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The Mediating Role of Environmental, Social, and Governance (ESG) Orientation in Finance and Investments

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 December 2022) | Viewed by 48020

Special Issue Editor

Department of Finance, School of Management, University of Quebec in Montreal, Montreal, Quebec, Canada
Interests: finance; development finance; financial institutions; financial markets; microfinance; corporate governance

Special Issue Information

Dear Colleagues,

Sustainable and socially responsible investments have become a major issue for investors around the world. Investors are trying to chart the course of the future, through environmental, social, and governance (ESG) orientation. They want to entrust financial institutions not only to grow their money, but also to expand the benefits to society as a whole. They want financial institutions to go beyond the primary function of finance as funding the economy, and generate profits (for investment institutions). Briefly speaking, they want to generate stakeholders’ values, a shift from the sole shareholders’ values.

This orientation has forced new habits for practitioners and for financial markets, who have to integrate extra-financial aspects (i.e., ESG aspects) into financial decision-making processes.

How do practitioners adapt to this new reality? What are the consequences of the ESG integrated funds allocation, in terms of risk management for corporations and investors? How do financial markets and investors react to new features such as ESG ratings? What are the results of new research by academics on this topic?

This Special Issue will address these questions, as well as other unanswered questions that are not listed here. Through both theoretical and empirical papers, it will provide new insights on the reasons, processes, practices, and implications of accounting for environmental considerations, social considerations, increased governance practices, business ethics, corporate social responsibility, and socially responsible investing.

The issue will be of interest to academics, practitioners, policy-makers, and by extension, the whole finance community.

The Special Issue welcomes valuable unpublished and non-submitted contributions.

Papers to be considered include but are not limited to the following topics:

  • Environmental, social, and governance (ESG) practices and disclosure
  • ESG performance
  • ESG ratings, market, and/or corporate reaction to ESG ratings
  • ESG impact measures of portfolios
  • Sustainable finance
  • Ethical finance
  • Sustainable investing and sustainable funds
  • Impact investing
  • Corporate social responsibility
  • Green finance and investment
  • Socially responsible investments
  • Microfinance

Prof. Jean-Pierre Gueyie
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Environmental, social and governance (ESG) practices and disclosure
  • ESG performance
  • ESG ratings, market and/or corporate reaction to ESG ratings
  • ESG impact measures of portfolios
  • Sustainable finance
  • Ethical finance
  • Sustainable investing and sustainable funds
  • Impact investing
  • Corporate social responsibility
  • Green finance and investment
  • Socially responsible investments
  • Microfinance

Published Papers (15 papers)

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Research

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22 pages, 570 KiB  
Article
How Does a Regulatory Minority Shareholder Influence the ESG Performance? A Quasi-Natural Experiment
by Di Song, Canyu Xu, Zewei Fu and Chao Yang
Sustainability 2023, 15(7), 6277; https://0-doi-org.brum.beds.ac.uk/10.3390/su15076277 - 06 Apr 2023
Viewed by 1778
Abstract
Based on China’s newly established Securities Investor Services Center (CSISC), a minority shareholder protection mechanism, we investigated how the CSISC shareholder influences the ESG performance of listed companies. Using a difference-in-differences analysis for a sample of Chinese listed companies during 2013–2017, we found [...] Read more.
Based on China’s newly established Securities Investor Services Center (CSISC), a minority shareholder protection mechanism, we investigated how the CSISC shareholder influences the ESG performance of listed companies. Using a difference-in-differences analysis for a sample of Chinese listed companies during 2013–2017, we found that the pilot reform of CSISC shareholding has a positive influence on the ESG performance of listed companies. We also found that this effect exists in large companies and in companies in non-high-polluting industries. Besides, analysts’ attention, external auditing quality, institutional shareholding, and highly-developed market intermediary and legal systems can strengthen the effect of CSISC shareholding on corporate ESG performance. Our findings inspire regulators in emerging markets to establish suitable mechanisms to protect minority shareholder rights in the long run. Full article
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18 pages, 301 KiB  
Article
Do Lenders Value a Corporate Sustainability Structure?—Evidence from the Cost of Bank Loans
by Abdelmajid Hmaittane, Jean-Pierre Gueyie, Mohamed Mnasri and Hayat El Guengue
Sustainability 2023, 15(6), 4720; https://0-doi-org.brum.beds.ac.uk/10.3390/su15064720 - 07 Mar 2023
Cited by 1 | Viewed by 1148
Abstract
In response to pressures placed on a firm by its stakeholders, managers may initiate various corporate sustainability activities. In such cases, they need to make decisions not only about the level of sustainability commitment, but also about the way to structure it. There [...] Read more.
In response to pressures placed on a firm by its stakeholders, managers may initiate various corporate sustainability activities. In such cases, they need to make decisions not only about the level of sustainability commitment, but also about the way to structure it. There are numerous ways to structure corporate sustainability activities with different financial consequences. In this paper, we investigate the separate and joint effects of the corporate sustainability level and the corporate sustainability structure on a firm’s bank borrowing cost. We test our predictions by conducting multivariate regression analysis on a sample of 1417 US bank loan facilities over the period 2006–2011. We find evidence that high-quality borrowers with a high level or diversified structure of sustainability activities benefit from lower loan interest rates. Also, our analysis of the joint effects shows that only high-quality borrowers with a high level and diversified sustainability activities enjoy lower bank loan costs. Overall, these results reveal that lenders value how firms structure their sustainability activities. Therefore, they have important implications for managers and bankers. Full article
22 pages, 955 KiB  
Article
Consumer Motivation behind the Use of Ecological Charcoal in Cameroon
by Ahmed Moustapha Mfokeu, Elie Virgile Chrysostome, Jean-Pierre Gueyie and Olivier Ebenezer Mun Ngapna
Sustainability 2023, 15(3), 1749; https://0-doi-org.brum.beds.ac.uk/10.3390/su15031749 - 17 Jan 2023
Viewed by 1294
Abstract
Climate change and global warming are amplified by pollution and deforestation. For this reason, governments around the world meet every year to find ways to reduce pollution and deforestation and ensure sustainable development. The use of clean energy, particularly ecological charcoal, appears to [...] Read more.
Climate change and global warming are amplified by pollution and deforestation. For this reason, governments around the world meet every year to find ways to reduce pollution and deforestation and ensure sustainable development. The use of clean energy, particularly ecological charcoal, appears to be an appropriate solution in developing countries. The main objective of this research is to assess the motivations for the consumption of ecological charcoal in Cameroon, using a quantitative approach based on Partial Least Squares Structural Equation Modeling (PLS-SEM). Data were collected from 525 households in the cities of Yaoundé and Douala, Cameroon. The results show that the desire to protect the environment (ecological sensibility), the desire to reduce the energy costs of cooking (economic sensibility), the need to improve health and security, and the desire to enhance the quality of meals and to preserve the cleanliness of pots are all determinants in the consumers’ choice to use ecological charcoal. These results are refreshing. In Cameroon, in addition to its economic value, the massive consumption of ecological charcoal will contribute to a reduction in household waste management problems in cities and municipalities, while preserving the environment. Full article
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18 pages, 308 KiB  
Article
Analysing the Scope of Local Authorities (LAs) in Facilitating and Influencing the Sustainability of Foreign Direct Investment in Namibia: A Case Study of the Windhoek and Walvis Bay LAs
by Ralph Vezembouua Marenga, Lesley Blaauw and Omu Kakujaha-Matundu
Sustainability 2023, 15(2), 1288; https://0-doi-org.brum.beds.ac.uk/10.3390/su15021288 - 10 Jan 2023
Viewed by 1227
Abstract
The negative and neutral developmental experiences of the Windhoek and Walvis Bay local authorities (LAs) with facilitating foreign direct investment (FDI) are disconcerting and contradict the bottom-up development approach in Namibia. The objective of this study is to analyse the legislative scope of [...] Read more.
The negative and neutral developmental experiences of the Windhoek and Walvis Bay local authorities (LAs) with facilitating foreign direct investment (FDI) are disconcerting and contradict the bottom-up development approach in Namibia. The objective of this study is to analyse the legislative scope of LAs in facilitating and influencing FDI sustainability. A qualitative research method was followed by analysing secondary data and interviewing purposely selected key respondents. The thematic analysis of data was guided by two independent variables of interest: (1) decentralised functions of FDI facilitation in a multi-level governance (MLG) system; and (2) policy and legislative harmonisation in an MLG system. The key findings of this study indicate that the current scope of Namibian LA FDI facilitation functions are insufficient for influencing FDI sustainability for local development. The theoretical implications of this study are that it contributes to the sustenance of the MLG theory—which is inept at explaining the dynamics LAs experience in MLG systems. In the absence of an enabling legislative framework, the current study suggests the following practical implications: (1) bottom-up development using FDI cannot be achieved; (2) LAs cannot influence the sustainability of FDI for local development impact; and (3) LAs cannot protect local communities against the capitalist wrath and exploitative tendencies of FDI. Full article
22 pages, 357 KiB  
Article
Corporate Governance and Financial Performance: The Interplay of Board Gender Diversity and Intellectual Capital
by Zeineb Ouni, Jamal Ben Mansour and Sana Arfaoui
Sustainability 2022, 14(22), 15232; https://0-doi-org.brum.beds.ac.uk/10.3390/su142215232 - 16 Nov 2022
Cited by 5 | Viewed by 1981
Abstract
Prior research has found mixed evidence regarding the relationships between board gender diversity (BGD) and firm value. Moreover, there is a lack of evidence on the channels through which BGD affects firm performance; hence, this paper tackles this issue. We aim to investigate [...] Read more.
Prior research has found mixed evidence regarding the relationships between board gender diversity (BGD) and firm value. Moreover, there is a lack of evidence on the channels through which BGD affects firm performance; hence, this paper tackles this issue. We aim to investigate the relationship between BGD and firm performance and to explore the mediating role of intellectual capital efficiency (ICE) in this relationship. Using a multivariate regression analysis and a sample of 4008 North American firms from 2002 to 2020 (14,382 firm-year observations), we find that gender diversity is positively related to financial performance, confirming that a diversified board improves board effectiveness and brings new resources to the firm, which allows it to improve its performance. More interestingly, the results of the Structural Equation Model (SEM) indicate that the relationship between gender diversity and performance is more pronounced with the mediating role of ICE. Our results are robust, controlling for the endogeneity and heteroscedasticity issues, with several controls for firm- and country-level characteristics, using alternative sample compositions and alternative econometric techniques, and including year, industry, country and firm-fixed effects. Interestingly, this paper shows strong evidence that the effect of BGD on firm value is more effective by incorporating the role of intellectual capital efficiency. Full article
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18 pages, 319 KiB  
Article
The Determinants of Micro Finance Institutions’ Decision to Receive a Social Rating: An Institutional and Resource-Dependence Perspective
by Christelle Simo, Hubert Tchakoute Tchuigoua and Christophe Faugere
Sustainability 2022, 14(19), 11986; https://0-doi-org.brum.beds.ac.uk/10.3390/su141911986 - 22 Sep 2022
Viewed by 1185
Abstract
We examine the determinants of MFIs’ social rating decisions according to institutional and resource dependency pressure factors. We exploit a unique data set containing 221 MFIs resulting in 767-year observations, obtained from both mixed market and social rating agencies (Planet, MicroFinanza, and Microrate [...] Read more.
We examine the determinants of MFIs’ social rating decisions according to institutional and resource dependency pressure factors. We exploit a unique data set containing 221 MFIs resulting in 767-year observations, obtained from both mixed market and social rating agencies (Planet, MicroFinanza, and Microrate rating agencies). Our data was collected for both rated and non-rated MFIs between the years 2006 and 2018, in six major less-developed regions of the world. Our study contributes to the CSR literature in microfinance as the decision to be rated acts like a CSR signal. Our research shows that the tighter the rule of law the less inclined MFIs are to seek a rating. In addition, we borrow from the resource-dependence perspective to demonstrate that proxies for resource (in)dependence such as for-profit status, mature stage, and subsidization are negatively associated with the obtention of a social rating. Overall, in the less-developed regions of the world, when MFIs operate in a strongly regulated environment and have a strong position (financial and mission-wise), with respect to investors, they are less willing to obtain a social rating. Full article
17 pages, 1153 KiB  
Article
I Am Ready to Invest in Socially Responsible Investments (SRI) Options Only If the Returns Are Not Compromised: Individual Investors’ Intentions toward SRI
by Heena Thanki, Sweety Shah, Harishchandra Singh Rathod, Ankit D. Oza and Dumitru Doru Burduhos-Nergis
Sustainability 2022, 14(18), 11377; https://0-doi-org.brum.beds.ac.uk/10.3390/su141811377 - 10 Sep 2022
Cited by 5 | Viewed by 2747
Abstract
SRI, or socially responsible investment, is a relatively new concept used to describe an investment that considers social, ethical, and environmental concerns. The purpose of this study is to investigate if collectivism, concern for the environment, financial performance, and awareness of SRI influence [...] Read more.
SRI, or socially responsible investment, is a relatively new concept used to describe an investment that considers social, ethical, and environmental concerns. The purpose of this study is to investigate if collectivism, concern for the environment, financial performance, and awareness of SRI influence an individual’s propensity to invest in socially responsible investments (SRI). Secondly, the study evaluates the influence of the TPB (Theory of Planned Behavior) model constructs, attitude, subjective norms, and perceived behavioral control on the SRI investment intention of individual investors. A structured questionnaire was used to collect data on 449 individual investors for this cross-sectional investigation. The data were then analyzed further with a two-step structural equation modeling technique performed in Smart PLS 3.2.9. The PLS-SEM analysis found that collectivism, environmental concerns, financial performance, and awareness of SRI all had significant positive effects on attitudes toward SRI, which, in turn, resulted in SRI investment intention. Further, subjective norms and perceived behavioral control had a significant impact on individuals’ intentions regarding SRI. Full article
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18 pages, 589 KiB  
Article
Do Green Banking Activities Improve the Banks’ Environmental Performance? The Mediating Effect of Green Financing
by Xin Zhang, Zhihui Wang, Xiaobing Zhong, Shouzhi Yang and Abu Bakkar Siddik
Sustainability 2022, 14(2), 989; https://0-doi-org.brum.beds.ac.uk/10.3390/su14020989 - 17 Jan 2022
Cited by 46 | Viewed by 10428
Abstract
The main purpose of this study is to identify the impact of green banking activities on green financing and banks’ environmental performance. It also identifies the mediating effect of green financing on the relationship between green banking activities and environmental performance of private [...] Read more.
The main purpose of this study is to identify the impact of green banking activities on green financing and banks’ environmental performance. It also identifies the mediating effect of green financing on the relationship between green banking activities and environmental performance of private commercial banks (PCBs) in Bangladesh. Besides, this study also examines the major challenges and benefits of green banking development in an emerging economy like Bangladesh. The convenience sampling technique was used to collect primary data from bankers of PCBs in Bangladesh, and a final sample size of 352 was recorded. To assess the relationship among the study variables, the Structural Equation Modelling (SEM) approach was employed. The empirical results revealed that green banking activities exhibit a significantly positive effect on banks’ environmental performance and sources of green financing, and that sources of green financing significantly influence banks’ environmental performance. Additionally, it was observed that green financing mediates the association between green banking activities and banks’ environmental performance. Furthermore, the study identified customers’ insufficient awareness towards green banking, high investment costs, technical obstacles, lack of capable and competent staff in appraising green credits/loans, and difficulties and complexity in assessing green projects as major challenges affecting the development of green banking in Bangladesh. Moreover, the study also discovered that increasing banks’ competitiveness, reducing long-term costs and expenses, providing online banking facilities, improving customers’ goodwill, and reducing carbon footprints are the key benefits of green banking development, as it helps in the achievement of the sustainable economic development of the country. Therefore, major theoretical and managerial policy implications are further discussed with study limitations and future research directions. Full article
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26 pages, 4081 KiB  
Article
Measurement and Path Selection of Rural Development Level in Enclave Areas: A Case Study of Jingyuan County, Gansu Province
by Jianwu Qi, Wei Li, Zongxiang Wang and Haozhou Fang
Sustainability 2021, 13(17), 9904; https://0-doi-org.brum.beds.ac.uk/10.3390/su13179904 - 03 Sep 2021
Cited by 10 | Viewed by 2491
Abstract
The development of rural areas is a significant component in social and economic activities. It is very important for optimizing the allocation of rural production and living factors, promoting the integration of urban and rural areas and sustainable development to identify the characteristics [...] Read more.
The development of rural areas is a significant component in social and economic activities. It is very important for optimizing the allocation of rural production and living factors, promoting the integration of urban and rural areas and sustainable development to identify the characteristics and main types of regional rural development. In this paper, 169 villages in Jingyuan County were selected as the research object, and the evaluation index system of rural development level was constructed from the perspective of “Factor-structure-function”. The rural development level and spatial structure characteristics of Jingyuan County were analyzed by using rural development index, regional function index, nearest neighbor index, and exploratory spatial data analysis, and the types and specific paths of rural development were determined. The results showed the following: Rural development of Jingyuan County is at a low level, which is characterized by “high in the south and low in the north”. The level of rural development shows significant spatial dependence in the global space, and the spatial agglomeration characteristics are obvious, which are manifested as strong agglomeration dominated by resource endowment and cultural function and weak agglomeration dominated by production function and location relationship. The local space is characterized by stable high value and high value (H-H), low value and low value (L-L) bidirectional agglomeration. According to the spatial characteristics of the rural development level, the “4 + 10 + 6 + 2” system of rural development type identification in Jingyuan County was constructed, and finally it was determined that policy leading and characteristic protection are the dominant types of rural development. Based on this, this paper put forward specific paths and development models of different types of rural development in Jingyuan County from seven dimensions: industry, population, land, tourism, space, culture and ecology, so as to provide ideas and references for the integration of urban and rural areas, the implementation of rural revitalization strategy, and sustainable development in the western poverty-stricken areas. Full article
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12 pages, 790 KiB  
Article
A Virtuous Circle of Governance Contests with Externalities
by Sung-Hoon Park and Jason F. Shogren
Sustainability 2021, 13(14), 7766; https://0-doi-org.brum.beds.ac.uk/10.3390/su13147766 - 12 Jul 2021
Viewed by 1332
Abstract
Governments create contests to allocate resources to stakeholders, e.g., grants, contracts. The actions of these stakeholders can generate a positive externality for themselves—the contest winner can attract additional outside funding and donations from third-parties who want to jump on the winner’s bandwagon. Herein [...] Read more.
Governments create contests to allocate resources to stakeholders, e.g., grants, contracts. The actions of these stakeholders can generate a positive externality for themselves—the contest winner can attract additional outside funding and donations from third-parties who want to jump on the winner’s bandwagon. Herein we examine the externalities arising from these contests created by governance and their impact on a virtuous circle of governance contests. Among various conditions that make governance virtuous, we focus on the equilibrium expected payoffs of stakeholders, the difference in them, and the rent-dissipation rates. Our study shows that the impact of externalities on the efficiency of governance depends on two key factors: (i) the choice of governance contests, the player-externality and the winner-externality, and (ii) the relative efficiency of stakeholders’ efforts. Full article
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22 pages, 335 KiB  
Article
Business Analytics for Managing Performance of Microfinance Institutions: A Flexible Management of the Implementation Process
by Isabelle Piot-Lepetit and Joseph Nzongang
Sustainability 2021, 13(9), 4882; https://0-doi-org.brum.beds.ac.uk/10.3390/su13094882 - 27 Apr 2021
Cited by 5 | Viewed by 2273
Abstract
Microfinance institutions are social enterprises that focus on the provision of financial services to poor populations excluded from the conventional banking system. These organizations face a double-bottom line, dealing simultaneously with a financial and social objective. The challenge of putting it into action [...] Read more.
Microfinance institutions are social enterprises that focus on the provision of financial services to poor populations excluded from the conventional banking system. These organizations face a double-bottom line, dealing simultaneously with a financial and social objective. The challenge of putting it into action is great, especially when there is a need to involve all stakeholders and to replicate the experience to new communities. One way to sustain both financial performance and social impacts is to develop a business analytics solution aiming at measuring and expanding social impacts in a financially sustainable way. This paper describes main elements to be considered, in particular the organizational context, the development process, and implementation issues that would facilitate or impede the deployment of a business analytics initiative in practice. Finally, two main components of the implementation process are specifically pointed out: a behavioral fit of the business analytics solution to the cultural context of the organization, and the country where it is deployed, and a flexible commitment in the management of the business analytics initiative implementation. Full article
11 pages, 218 KiB  
Article
Complex Risks of COVID-19 Pandemic: Possible Metamorphization of National into Cosmopolitan Sustainable Development
by Sergey A. Kravchenko
Sustainability 2021, 13(5), 2976; https://0-doi-org.brum.beds.ac.uk/10.3390/su13052976 - 09 Mar 2021
Cited by 3 | Viewed by 1791
Abstract
The purpose of this article is to analyze the complex risks of coronavirus disease 2019 (COVID-19) and their nonlinear influence on sustainable development. In the context of this global pandemic, this article shows the limits of “thinking national” and argues that metamorphization of [...] Read more.
The purpose of this article is to analyze the complex risks of coronavirus disease 2019 (COVID-19) and their nonlinear influence on sustainable development. In the context of this global pandemic, this article shows the limits of “thinking national” and argues that metamorphization of national to cosmopolitan sustainable development is possible on the basis of overcoming national egoism with cosmopolitan survival. The article builds on the “the theory of metamorphosis” proposed by U. Beck (2010). Phenomena are analyzed through the effects of the “arrow of time” (I. Prigogine) and “methodological cosmopolitanism”. The main results are as follows: The risks of COVID-19 have mixed effects on sustainable development. On the one hand, they undermine the traditional approaches towards social security and sustainability, but on the other hand, there is a chance of establishing cosmopolitan medical cooperation in the struggle against viruses by passing from national biopolitics and national structures of sustainable development to cosmopolitan (global concerted) counterparts. The conclusion is drawn that in order to realize this possibility, it is necessary to re-discover the existing visions of sustainable development while taking into consideration the common struggle of nations against epidemics. Full article
17 pages, 301 KiB  
Article
Does the Medium Matter? Linking Citizens’ Use of Communication Platform for Information about Urban Policies to Decision to Trust in Local Government
by Hyunkuk Lee
Sustainability 2021, 13(5), 2723; https://0-doi-org.brum.beds.ac.uk/10.3390/su13052723 - 03 Mar 2021
Cited by 3 | Viewed by 1846
Abstract
Information plays a formative role in citizens’ decision to trust their government. Given an increasingly diverse information environment, which is attributable to the diffusion of information and communication technologies (ICT)s, the Internet, and social media, we hypothesize that citizens’ use of a particular [...] Read more.
Information plays a formative role in citizens’ decision to trust their government. Given an increasingly diverse information environment, which is attributable to the diffusion of information and communication technologies (ICT)s, the Internet, and social media, we hypothesize that citizens’ use of a particular medium for information (online vs offline, and government source vs. non-government source) about their government plays an important and distinctive role in shaping citizens’ satisfaction with government information provision and trust in government. To address this central hypothesis, we analyze data from the 3068 citizen respondents. The findings of our study reveal that citizens’ use of the online medium for information about their government, such as information from local government web-media, lacks a strong relationship with their levels of satisfaction with government information provision and trust in government, while citizens’ use of different sources on the offline medium for information about their government, such as information from local government meeting or official gazette, is found to have a stronger association with citizens’ trust in government and satisfaction with government information provision. Full article
16 pages, 292 KiB  
Article
Environmental, Social, Governance Activities and Firm Performance: Evidence from China
by Lei Ruan and Heng Liu
Sustainability 2021, 13(2), 767; https://0-doi-org.brum.beds.ac.uk/10.3390/su13020767 - 14 Jan 2021
Cited by 67 | Viewed by 12353
Abstract
Increasingly noticeable environmental and risk problems have made more and more companies and regulatory agencies realize the importance of environmental, social, and governance (ESG) activities. However, on the question that whether ESG activities have promoted or reduced firm performance, there is still no [...] Read more.
Increasingly noticeable environmental and risk problems have made more and more companies and regulatory agencies realize the importance of environmental, social, and governance (ESG) activities. However, on the question that whether ESG activities have promoted or reduced firm performance, there is still no consensus. Especially for China, a representative country in emerging markets whose corporate ESG activities are still in their infancy and related systems and regulatory measures not complete, its theoretical and practical circles more urgently need to know an accurate answer to this question. Therefore, this article takes China’s Shanghai and Shenzhen A-share listed companies that have ESG rating data from 2015 to 2019 as samples and finds that corporate ESG activities have a significantly negative impact on firm performance. Further research finds that compared with state-owned enterprises and environmentally sensitive enterprises, non-state-owned enterprises and non-environmentally sensitive enterprises provide stronger evidence to support the above conclusions. Full article

Review

Jump to: Research

26 pages, 8588 KiB  
Review
Mapping the Research between Foreign Direct Investment and Environmental Concerns; Where Are We and Where to Go?
by Munther Al-Nimer, Salah Kayed, Rizwan Ullah, Najib Ullah Khan and Muhammad Sualeh Khattak
Sustainability 2022, 14(24), 16930; https://0-doi-org.brum.beds.ac.uk/10.3390/su142416930 - 16 Dec 2022
Cited by 1 | Viewed by 1678
Abstract
Research on the relationship between Foreign Direct Investment (FDI) and environmental concerns has been drastically growing, providing opportunities to conduct systematic and bibliometric overviews. Surprisingly, to date, there has been no bibliometric study on the relationship to analyze the large volume of data. [...] Read more.
Research on the relationship between Foreign Direct Investment (FDI) and environmental concerns has been drastically growing, providing opportunities to conduct systematic and bibliometric overviews. Surprisingly, to date, there has been no bibliometric study on the relationship to analyze the large volume of data. To fill the gap, we conducted a bibliometric study to address the statistical evaluation of the published studies and measure the role of the publications in the scientific community. We utilized the Scopus data from 2000–2021 and applied VOSviewer for co-citation and bibliographic coupling and SciMAT for conceptual structure and evaluation. In addition to the most influential authors, journals, and countries, we have discussed theoretical foundations and current research streams in the field of FDI and environmental concerns. We have discussed how research streams in the fields of FDI and environment transformed during 2000–2005, 2006–2010, 2011–2015, and 2016–2021. Concerning future research directions, we strongly recommend studying public policies and government incentives for environmental concerns. Consequently, we have also discussed several future research directions that can further strengthen the field. Full article
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