Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is This Different for SME Firms?

Article


Gholami, Amir, Murray, Peter A. and Sands, John. 2022. "Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is This Different for SME Firms?" Sustainability. 14 (10), pp. 1-21. https://doi.org/10.3390/su14106019
Article Title

Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is This Different for SME Firms?

ERA Journal ID41498
Article CategoryArticle
AuthorsGholami, Amir (Author), Murray, Peter A. (Author) and Sands, John (Author)
Journal TitleSustainability
Journal Citation14 (10), pp. 1-21
Article Number6019
Number of Pages21
Year2022
PublisherMDPI AG
Place of PublicationSwitzerland
ISSN2071-1050
Digital Object Identifier (DOI)https://doi.org/10.3390/su14106019
Web Address (URL)https://www.mdpi.com/2071-1050/14/10/6019
Abstract

This study examines the association between a firm’s environmental, social and governance (ESG) performance and financial performance by examining the extent to which stakeholder and legitimacy theory help explain the effects on explanatory variables used in the study. Moreover, the study makes a novel contribution to existing ESG and performance-based studies by exploring the explanatory effects of ESG and firm performance over ten years. In addition, the study discusses the ESG-performance link of SMEs, thus advancing existing knowledge related to ESG in respect of SME performance. The study uses an extensive Australian sample from Bloomberg’s database from 2007 to 2017, while panel regression analysis is applied to investigate the relationship between a firm’s ESG performance and profitability. The robustness of the results is evaluated after incorporating several robustness checks to address methodological, endogeneity and causality issues related to a firm’s ESG performance disclosure. The empirical findings of this study suggest that improving a firm’s ESG performance is beneficial to all stakeholders of large firms in the long run but not for SME companies. The theoretical model suggests that listed SMEs do not disclose their ESG activities for various reasons, such as a lack of necessary resources. Specifically, the study extends scholarly understanding of existing theory and discusses the significance of the findings for future research.

Keywordsenvironmental; social and governance; firm financial performance; stakeholder theory; legitimacy theory; voluntary disclosure
ANZSRC Field of Research 2020350107. Sustainability accounting and reporting
Byline AffiliationsSchool of Business
Institution of OriginUniversity of Southern Queensland
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Murray, Peter A.. 2012. "Training, development and learning." Kramar, Robin and Syed, Jawad (ed.) Human resource management in a global context: a critical approach. New York. Palgrave Macmillan. pp. 285-311
From training to learning in enterprise resource planning systems
Kerr, Don, Murray, Peter A. and Burgess, Kevin. 2012. "From training to learning in enterprise resource planning systems." International Journal of Learning and Change. 6 (1/2), pp. 18-32. https://doi.org/10.1504/IJLC.2012.045854
Rethinking market orientation through learning practices
Murray, Peter A., Gray, David M., Carter, Leanne and Miller, Karen W.. 2012. "Rethinking market orientation through learning practices." International Journal of Organisational Behaviour. 17 (3), pp. 8-32.
Improving training in enterprise resource planning systems implementation through communities of practice
Kerr, Don, Burgess, Kevin J., Houghton, Luke and Murray, Peter A.. 2012. "Improving training in enterprise resource planning systems implementation through communities of practice." International Journal of Learning and Change. 6 (3/4), pp. 207-222.
Integrating learning with change contexts
Murray, Peter A., Millett, Bruce and Syed, Jawad. 2011. "Integrating learning with change contexts ." International Journal of Learning and Change. 5 (3/4), pp. 189-193.
The influence of learning behaviour on team adaptability
Murray, Peter A. and Millett, Bruce. 2011. "The influence of learning behaviour on team adaptability." International Journal of Learning and Change. 5 (3/4), pp. 257-270. https://doi.org/10.1504/IJLC.2011.045072
The relationship between interpersonal relational competence and employee performance: a developmental model
Carter, Leanne, Murray, Peter and Gray, David. 2011. "The relationship between interpersonal relational competence and employee performance: a developmental model." International Journal of Interdisciplinary Social Sciences. 6 (3), pp. 213-229.
Learning behaviour, market orientation and firm performance
Murray, Peter A. and Miller, Karen W.. 2011. "Learning behaviour, market orientation and firm performance." Building Business Communities: Justice, Performance and Change Creating a Sustainable Scholarly Community Colloquia (2011). Brisbane, Australia 09 Nov 2011 Toowoomba, Australia.
Managing gender diversity in top management teams
Syed, Jawad and Murray, Peter. 2006. "Managing gender diversity in top management teams." Kennedy, Jessica and Di Milia, Lee (ed.) 20rd Australian and New Zealand Academy of Management Conference (ANZAM 2006). Yeppoon, Australia 06 - 09 Dec 2006 Brisbane, Australia.
Structures of learning for dynamic markets
Murray, Peter A., Syed, Jawad and Roberts, Zeynep. 2009. "Structures of learning for dynamic markets." Management Decision. 47 (2), pp. 271-288. https://doi.org/10.1108/00251740910938911
Combating the English language deficit: the labour market experiences of migrant women in Australia
Syed, Jawad and Murray, Peter. 2009. "Combating the English language deficit: the labour market experiences of migrant women in Australia." Human Resource Management Journal. 19 (4), pp. 413-432. https://doi.org/10.1111/j.1748-8583.2009.00106.x
Fashions of learning: improving supply chain relationships
Preiss, Kenneth J. and Murray, Peter A.. 2005. "Fashions of learning: improving supply chain relationships." Supply Chain Management. 10 (1), pp. 18-25. https://doi.org/10.1108/13598540510578342
Observations through gendered lenses: experiences of managerial women
Murray, Peter A. and Syed, Jawad. 2007. "Observations through gendered lenses: experiences of managerial women." Davis, Edward and Pratt, Valerie (ed.) Making the Link 18: Affirmative Action and Employment Relations. North Ryde, Australia 2006 Sydney, Australia.
Gendered observations and experiences in executive women's work
Murray, Peter A. and Syed, Jawad. 2010. "Gendered observations and experiences in executive women's work." Human Resource Management Journal. 20 (3), pp. 277-293. https://doi.org/10.1111/j.1748-8583.2009.00113.x
Beyond rigour and relevance: a critical realist approach to business education
Syed, Jawad, Mingers, John and Murray, Peter A.. 2010. "Beyond rigour and relevance: a critical realist approach to business education." Management Learning. 41 (1), pp. 71-85. https://doi.org/10.1177/1350507609350839
Theoretical perspectives of older workers: integrating human resource management practices with resource-based strategies
Mountford, Helene and Murray, Peter A.. 2011. "Theoretical perspectives of older workers: integrating human resource management practices with resource-based strategies." Ennals, Richard and Salomon, Robert H. (ed.) Older workers in a sustainable society. Frankfurt, Germany. Peter Lang Publishing. pp. 43-55
Thinking about leadership: contributions and contexts
Murray, Peter. 2006. "Thinking about leadership: contributions and contexts." Murray, Peter, Poole, David and Jones, Grant (ed.) Contemporary issues in management and organisational behaviour. Melbourne, Australia. Thomson Learning. pp. 274-307
Executive women, gendered behaviour and adaptive social structures
Murray, Peter A.. 2011. "Executive women, gendered behaviour and adaptive social structures." Murray, Peter A., Kramar, Robin and McGraw, Peter (ed.) Women at work: research, policy and practice. Melbourne, Australia. Tilde University Press. pp. 202-238
Empirical linkages between firm competencies and organizational learning
Murray, Peter and Donegan, Kevin. 2003. "Empirical linkages between firm competencies and organizational learning." The Learning Organization: the international journal of knowledge and organizational learning management. 10 (1), pp. 51-62. https://doi.org/10.1108/09696470310457496
Executive women at work
Murray, Peter, Parr, Nick and Syed, Jawad. 2008. "Executive women at work." Baird, Marion, Davis, Edward, McGraw, Peter and Pratt, Valerie (ed.) Making the link 19: affirmative action and employment relations. Sydney, Australia. CCH Australia Ltd.. pp. 55-62
Defining marketing orientation success through learning cultures
Carter, Leanne and Murray, Peter. 2007. "Defining marketing orientation success through learning cultures." 2007 Academy of Marketing Annual Conference: Marketing Theory Into Practice. Egham, United Kingdom 03 - 06 Jul 2007 London, UK.
From continuous improvement to organisational learning: developmental theory
Murray, Peter and Chapman, Ross. 2003. "From continuous improvement to organisational learning: developmental theory." The Learning Organization: the international journal of knowledge and organizational learning management. 10 (5), pp. 272-282. https://doi.org/10.1108/09696470310486629
Critical issues in managing age diversity in Australia
Murray, Peter and Syed, Jawad. 2005. "Critical issues in managing age diversity in Australia." Asia Pacific Journal of Human Resources. 43 (2), pp. 210-224. https://doi.org/10.1177/1038411105055059
Strategic quality management and financial performance indicators
Chapman, Ross L., Murray, Peter Charles and Mellor, Robert. 1997. "Strategic quality management and financial performance indicators." International Journal of Quality and Reliability Management. 14 (4), pp. 432-448.
Improving marketing intelligence through learning systems and knowledge communities in Not-for-Profit workplaces
Murray, Peter and Carter, Leanne. 2005. "Improving marketing intelligence through learning systems and knowledge communities in Not-for-Profit workplaces." Journal of Workplace Learning: employee counselling today. 17 (7), pp. 421-435. https://doi.org/10.1108/13665620510620016
A cultural feminist approach towards managing diversity in top management teams
Syed, Jawad and Murray, Peter A.. 2008. "A cultural feminist approach towards managing diversity in top management teams." Equality, Diversity and Inclusion: An International Journal. 27 (5), pp. 413-432. https://doi.org/10.1108/02610150810882288
The centrality of teams in the organisational learning process
Murray, Peter and Moses, Maree. 2005. "The centrality of teams in the organisational learning process." Management Decision. 43 (9), pp. 1186-1202. https://doi.org/10.1108/00251740510626263
Managing innovation through social architecture, learning, and competencies: a new conceptual approach
Murray, Peter and Blackman, Deborah. 2006. "Managing innovation through social architecture, learning, and competencies: a new conceptual approach." Knowledge and Process Management (Print Edition): the journal of corporate transformation. 13 (3), pp. 132-143. https://doi.org/10.1002/kpm.253
The effects of the balanced scorecard on performance: The impact of the alignment of the strategic goals and performance reporting
Iselin, Errol R., Mia, Lokman and Sands, John. 2008. "The effects of the balanced scorecard on performance: The impact of the alignment of the strategic goals and performance reporting." Journal of General Management. 33 (4), pp. 71-85. https://doi.org/10.1177/030630700803300405
Multi‐perspective strategic goal setting, performance reporting and organisational performance
Iselin, Errol R., Mia, Lokman and Sands, John. 2008. "Multi‐perspective strategic goal setting, performance reporting and organisational performance ." Journal of Applied Accounting Research. 9 (2), pp. 76-96. https://doi.org/10.1108/09675420810900766
Educators' Epistemological Beliefs of Accounting Ethics Teaching: A Cross-Cultural Study
Auyeung, Pak K., Dagwell, Ron, Ng, Chew and Sands, John. 2006. "Educators' Epistemological Beliefs of Accounting Ethics Teaching: A Cross-Cultural Study." Accounting Research Journal. 19 (2), pp. 122-138. https://doi.org/10.1108/10309610680000683
The perceived importance of international accounting topics in the Asia-Pacific rim: A comparative study
Sands, John Stephen and Pragasam, John. 1997. "The perceived importance of international accounting topics in the Asia-Pacific rim: A comparative study." The International Journal of Accounting. 32 (2), pp. 187-202. https://doi.org/10.1016/s0020-7063(97)90025-x
Factors influencing accounting students' career choice: A cross-cultural validation study
Auyeung, Pak and Sands, John. 1997. "Factors influencing accounting students' career choice: A cross-cultural validation study." International Journal of Phytoremediation. 21 (1), pp. 13-23. https://doi.org/10.1080/096392897331596
A cross cultural study of the learning style of accounting students
Auyeung, Pak and Sands, John. 1996. "A cross cultural study of the learning style of accounting students ." Accounting and Finance. 36 (2), pp. 261-274. https://doi.org/10.1111/j.1467-629X.1996.tb00310.x