Business is an incredible social construct of the world, consisting of firms that are part of and arise from society. However, businesses have come under increasing scrutiny from internal and external stakeholders over sustainable business practices. A sustainable business model creates a balance between integrity, equity and financial prosperity, the so-called triple-bottom-line. Environmental, social and governance issues (ESG) have become the modern-day proxy for sustainable business practices. The relationship between sustainable business practices and corporate financial performance is a relatively new but prominent area of research in practice and academia in South Africa. This study explores the relationship between ESG disclosure performance and the corresponding corporate financial performance (CFP) for 70 sampled firms listed on the Johannesburg Stock Exchange (JSE) between the periods 2011 and 2019. In line with international and South African research, ESG in its composite and disaggregated form was considered against a select number of CFP metrics. Select accounting-, market- and qualitybased CFP metrics were considered. Quantitative research methods were employed, using panel regression models to investigate the ESG-CFP relationship where ESG was the independent variable while the CFP metrics were individually considered as the dependent variables. All CFP data was obtained from Bloomberg and Bloomberg's proprietary ESG scores were used. This study finds a statistically significant negative relationship between ESG and the selected CFP metrics. Upon disaggregating the ESG scores, it was evident that the E- and S-scores were also significantly and negatively related to the CFP metrics whilst the G-score was positively related to CFP, but it was not statistically significant. The empirical evidence suggests that over a nine-year investment horizon, higher ESG disclosure performance detracts from firm fundamental and market performance. Further interpretation of the results in conjunction with the literature may suggest that ESG ought to be seen as an insurance policy against excessive underperformance during volatile periods and not a CFP enhancer. Therefore, being “over-insured with ESG” may lead to underperformance.

The determinants that affect the financial performance of an insurance company are complicated due to the intangible nature of insurance products and the lack of transparency in the market. Consequently, the financial performance of insurance companies is important to various stakeholders such as policyholders, insurance intermediaries and policymakers. This study aims to investigate the determinants of financial performance of insurance companies based on their financial strength rating performance. The empirical data are drawn from A.M. Best Insurance Report Online: Non- US Database. The sample consists of 57 insurers in the United Kingdom over the period of 2006 to 2010. The analyses include eight firm-specific variables, which are leverage, profitability, liquidity, size, reinsurance, growth, type of business and organisational form. Rating transition matrices and regression models are employed in this study. Rating transition analysis demonstrates a significant degree of rating changes, as reflected in the rating fluctuations. Based on the empirical results, this study establishes that profitability, liquidity, size and organisational form are statistically significant determinants of financial performance of insurance companies in the United Kingdom. This study recommends an alternative to measure the size of an insurance company, which is based on the gross premium written. In addition, this study provides insights into the effects of the global financial crisis on the financial performance of the insurance companies. / Ministry of Education of Malaysia; Universiti Utara Malaysia

This study explores how sustainable investment, which includes social, economic,and environmental sustainability, affects financial performance in Pakistan'sbanking sector. The study evaluates financial performance using ROA, ROE, NIM,and EPS using secondary data from 26 public and private banks' consolidatedfinancial statements from 2013 through 2022. The STATA-based data analysis,which employed methods including Random effect, and fixed effect, paints acomplex picture of the contribution of sustainability to company performance.Panel regression result shows that environment scores have positive and significantinfluence on ROE, ROE and negative influence on EPS. Further, results show thatsocial scores have positive effect on ROE and EPS and negative effect on ROA.Similarly, governance scores have a positive effect on EPS and negative effect onROA and ROE. The findings have implications for various stakeholders, includinginvestors, regulators, managers, and other interested parties. By implementing ESGinvestments raise awareness. By doing so, the positive influence of ESG on bankperformance can be enhanced, as individuals who prioritize environmental andsocial factors are more likely to choose these banks for their services andinvestments. It is advisable for policymakers and regulators to offer increasedsupport to enhance stakeholder awareness and encourage companies to excel in theareas of environment, social responsibility, and effective governance.

Agricultural conservation practices can have a vast number of environmental benefits but adoption of these practices may not be widespread. If farm operators are able to reap financial returns for environmental services, adoption of these conservation practices could increase. One source of potential financial returns is in greenhouse gas (GHG) emission reductions or increased GHG sequestration. An example of a conservation management strategy for beef and dairy operations which has the potential to decrease GHG emissions or increase GHG sequestration is an intensively managed rotational grazing system. The objective of this study is to estimate potential financial returns from conversion to rotational grazing and the sale of GHG credits by Virginia beef and dairy farms. The three GHGs examined in the study are carbon dioxide, nitrous oxide, and methane. Primary and secondary data are used to simulate financial performance and GHG emissions for three case study farms under different levels of production and pasture utilization. Each case study farm is simulated under three reference conditions to calculate financial performance and three baseline scenarios and a regional performance standard to calculate GHG emissions on both a per farm and a per metric ton of product sold metric. The change in emissions between the scenarios is found and potential returns from the sale of GHG emissions credits are calculated. Results of the analysis demonstrate that conversion to rotational grazing has the potential to increase overall revenues for the farm operation from $4,197.72 to $50,007.46. GHG emission changes for the farm operation do not show a clear trend towards reduction. The amount of financial return from the sale of GHG reduction credits varies from $37.15 to $76.26 for the three case study farms for the initial calculations, and varies from $24.10 to $755.36 once the study performs sensitivity analysis for methane emissions. Therefore, results indicate that rotational grazing can increase net revenues for farm operations but additional net revenue from the sale of GHG reduction credits is small and dependent on the chosen baseline scenario and metric. Follow up research should address the following areas: changes in the cost of on-farm labor, risk of conversion to rotational grazing, increased accuracy of the measurement of GHG emissions and soil carbon, the effects of rotational grazing on forage TDN, and the water quality impacts of rotational grazing. / Master of Science

Yes / Following the recent financial crisis, Walker (2009) recommended that financial institutions should form a separate board level risk committee (RC) to manage various risks and prevent excessive risk taking. This research focuses on investigating how firms with separate risk committees differ from those that do not have one. The main research question we address is whether RCs have a fundamental influence on financial performance. We measure financial performance by ROA and ROE and we control for firm size, liquidity and gearing. Our sample consists of all listed financial institutions in FTSE-100 index from 2010 through 2014. Results indicate a negative relationship between risk committee characteristics (i.e., existence, size, independence, and meeting frequency) and financial performance. The results also indicate that firms without risk committee (RC) performed considerably well than firms with RC. The results are contradictory to Walker’s (2009) where RCs are recommended for their ability to mitigate and manage risks more expertly. However, we argue that establish strong RC constrain management ability to make excessive risk taking behaviour which may affect financial performance negatively. We contribute to the current research on the impact of risk committee governance attributes on financial performance after banking and governance reforms.

Yes / Despite the growing research on the influence of stakeholder integration on organizational outcomes, our understanding of the specific firm-level conditions that may mediate the relationship between stakeholder integration and financial performance is lacking. Using primary data gathered from 233 small and medium-sized enterprises in Ghana, we found empirical support for our contention that the link between stakeholder integration and financial performance is mediated by a firm’s environmental sustainability orientation. In addition, our study demonstrated that competitive intensity moderates the indirect relationship between stakeholder integration and financial performance in such a way that the indirect effect through environmental sustainability orientation is stronger for higher levels of industry competition. We discuss theoretical and managerial implications of these findings.

The topic around sustainability is something that has emerged as a vital pillar for companies all around the world. In the sense of measuring sustainability performance, ESG has become a worldwide used and accepted measurement tool for sustainability performance. The ESG score evaluates the company within three main pillars, Environmental, Social, and Governance. This Study will dissect the ESG into the three main pillars as this gives the possibility to analyze the impact of the three different pillars individually and not only the overall score. The passenger airline industry has had some issues over the years, and they are still existent. Environmental issues such as high greenhouse gas emissions and social issues such as poor working conditions. Therefore, this thesis will focus on the passenger airline industry and investigate how the individual ESG pillars affect financial performance. In this thesis financial performance was divided into two parts, market-based which was measured through Tobin’s Q and accounting-based which was measured through Return On Assets. In order to fulfill the purpose of this study, which were to investigate whether there is a connection between a listed airline’s separate environmental-, social-, and governance scores and its financial performance, six different regression analyses were made. The regressions were made on data from 50 listed passenger airlines during the time-period of 2016-2022. All six different regression analyses failed to find a significant relation between the individual ESG pillar and financial performance. This does not necessarily mean that there is no connection between the ESG pillars and financial performance, but in this thesis with the data we collected there was not enough evidence for a statistically significant connection. Because of the non-significant result, we could not provide additional evidence towards which of the theories, stakeholder theory or shareholder theory, being best suited for this industry.

The large environmental issues that are confronting modern society underscore that a critical shift is needed and there is an increasing demand for sustainable solutions to tackle these challenges. Agenda 2030 for sustainable development, outlined by the United Nations, encompasses 17 universal goals and 169 transformative targets that address the global challenges and emphasise the urgency of environmental degradation. In addressing the substantial environmental challenges, radical solutions are needed where eco-innovations will play a pivotal role. Eco-innovations are characterized by novelty and often new to the market, representing a risky and costly activity for companies. Managing environmental and financial performance becomes complex where addressing both goals simultaneously becomes conflicting.      To address the identified research gap the purpose of this study is to analyse how companies manage environmental and financial performance in eco-innovation, especially early in the innovation process. Conflicting perspectives and scattered research underscore the need for a nuanced understanding of how companies manage the tensions inherent in financial and environmental performance in eco-innovation. Paradox theory served as a theoretical lens to gain a deeper understanding of how companies manage the conflicting perspectives that can arise when balancing environmental and financial performance simultaneously. To address the research question and understand the complex interplay that organisations working with eco-innovation are facing, a qualitative method with an inductive approach was chosen. Semi-structured interviews were held with companies mainly working on reducing environmental impact through innovative activities.  The data collected from the semi-structured interviews were analysed through thematic analysis, it resulted in two main strategies that companies use to balance environmental and financial performance in eco-innovation: (1) Buying time through money (2) Future-proof customer demand which we interpret with the resolution strategy from paradox theory. The result indicated that companies that are buying time through money are facing a tension between saving the budget or saving the planet. The tension arises from the absence of strict regulations resulting in a market where demand is lacking and is not yet ready to embrace the radical eco-innovation. This time gap resulting in a lack of demand and our findings indicated that companies are handling this time gap by finding external resources until the market is ready which is coherent with a separation strategy from paradox theory.   The second strategy of future-proof customer demand indicates that companies are facing tension between being commercial or being sustainable. Companies are facing a mature market with price sensitive customers, suffering from fear of regulations and regulations that are not fit for purpose. The solution is to secure sales with an end-customer to reduce the financial uncertainty to be able to balance environmental and financial performance early in the innovation process before (if at all) the innovation starts generating profit. This aligns with a synthesis strategy from paradox theory.

Denna studie fokuserar på företagsstorleks inverkan på sambandet mellan Corporate Social Responsibility (CSR) och Corporate Financial Performance (CFP). Huvudsyftet är att mäta om effekten av CSR på CFP skiljer sig mellan små och stora företag noterade på Nasdaq OMX Nordic Stockholm. Perioden som studeras är åren 2006-2009 samt år 2011. För att utröna om företagsstorlek har inverkan på sambandet tillämpas modererande regressionsanalys som går ut på att fastställa huruvida någon interaktionseffekt förekommer eller ej. Vi kontrollerar även för variablerna bransch och tid. Efter exkluderingar och bortfall består urvalet av 286 företag listade på Small-Cap, Mid-Cap och Large-Cap under den studerade tidsperioden. Resultaten visar att företagsstorlek påverkar sambandet mellan CSR och CFP, även om det är oklart på vilket sätt. Olika mått på CFP påvisar skilda riktningar av interaktionseffekten. / This study focuses on the interaction effect of firm-size on the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP). The main purpose is to determine if the effect of CSR on CFP differ between small and large firms listed on Nasdaq OMX Nordic Stockholm. The studied period is the years between 2006 and 2009 plus 2011. In order to investigate if firm-size moderates the relationship between CSR and CFP, we apply moderated regression analysis which is used to determine whether or not an interaction effect is present. We also control for other variables such as industry and time. We consider a final sample of 286 firms listed on Small-Cap, Mid-Cap and Large-Cap during the observed time period. The results show that firm-size does have an interaction effect on the relationship between CSR and CFP, even though it is not clear in which way. Diverse measurements of CFP yield different direction of the interaction effect.

Corporate sustainability confronts significant challenges when supply chain managers pursue short-term financial performance to meet stakeholders' expectations. To achieve sustainable economic success, organizational managers need to understand the relationship between corporate sustainability and long-term financial performance. Based on the resource dependence theory, the purpose of this correlational study was to examine the relationship between sustainable supply chain management (SCM), stakeholder pressure, and corporate sustainability performance. The population consisted of worldwide public organizations from Newsweek Global Green Ranking 2016 list engaged in sustainable SCM. The secondary data for the study were collected from databases hosted by Sustainalytics and Standard & Poor's. The hierarchical multiple regression analyses indicated statistically significant relationships between sustainable SCM and corporate sustainability performance, F(5, 158) = 3,981, p = .002, R2[.112], and between stakeholder pressure and corporate sustainability performance, F(5, 158) = 2,552 p = .030, R2[.075]. Analysis of the relationship between sustainable SCM and corporate sustainability performance with stakeholder pressure as a moderator showed non-significant interaction effect, F (5, 158) = 5.54, p < .001, R2 =.11. R2 -chng =.0007, p-int = .669. With stakeholder pressure as a mediator, the relationship showed non-significant indirect effect, b = .024, z = 0.97, p = .329. The findings of this study could contribute to the social change given that sustainable development of supply chains support the conservation of natural resources and living standards of stakeholders.