Jul 2026· Symphonya Emerging Issues in Management· 0 citations
Abstract
This paper focuses on the role of embedded corporate governance in the integration of environmental, social and governance (ESG) and firm profitability in emerging markets. The study adopts an explanatory sequential mixed-methods design comprising panel regression analysis of governance and financial indicators for the period 2014-2024, and qualitative analysis of ESG disclosures based on ISO IWA 48:2024, based on evidence from the listed agri-food sector in Zambia. Baseline governance models showed weak relationships with profitability across the panel estimators. Although governance did not demonstrate a statistically significant direct association with short-term accounting profitability, the qualitative findings consistently showed that governance strengthens accountability, stakeholder trust, organisational resilience and ESG integration. These findings support an embedded governance perspective in which governance contributes to sustainable competitiveness primarily through organisational capability rather than immediate financial gains. The results have managerial and policy implications for improving sustainable competitiveness in resource constrained and institutionally fragile settings.
Sustainable development is increasingly reshaping corporate strategies, particularly in emerging markets such as India, where environmental, social, and governance (ESG) integration has become pivotal for long‐term value creation. This study examines the impact of ESG performance on firm outcomes for Nifty 500 firms over 2014–2024, considering both aggregated and disaggregated ESG dimensions, while assessing the influence of country‐level governance mechanisms. Using panel regression analysis, the findings reveal that robust ESG practices significantly enhance financial, operational, and market performance, underscoring their strategic relevance. At the disaggregated level, social (SOC) and governance (GOV) performance consistently improve profitability, efficiency, and market valuation, whereas environmental (ENV) initiatives exhibit short‐term negative effects, likely due to compliance and investment costs. Further, country governance indicators, including voice and accountability (VAA), political stability and absence of violence (PSV), government effectiveness (GVE), regulatory quality (REQ), rule of law (ROL), and control of corruption (COC), differentially shape the ESG–performance link. While VAA, PSV, REQ, and GVE enhance ESG's impact, ROL and COC constrain immediate gains, highlighting the role of governance quality in aligning ESG initiatives with firm‐level outcomes. The study provides critical insights for regulators, policymakers, investors, and corporate managers, emphasizing governance as a key enabler of sustainable growth in an emerging market.
Rizwana Khurshid, A. Islam· Business Strategy & Deve...· 0 citations
Corporate sustainability has become an essential element of corporate governance, requiring firms to integrate environmental, social, and governance (ESG) considerations into strategic decision-making and enterprise risk management. Although prior studies have widely examined ESG disclosure and sustainability reporting, limited attention has been given to how sustainability-related risks are embedded within governance and risk management processes. Evidence regarding the moderating role of ownership structure in this relationship also remains inconclusive, particularly in emerging markets. This study investigates the effect of Governance-Based Sustainability Risk Integration (GBSRI) on firm value and examines whether ownership structure moderates this relationship. A quantitative explanatory approach was employed using balanced panel data comprising 75 firm-year observations from 15 Indonesian listed companies operating in high-risk industries during 2020–2024. The GBSRI Index integrates the COSO ERM Framework, GRI Standards, and IFRS S1 and S2 into a governance-oriented framework with seven dimensions and 30 indicators. Using MRA with pooled OLS, the study finds that GBSRI has no significant effect on firm value, and ownership structure does not moderate this relationship. Nevertheless, the GBSRI Index contributes to sustainability accounting by offering a comprehensive framework for assessing sustainability risk integration into corporate governance and enterprise risk management, particularly in high-risk industries.
Alfistia Maradidya, Indah Kartika Sandhi, ReseachGate Garuda et al.· Stability: Journal of Manage...· 0 citations
This study examines how corporate governance and sustainability mechanisms are associated with firm performance in the European food industry, focusing on whether their effects differ across performance dimensions. Using a panel of 602 publicly listed firms from 2014 to 2024 and a dynamic System Generalized Method of Moments (system GMM) approach, the results show that governance mechanisms generate systematic trade‐offs across performance measures. ESG engagement and ISO certifications are negatively associated with operational efficiency, while ISO certifications are positively associated with shareholder profitability. Board‐related governance mechanisms also show heterogeneous effects across ROE, EBITDA margin and PTB. This pattern reflects a governance paradox: practices that strengthen legitimacy, credibility or oversight may also generate coordination, implementation and compliance costs. In contrast, board meeting attendance is the only mechanism consistently associated with improvements in both profitability and operational performance. Overall, governance outcomes vary across performance measures and stakeholders. By analysing multiple governance mechanisms across accounting‐based, operational and market‐based indicators, the study helps explain why prior research reports mixed results. It also contributes to ongoing debates in business ethics by showing that governance and sustainability practices involve trade‐offs rather than uniform benefits. The results suggest that these mechanisms should be assessed across different performance dimensions, rather than through a single metric.
M. E. Neves, Rosana Marlene Rosário Vieira, Rui Guedes et al.· Business Ethics, the Environ...· 0 citations
This study examines whether environmental, social, and governance (ESG) practices enhance corporate profitability and firm value by reviewing empirical evidence from previous studies. Using a systematic literature review guided by a PRISMA approach, peer-reviewed articles published between 2010 and 2025 and indexed in Scopus and Web of Science were analyzed. The findings indicate that firms adopting ESG practices generally achieve stronger financial performance and higher market valuation, although the strength and direction of the relationship vary across contexts. Five key factors influence these outcomes: the credibility of ESG disclosure, the financial materiality of ESG issues within the industry, governance quality, environmental exposure, and the institutional maturity of the market. The review also highlights that inconsistencies among ESG rating agencies contribute to measurement differences, leading to mixed empirical findings. Drawing on stakeholder and legitimacy theories, the study suggests that effective ESG implementation reduces information asymmetry, lowers financing costs, strengthens corporate reputation, and increases investor confidence. An integrative framework is proposed to explain the relationship between ESG implementation and firm value while identifying future research opportunities, particularly in emerging economies such as Indonesia, where sustainable finance regulations continue to develop.
Agung Nugroho, Andini Nurwulandari, E. Hasanudin· International Journal of Eco...· 0 citations
The integration of sustainability initiatives into corporate strategy has become a strategic priority for firms seeking to achieve long-term competitiveness and value creation. However, the financial returns derived from sustainability initiatives remain inconsistent across different institutional and market contexts, particularly within emerging economies. Addressing this gap, the present study investigates how sustainability initiatives influence the strategic financial outcomes of consumer-facing firms operating in India. Specifically, the study examines the direct effects of environmental, social, and governance (ESG) practices on firms' financial outcomes while assessing the mediating roles of perceived market advantage and perceived operational advantage. Primary data were collected from 250 managerial respondents representing consumer-facing firms across the Delhi National Capital Region (NCR), India. The proposed research framework was empirically tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that sustainability initiatives significantly enhance firms' strategic financial outcomes; however, these effects are largely transmitted through perceived market and operational advantages. The results indicate that sustainability practices create financial value by strengthening corporate reputation, improving customer preference, enhancing supply chain resilience, increasing regulatory preparedness, and promoting operational efficiency rather than through direct financial gains alone. The study contributes to the corporate sustainability literature by providing empirical evidence from an emerging economy and by explaining the organizational mechanisms through which sustainability initiatives translate into superior financial performance. The findings also offer important managerial implications by demonstrating that firms should view sustainability as a strategic capability that generates competitive advantage and long-term financial value through enhanced market positioning and operational excellence.
Rayan Vaghani· International Journal of Dru...· 0 citations
Corporate sustainability reporting is widely promoted to enhance transparency and track global sustainability goals, yet its adoption remains highly uneven across nations. Prior research focuses on firm‐level drivers or aggregated institutional quality, overlooking the distinct role of financial regulators. Drawing on neo‐institutional theory and institutional substitution, this study examines how national financial sector governance influences the adoption of sustainability reporting standards. Using a balanced panel of 139 countries (2011–2023), we employ fixed‐effects, dynamic panel and instrumental variable regressions, complemented by income and regional heterogeneity analyses. The results reveal a statistically significant positive relationship between financial sector governance and sustainability reporting adoption. The effect is strongest in low‐income economies and sub‐Saharan Africa, where financial regulators compensate for weak environmental oversight. In high‐income contexts and Latin America, broad regulatory quality supplants specialised financial governance as the primary transparency driver. IFRS adoption and state ownership show limited direct influence. These findings position financial sector governance as a practical institutional substitute for underdeveloped regulatory systems. Policymakers can leverage existing financial oversight to accelerate sustainability reporting, particularly in resource‐constrained settings. The study advances institutional theory by differentiating financial regulatory capacity from general state capacity and offers a scalable pathway toward global transparency objectives.
M. W. Blay, James Tuffour, Bismark Ackah· Corporate Social Responsibil...· 0 citations