SACM - United Kingdom
Permanent URI for this collectionhttps://drepo.sdl.edu.sa/handle/20.500.14154/9667
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Item Restricted Measuring the Variability of ESG: Implications for CSR and Corporate Financial Performance(University of East Anglia, 2024) Aljamaan, Bader; Markellos, RaphaelThis study develops four measures of variability to quantify a firm’s social responsibility performance over time, addressing a significant gap in the literature. Applying these measures on both the overall CSR performance scores, as proxied by ESG scores, and the variability of workforce performance, as scores proxied by workforce scores. While prior studies have extensively examined the impact of the overall CSR performance on corporate financial performance, there is a lack of empirical studies quantifying a firm’s social responsibility performance variability over time and its implications for financial outcomes. Therefore, this study fills this gap by proposing four measures to assess the variability of a firm’s social responsibility performance using ESG scores, and workforce scores and empirically examining their impacts on corporate financial performance. This research seeks to answer two key questions: Does stability in CSR performance improve corporate financial performance? And Does stability in workforce performance enhance corporate financial performance? Using a sample of 379 publicly traded U.S. firms from 2004 to 2022, this study evaluates CSR and workforce performance stability over time through annual ESG scores and workforce scores produced by LSEG (formerly known as Refinitiv, and before that was known as ASSETS4). ESG scores measure a company’s environmental, social, and governance performance, while workforce dimension of social pillar captures how well a firm promotes diversity and inclusion, career development and training, working conditions, and health and safety (Refinitiv, 2021). The study is structured in three parts. First, it develops four measures of stability: (1) coefficients of variation, (2) Beta, (3) temporal trend, and (4) residuals. Second, it applies these measures of a firm’s overall CSR performance using ESG scores, as well as workforce-specific performance using workforce scores. Third, it analyses the relationship between these stability measures and corporate financial performance. The findings reveal that less variability in CSR performance measured by coefficients of variation of ESG (ESGCV) leads to improved firm profitability (ROA). Additionally, Tobin’s q shows significant associations with two stability measures beta of ESG (ESGBETA), a negative impact, indicating that less deviation of CSR performance compared to the market overall CSR performance is rewarded with higher firm value, and CSR temporal trend (ESGTREND), a positive effect, suggesting that improving CSR performance over time in alignment with market trends enhance firm value. However, variability measures do not significantly impact stock returns as one of the corporate financial indicators. Regarding workforce stability performance and its impact of corporate financial performance, the results demonstrate a more pronounced impact on financial performance compared to CSR stability. Higher workforce variability measured by workforce scores coefficient of variation (WFCV) negatively affects both ROA and Tobin’s q, while improving workforce performance over time measured by temporal trend (WFTREND) is associated with marginally higher profitability. Notably, not all stability measures show significant relationships, suggesting that the link between CSR consistency and financial performance may be complex, potentially due to data limitations, measurement challenges or the multifaceted nature of financial performance metrics. Overall, the findings underscore the strategic importance of CSR as a long-term investment, emphasizing the need for continuity and consistency in CSR efforts, particularly in workforce-related initiatives. Firms that sustain or improve CSR performance over time are better positioned to ensure stakeholder satisfaction and secure a sustainable competitive advantage. This study contributes to the literature by introducing new measures of social responsibility stability performance and positioning CSR consistency as a strategic asset. By capturing the variability in both overall CSR and workforce performance, this study highlights the importance of integrating CSR efforts into business operations, with more emphasis on workforce performance as a key component of CSR dimensions. Integrating CSR into organisational strategies has become crucial, reflecting a commitment to ethical behaviour and sustainable efforts. By analysing the stability of CSR performance as a strategic aspect, this study reinforces the view that continuity in CSR efforts, as shown in workforce and overall ESG performance, not only enhances financial performance, but also aligns with the argument that emphasises mutual trust between a firm and its stakeholders. This study therefore provides evidence to support policymakers and managers in prioritising workforce stability as part of CSR, so as to maintain financial performance and generate benefits in the long term.18 0Item Restricted Governance and Asset Allocation Strategies in the Investment Mutual Funds(Univeresity of Strathclyde, 2024-12) Alsubaie, Aseel; Moore, JedThis research examines the role of governance in asset allocation and portfolio management within the investment mutual fund sector. Modern governance frameworks, influenced by technological advances, ESG requirements, and market volatility, integrate risk management, sustainability, and operational efficiency. The study evaluates how governance structures incorporate ESG criteria, manage technology risks, and ensure resilience during market shifts. Findings suggest that funds with strong governance achieve balanced, risk-averse allocations through diversification and ESG integration. Additionally, AI and ML require governance adjustments to manage related risks. The study emphasizes the need for flexible governance frameworks to address future challenges in an evolving market landscape.26 0Item Restricted The Impact of Environmental, Social, and Governance (ESG) Factors on Firm Financial Performance: An Empirical Study of Non-Financial Constituents of the S&P 500(University of Liverpool, 2024-09) Fallatah, Ahmed Zaki; Giorgioni, GianluigiAbstract This study empirically examines the influence of Environmental, Social, and Governance (ESG) factors on financial performance of non-financial firms listed on the S&P 500. It analyzes data for 425 firms over the period from 2010 to 2023. This research study apply panel data analysis using Generalized Least Squares (GLS) Regression and reveals a significant and positive relationship between overall ESG scores and Corporate financial performance metrics, Return on Equity, Return on Assets and Tobin's Q for current S&P 500 firms. For the firms that were removed from the index, while ESG scores significantly enhance Tobin's Q in terms of market evaluation and their impact on financial measurement is less pronounced. The analysis highlights that environmental scores influence financial outcomes across both current and dropped firms. Social scores positively affect financial performance in current firms but show limited impact for firms removed from the index. Governance scores appear to have a more nuanced impact, suggesting that good governance alone may not be enough to differentiate performance among firms. The study shows the importance of robust ESG practices, particularly in environmental and social pillars, for enhancing corporate financial success and market valuation. The firm’s market position and financial health may influence the relationship between ESG factors and immediate financial returns. The research shows that ESG investments can boost a market position of company and resilience and their direct impact on immediate financial returns can vary depending on the company’s financial health and market status. Therefore, this study reveals the complex relationship between ESG practices and financial performance. The findings provide useful valuable insights for business leaders, investors, and policymakers looking to align ESG practices with financial goals and foster sustainable, long-term growth.44 0Item Restricted What Do Investors Care About in Cryptocurrency Markets? Evidence from ESG Ratings and NFTs(University of East Anglia, 2024-09) Alsultan, Sarah Abdulrahman; Markellos, Raphael; Kourtis, ApostolosWhile cryptocurrencies have seen limited adoption as a medium of exchange, they have been recognised as a new class of investment assets. A broader range of investors, including institutional investors, has shown growing interest in cryptocurrency and digital assets. Therefore, this thesis contributes to the literature by thoroughly examining digital technologies as investment assets through three empirical studies. The first study explores whether investors prefer blockchains with strong Environmental, Social, and Governance (ESG), using a novel dataset of blockchain ESG scores. The findings reveal a time-varying preference for high-ESG blockchains. The top-rated blockchains outperform lower-rated ones during favourable market conditions and optimistic market sentiment but underperform during times of negative sentiment. Our findings also indicate that high-ESG blockchains exhibit higher market volatility. Furthermore, governance and environmental factors have the strongest influence on investor preferences among the three ESG dimensions. The second study examines NFTs as a relatively new asset class that is not yet fully understood, particularly in terms of risk modelling. It evaluates and compares the forecasting performance of various GARCH models in estimating NFT market volatility across different time horizons. The selected models include GARCH(1,1), IGARCH(1,1), EGARCH(1,1), GJR- GARCH(1,1), and TGARCH(1,1). The dataset comprises three major NFT categories, six NFT token platforms, and major cryptocurrencies, including Bitcoin and Ethereum. Empirical evidence shows that different models perform better depending on the asset type and forecast horizon. The findings highlight the highly volatile nature of NFT markets. The third study assesses the impact of visual attractiveness on NFT market prices. Prior art literature has demonstrated the role of aesthetics in influencing art prices. Given the similarities between NFTs and traditional art, this study investigates whether aesthetics similarly impact NFT prices. The empirical analysis focuses on one of the largest NFT collections, CryptoPunks, by applying a hedonic pricing model. We employ quantitative aesthetic measures to capture aspects of NFT art, including colourfulness, brightness, colour intensity, and texture. Our results reveal a significant impact of visual aesthetics on determining NFT prices. The results indicate that more colourful and visually complex NFTs are associated with higher prices, while brighter and more saturated NFTs are associated with lower prices.22 0Item Restricted A QUANTITATIVE ANALYSIS OF ESG PERFORMANCE AND ITS EFFECTS ON FINANCIAL PERFORMANCE(Saudi Digital Library, 2023-09-02) Bineid, Waleed Mohamed A; Goncharenko, GalinaRecently, the Environmental, Social, and Governance (ESG) goals are becoming a primary focus for companies worldwide. Studies have found positive and negative relationships between good ESG performance and the company’s financial performance. Hence, this research aims to explore the relationship between ESG and financial performance and find which balance sheet element has the most significant relationship with ESG performance. From a ranked list of 100 global companies, 46 firms had complete financial data for three years (from 2020 to 2022) and were eligible to be included in analysis. Using each company’s ESG rating and financial data, two statistical tests were performed to determine the relationship between ESG rating and financial performance. Although one significant relationship was found, both tests have shown weak positive and negative relationships. The hypothesis that ESG ranking will have a significant positive relationship with at least two of the five indicators used: net profits and operating revenue was not proven by the findings of this study.51 0Item Restricted An Empirical Investigation into the Impact of Environmental, Social, and Governance (ESG) Reporting on Firm Value: A Cross-Sector Analysis.(Saudi Digital Library, 2023-11-23) Alturayeif, Rawan; Harakeh, MostafaThis study investigates the correlation between Environmental, Social, and Governance (ESG) scores and firm value across major sectors in the United States, including energy, technology, healthcare, and consumer staples staples during the period from 2012 to 2022. The study employs Tobin's Q as proxy for firm value. Preliminary descriptive analysis provides valuable insights into sector-specific ESG adherence, while regression analyses substantiate a positive association between ESG scores and firm value. Interestingly, while environmental and governance components of ESG significantly influence firm value, social components yield an insignificant impact, possibly due to strict U.S. regulations. Sector-specific analysis reveals distinct dynamics, with the healthcare and energy sectors showcasing unique and noteworthy ESG-firm value relationships. By further disaggregating ESG effects and introducing an alternative dependent variable for robustness, this research underscores the strategic importance of ESG practices, suggesting the need for a tailored approach to enhance sustainable corporate value.71 0Item Restricted A Comprehensive Case Study on ESG Integration and Analysis for Sustainable Commercial Banks in the United Kingdom(Saudi Digital Library, 2023-03-18) Alnabood, Ali; Hayward, RobertCommercial banks in the United Kingdom strive to operate sustainably and satisfy the demands of their stakeholders, which has increased the importance of environmental, social, and governance (ESG) factors. This comprehensive case study employs a mixed-methods approach that discusses analysing and integrating ESG elements for sustainable commercial banks in the UK. The study commences with a comprehensive examination of current literature on integrating and analysing ESG factors in the banking sector. Subsequently, the literature review outcomes are employed to construct a conceptual framework for integrating and analysing ESG factors customised to the commercial banking industry in the UK. Next, the study uses publicly available data to analyse the ESG performance of the leading five commercial banks in the UK. The analysis includes assessing the banks' implementation of various ESG indicators, including carbon emissions, diversity and inclusion, and governance practices. Finally, the analysis results identify trends and best practices in ESG integration and analysis among UK commercial banks. The study results emphasise the significance of incorporating and evaluating ESG factors for promoting sustainability in commercial banks operating in the UK. The analysis results demonstrate notable disparities in ESG performance among commercial banks in the UK. Certain banks exhibit superior ESG performance compared to others, with statistically significant differences. The study's author has presented a series of suggestions for UK commercial banks seeking to enhance their ESG performance and incorporate ESG factors into their business practices based on the research results. The suggestions encompass the necessity for endorsement from upper-level management, the significance of thorough data gathering and evaluation, and the advantages of involving stakeholders to comprehend their ESG preferences. Overall, this thorough case study offers insightful information on the difficulties and possibilities of ESG integration and analysis for sustainable commercial banks in the UK. The study's mixed-methods methodology provides a comprehensive understanding of the subject. It also gives helpful advice for UK commercial banks aiming to enhance their ESG performance. Finally, the study's conclusions apply to banks and financial institutions worldwide, not only in the UK, as they work to operate sustainably and satisfy changing stakeholder expectations.34 0Item Restricted Essays on global corporate bank(2023-01) Saharti, Mohammed; Chuadhry, SajidSyndicated loans are an important source of external finance for a firm’s financing. In 2019, global syndicated loans volume was about 41% of the total funds raised from capital markets, the second-highest source of external finance after bonds. Over the first nine months of 2021, $4 trillionwasdisbursedthroughsyndicatedlending.1 Givenimportanceofsyndicatedloans,wetake a holistic approach and start this thesis with a citation-based comprehensive systematic literature review (SLR) of the syndicated loan market. Therefore, in this this we fill the knowledge gap by first surveying a comprehensive SLR. This helps us in highlighting some areas that need to be explored. Second we study the effect of bank mergers and acquisitions (M&As) on borrowers syndicate structure and the testing of bank–firm relationships. Finally, we explore the impact of environmental, social, and governance (ESG) factors on the cost of capital for firms and the structure of syndicate loans.23 0Item Restricted Would achieving ESG (Environment Social Governance) targets require increased collaboration between industries and potential adjustments to the EU competition law.(2023) Alharbi, Tahani; brok, OrThe key purpose of this dissertation is to analyse the rules of EU competition laws and their compatibility with the sustainability goals within the EU law framework. The dissertation will look at the EU Green Deal followed by the EU Sustainability Corporate Governance Rules. It will be argued that the current EU law needs to be revised to make it compatible with the aims of the European Green Deal. EU member states must comply with EU law as their primary law and the Commission is under an obligation by way of Article 11TFEU to comply with environmental issues in all its policies. If the EU competition law continues if competition law continues to interfere with urgent enterprises to tackle climate change, the Commission must clarify the law, or amend it within the scope of the treaties for instance by way of a block exception Therefore, the key objective of the thesis is to analyse whether and to what extent can the sustainability goals be reconciled with the competition law rules. This is because the achievement of sustainability goals requires collaboration between corporations and any collaboration may trigger the application of anti-competition laws. Therefore, the thesis will aim to answer the question of whether the current framework of the EU competition laws is consistent with the sustainability goals. This dissertation will argue that unless the Commission is prepared to make radical changes to competition law to make it suitable for the development of sustainable initiatives, the goals of the Commission will not be met, and this will affect not just the EU but also the entire world in respect of climate change.41 0