The effect of sustainability reporting on financial performance: An empirical study using listed companies

Purpose - This study investigates the effect sustainability reporting has on companies’ financial performance. Sustainability reports are voluntarily released by companies that provide additional information to the stakeholders regarding the impact their activities have on the environment and society. Design/Methodology/Approach: This empirical paper analyses and identifies overlaps, gaps, limitations and flaws in current constructs of sustainability reporting. Using event study method to estimate abnormal returns for a 31 day event window for a sample of 68 listed companies, 17 listed in New Zealand Stock Exchange (NZX) and 51 listed in the Australian Stock exchange (ASX). Findings: Results of the empirical study indicate that sustainability reporting is statistically significant in explaining abnormal returns for the Australian companies. The cross-sectional analysis results of the combined dataset for the two countries support the view that the contextual factors of industry type significantly impacts abnormal returns of the reporting companies. In this regard, this study identifies several contextual factors, such as industry and type of sustainability report, that have the potential to impact the relationship. Only the CSR type of sustainability report was significant in explaining the abnormal return of New Zealand companies. Practical implications: To underscore the practical implications of the theory, it shows, by reference to the model, how sustainability reporting influences financial performance for companies engaged in industries that have environmental implications. However, the simplistic model may also have many other applications in management and the social sciences. Originality value: The proposed model is highly original in providing a framework for studying the impact of sustainability reporting in companies that have an environmental impact

Global Stock Markets Development and Integration: with Special Reference to BRIC Countries

In a country like India where the stock market is undergoing significant transformation with liberalization measures, and the analysis of the nature of integration with other developed and emerging markets would not only give an idea of the possible gains to be reaped out of portfolio diversification from Indian market, but may also provide some indication of the vulnerability of the country’s stock market in case of a regional financial crisis and consequent reversal of capital flows from the region. In the context the study examined the integration of the stock market among the BRIC (Brazil, Russia, India and China) economies in general and their integration with the developed countries stock markets such as US, UK and Japan, which can be analyzed by using the Granger causality, Johansen co integration and Error correction Mechanism methodology, based on daily data for the period January1998- Aug 2009. The results of co integration shows co integration relationship found between BRIC countries and Developed countries namely USA, UK and Japan. The results of Error correction model reveal that Sensex, Nikki225, moscowtimes, FTSE 100, and Bovespa are significant. It implies that these markets share the forces of short run adjustment to long run equilibrium.Stock Market integration, Johansen Julius co integration test, ECM, Engel Granger Casualty test, emerging countries, developed countries

Corporate governance practices in Fiji: An empirical investigation

This study investigates the nature and extent of compliance to the principle-based corporate governance initiatives by the listed companies in the South Pacific Stock Exchange (SPSE) in Fiji. Three important questions are addressed: (i) whether listed companies in Fiji have complied with the principle-based governance practices: (ii) did compliance with principle based recommendations lead to an improvement in the listed company‟s financial performance? and (iii) how the institutional factors have contributed towards corporate governance practices in Fiji? Panel data for the SPSE companies over the period 2008-2010 are analysed using ordinary least squares (OLS) regression. Tobin‟s Q, Return on Assets (ROA), Return on Equity (ROE) and Earnings Before Interest, Tax, Depreciation and Amortisation to Total Revenue (EBITDA2REV) metrics are used as dependent variables. Findings indicate that listed companies have adopted the Capital Market Development Authority‟s (CMDA) recommendations, establishing subcommittees for audit and remuneration, and having nonexecutive/ independent directors on the board. The result supports the view that the CMDA recommendations of board sub-committees (Audit and Remuneration) have had positive influence on company performance measured by Tobin‟s Q. The findings of this study give support to the principle-based corporate governance practices adopted in Fiji. The results of this study provide useful insights to both regulators and policy analysts (in Fiji and internationally) seeking to enhance both governance and firm performance in their own jurisdiction

Corporate governance – Performance relationship in microfinance institutions (MFIs)

The relationship between governance and the performance of microfinance institutions (MFIs) is discussed in this paper. MFI performance encompasses both financial performance and outreach. Good governance in terms of strengthening stewardship, achievement of MFIs’ primary objectives and promoting further development of the industry have been asserted as key elements in the literature pertaining to MFI performance. Similarly, several cases concerning poor governance have been analysed. Good corporate governance has become more important due to the demand for transparency and accountability of funds utilised in microfinance activities. Further, MFIs need to have a solid governance framework to minimise the possibilities of management failures which may jeopardise the efficacious application of received funds from governments and donors. In prior studies, the nature of corporate governance practised by MFIs is less understood and no substantive work using multiple MFI outcomes over a number of years has been undertaken. The concerns raised in reviews of individual MFIs and normative discussions of what should constitute best practice do point to the need for better understanding of the nature of corporate governance practised by the MFIs and also, to understand the nature of the relationship that exists between institutional success and corporate governance especially for developing countries. This study therefore identifies and provides a framework for undertaking corporate governance research relating to MFIs

Modelling Of Cell Suspention During Cryopreservation.

In the present study, One-dimensional numerical model for cryopreservation is developed to design a mathematicalmodel that allows prediction of the transient temperature and solute concentration distributions and corresponding cell responses at any location (in the solidified,mushy, and liquid regions) in a cell suspension during cooling processes. The continuummodel for binary component phase change systemis considered for simulating the freezing process of binary solution(H2O−NaCl ). The formalism is extended to the freezing of a cell solution. An implicit scheme for coupling temperature and concentration fields in solidificationmodel is employed. Mathematical predictions of the un-steady state temperature profile,mushy region and eutectic composition are obtained and then using the temperature and salt concentration data, the kinetics of water loss and survivability of model cell are predicted. The equine sperms is modeled as a cylinder of length 36.5ìm and radius of 0.66ìm with an osmotically inactive cell volume (Vb) of 0.6V0, where V0 is the isotonic cell volume. The volumetric shrinkage during freezing of equine sperm suspentions at holding temperature between −200C and −500C in the absence of cryoprotective agents (CPAs) for differnt initial solute concentrations of 5%and 10%is predicted. The percentage of viable equine sperm was 13% and 8% at holding temperature of −380C and −250C for initial solute concentraion of 5%and 10%respectively. Spermviability is found to be almost constant between −250C and −400C for an initial solute concentration of 10%

Do Golden Parachutes increase CEO’s DESIRE to be taken over? empirical evidence from australia and united states

This study investigates whether the large payouts that are available to Chief Executive Officers (CEOs) from a change in corporate control (takeover) do motivate some CEOs to seek acquisition of their firms by making them more attractive to a takeover bid. Using Australian and the US data, employing OLS regression, we report that there is a significant relationship between a CEOs change in control payments and their firm’s net cash levels (one of the key factors of takeover attractiveness). Our empirical results also indicate that CEOs desire their firms to be acquired by decreasing shareholders’ equity, thus supporting the view that change in control payments exist primarily for incumbent managers. Our findings provide support to the proposition that managers enjoy having large cash balances to be available to them as it allows them with greater opportunities to derive personal benefit from it. Therefore, our findings suggest that managers prefer to have large cash balances available to them to ensure their future wellbeing by setting up favourable terms in the control agreements

The Relationship Between Corporate Governance Practices and Financial Performance in New Zealand: An Empirical Investigation

Corporate Governance is the set of structures and behaviours by which a company or other business entity is directed and managed (New Zealand Securities Commission, 2003). The structures and behaviours guide how the entity sets objectives, develops strategies and business plans, monitors and reports on performance, and manages risks. They also guide how directors and managers meet all expectations and that they are responsible and accountable in their respective roles. In 2004 the New Zealand Securities Commission (NZSC) adopted a principle-based corporate governance approach which was intended to contribute to high standards of corporate governance in New Zealand entities. The principles/guidelines are broad statement generally applied to the governance of entities that have economic impact in New Zealand or are accountable, in various ways, to the public. The economic entities are required to observe the principles/guidelines to the fullest extent that they reasonably can and depart only where they are subject to competing statutory or public policy requirements (NZSC, 2004). This thesis investigates the effect principle-based corporate governance practices have on the financial performance of publicly listed companies and public corporate entities in New Zealand. The adoption of the principle-based approach was to encourage entities to develop governance structures that are specific to their context. Therefore, this research examines: (i) whether the NZSC recommendations have encouraged institutions to develop entity and/or industry specific governance structures; and (ii) whether the differences in governance practices at entity and industry level contribute to the differences in the financial performance. Prior studies have examined governance practices of larger corporations in large economies. The governance practices of companies in smaller economies have received little attention. This research extends the understanding of responses to smaller entities, both private and public sector, in a small open economy with a mature capital market. The focus of this thesis is on the governance variables that have been highlighted by the NZSC in 2004 and also other governance variables that are supported in the literature as providing an appropriate structure for the institutions in the environment in which it operates. Data for the small and large capitalisation (cap) companies were obtained from the New Zealand Stock Exchange (NZX) Deep Archive. The data for the small cap companies covered the period 1999 to 2006 and for large cap companies the sampling period was from 1999 to 2007. For public sector corporate entities, data were obtained from their respective annual reports for the period 2000 to 2007. Pooled data were analysed using ordinary least squares (OLS) regression and two stages least squares (2SLS) regression techniques to evaluate: (i) whether entities have complied with the NZSC recommendations; (ii) whether those entities that were continuously compliant with the NZSC recommendations have superior financial performance; (iii) the entities’ financial performance post-NZSC recommendations is better than pre-NZSC recommendations; and (iv) the difference in governance practices in different entities and industries and the effect they have on company financial performance. The findings indicate that small cap and large cap companies and public sector corporate entities have universally adopted the Securities Commission recommendations. Results for the large cap companies show that compliance with NZSC recommendations had a positive effect on financial performance, but empirical results show that compliance with NZSC recommendations has had a negative effect on the financial performance of small cap companies and public sector corporate entities. There is also evidence that governance practices in certain industries have contributed towards the differences in entities’ financial performance. This suggests that a principle-based governance approach led to the development of industry-specific governance structures in large cap companies and State-Owned Enterprises (SOEs) as intended. However, the evidence for the small cap companies is specific to the finance/investment sector. As a result of this study, the relationship between ‘soft regulations’ and entities’ financial performance is better understood, and in terms of public/regulatory requirements, the issues associated with compliance cost burdens are better informed. This study offers insights for policy makers around the world who have adopted principle-based approaches and to those jurisdictions that are interested in adopting similar governance approaches in the future

Evaluation of Biochar as a Potential Filter Media for the Removal of Mixed Contaminants from Urban Stormwater Runoff

Krishna Reddy - Professor at the University of Illinois at Chicago. Urban stormwater runoff can carry a wide range of contaminants, many of which exceed federal maximum contaminant levels, into surface water resources (e.g., rivers and lakes). The use of filtration systems has received greater attention for its potential to remove particulate matter and other contaminants. Biochar is expected to have excellent potential as an adsorbent or filter given its large surface area and micro-porous structure. This study evaluated the potential use of biochar as a filter media through a series of column experiments. A column with an inner diameter of 2.75 in. (7 cm) and a length of 24 in. (61 cm) using biochar as filter media was constructed to examine its effectiveness for the removal of mixed contaminants (total suspended solids [TSS], nutrients, heavy metals, PAHs, and E. coli) from synthetic stormwater. Results demonstrated that this filter reduced the TSS in the stormwater effluent by an average of 86% and the concentrations of nitrate and phosphate by 86 and 47%, respectively. After filtration, the concentration of Cd, Cr, Cu, Pb, Ni, and Zn (heavy metals) decreased by 18, 19, 65, 75, 17 and 24%, respectively. The variation can be explained in terms of the chemical behavior of the different heavy metals as well as the properties of the biochar. Among the three polycyclic aromatic hydrocarbons (PAHs) tested, biochar successfully removed phenanthrene (almost 100% removal efficiency) and achieved 76% removal efficiency for naphthalene, but resulted no removal of benzo(a)pyrene, with the average removal for the three PAHs was 68%. Biochar was not efficient in removing E. coli from stormwater; and the concentration of almost 7,400 MPN/100mL in inflow was reduced to around 5,000 MPN/100mL in the outflow, representing a mean removal efficiency of 27%. Overall, the biochar used in this study showed promise to be an effective filter media for the removal of selected contaminants from urban stormwater runoff. However, additional research should be conducted using different types of biochars, produced from different feedstock and production conditions, to determine the most effective biochar that can simultaneously remove multiple contaminants from urban stormwater.Ope

Effect of Different Dates of Dry Seeding and Staggered Nursery Sowing on Growth and Yield of Kharif Rice

A field experiment was conducted to study the effect of different dates of dry seeding and staggered nursery sowing on growth and yield of Kharif rice. The experiment was based on the difficulties faced by the farmers in the coastal areas of Andhra Pradesh and those who depend on canal irrigation and are located at the tail end areas. The experimental results have showed no difference among the methods of stand establishment in terms of yield. However, among the dates of sowing the delay in sowing beyond 30th July significantly reduced the grain yield and returns per rupee invested. It has been concluded that the rice crop may be established either by direct seeding or by transplanting nurseries but the sowing of the respective cultures should be done by the end of July for obtaining maximum yield and profits