute for the resources that are required for sustainability governance.Output Status: Forthcomin
Driving businesses towards a better climate: Macro and micro mechanisms to protect the planet
No full textThis study examines whether corporate commitment to climate change is driven by country-level factors related to cultural values and the legal system (LS) of a country. We also investigate the impact of corporate governance strength on climate change commitment and the extent to which there are moderating effects between corporate governance and cultural and LS influences. We use a large dataset of 21,564 firm-year observations of companies operating in the United States, UK, and China for the period 2013 to 2020 and develop a unique measure for climate change commitment using different proxies for measuring climate change practices. We find variations in climate change commitment among the three countries and that cultural values and LSs affect corporate commitment to climate change. Companies located in a socially oriented society, which are transparent and characterized by long-term orientation, are more strongly involved in climate change actions. The strength of corporate governance increases corporate commitment to climate change. Corporate governance also moderates some of the detrimental cultural influences on climate change commitment. These findings have implications for managers as they reveal that macro-level factors affect behavior and that corporate governance can help to moderate these factors
CEO power and CSR‑linked compensation for corporate environmental responsibility: UK evidence
No full textThis paper examines how CEO power and CSR-linked compensation influences environmental performance. We investigate the role of CEO managerial power (proxied by CEO duality and the presence of executive directors on the board), and CEO legitimate power (proxied by CEO tenure), adopting three measures of environmental performance, including the environmental scores, carbon emission scores and a composite index assessing the level of a firm’s engagement in several environmental practices. Analysing a sample of FTSE-All-Share companies for the period 2011–2019, we find that CEOs who receive compensation from engagement in environmental activities are motivated to improve environmental performance. Moreover, newly appointed CEOs engage more in environmental initiatives, suggesting that they use it as a signal to mitigate career concerns in their early tenure, whereas CEOs with managerial power engage less in environmental projects due to the costs associated with them. These effects are stronger in firms with independent and diverse boards, firms operating in the environmentally sensitive sectors and non-loss-making firms. This study provides original evidence of the role of environmental-linked incentives and managerial power in managing environmental impact and optimising the environmental performance of their companies
CEO gender, critical mass of board gender diversity, and ESG performance: UK evidence
No full textPurpose This study investigates the relationship between CEO leadership, gender homophily and corporate environmental, social, and governance (ESG) performance. We also investigate whether it is essential to have a critical mass of women directors on the board to create a significant power of gender diversity in leadership positions. Design/methodology/approach Our study is based on firms listed on the London Stock Exchange (FTSE-All-Share) from 2011 to 2019. CEO characteristics and other board variables were collected from BoardEx, and ESG data, and other related variables were collected from Eikon database. Findings We find a critical mass of female directors contributes to ESG performance suggesting that token representation of female directors on boards limits their effectiveness. We do not find support for the gender homophily perspective, our findings suggest that the effectiveness of female CEOs does not depend on the existence of a critical mass of female directors. Female directors and female CEOs are less likely to be associated with ESG activities when firms experience poor financial performance. We also find that younger female CEOs have a positive impact on ESG performance. Furthermore, we find female CEOs with shorter tenure are more likely to improve ESG performance. Overall, our findings suggest a substitutional effect between having female CEOs and gender diverse boards. Originality/value This study contributes to the debate on gender homophily in the boardroom and how that may affect ESG practices. It also complements existing academic research on female leadership and ESG performance and has important implications for senior management and policymakers
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Corporate commitment to climate change: the effect of eco-innovation and climate governance
No full textClimate change represents a significant problem to the planet which raises concerns from stakeholder groups
about corporate commitment to climate change issues. In this paper, we explore the effect of eco-innovation and
climate governance on corporate commitment to climate change. We develop a unique measure for climate
change commitment by considering four components, viz. whether a company supports the Sustainable Development
Goal 13 on climate action, whether a company is aware that climate change can represent commercial
risks or opportunities, whether a company reports Scope 3 CO2 emissions and whether a company sets a target
for emission reduction. We measure eco-innovation by using a score collected from the Eikon database that
reflects a company's capacity to reduce environmental costs, eco-innovation intensity measured as environmental
expenditures over revenues. We also create an index computed as a composite score by totalling five ecoinnovation
proxies collected from the Eikon database that reflect companies' efforts to reduce environmental
impact. Concerning climate governance, we focus on three proxies, namely the existence of an environmental
committee, climate incentives and the existence of sustainability reports. Based on a sample of companies listed
on the London Stock Exchange for the period of 2014–2020, we find that corporate eco-innovation is positively
associated with climate change commitment. We argue that firms that adopt innovative approaches to efficiently
control pollution and resource use and reduce their environmental impact are more committed to climate
change. We also find that climate governance is positively associated with climate change commitment. We claim
that companies that integrate climate change issues in governance can help address climate change risks and
opportunities. Our empirical evidence provides recommendations for managers and policymakers to promote the
adoption of eco-innovative technologies and integrate climate change issues in governance, which can contribute
to corporate commitment to climate change
Energy Infrastructure, Project Finance and Other Conventional Sources of Financing in Nigerian Energy Sector
No full textThis paper uses the generalised method of moments (GMM) to explore the relationship between energy infrastructure financing, project finance and other conventional sources of finance by taking Nigerian energy sector as a case study based on quarterly data for a 31-year period (from 1984 to 2014)
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