Integrating Sustainability Reporting into Enterprise Risk Management and its Relationship with Business Performance: A Conceptual Framework

Kód výsledku v IS VaVaI

RIV/00216305:26210/19:PU129971 - isvavai.cz

Výsledek na webu

https://www.sciencedirect.com/science/article/pii/S0959652618331366?via%3Dihub

DOI - Digital Object Identifier

10.1016/j.jclepro.2018.10.120

Jazyk výsledku

angličtina

Název v původním jazyce

Integrating Sustainability Reporting into Enterprise Risk Management and its Relationship with Business Performance: A Conceptual Framework

Popis výsledku v původním jazyce

This paper conceptualises a framework that examines the moderating effect of sustainability reporting practices on the relationship between enterprise risk management (ERM) implementation and business performance. Business performance is proxied through a value-added measurement technique, namely the economic value added (EVA). An Effective ERM adoption has a significant positive impact on businesses' overall performance. However, there are limited studies conducted on ERM implementation and how sustainability reporting could influence organisations' performance through ERM. Many business organisations globally do not incorporate sustainability initiatives within their corporate strategy, whereas they should be critical input for strategic management and corporate planning. By combining the Stakeholders Theory and the Modern Portfolio Theory, this study integrates ERM implementation with sustainability reporting to examine their effect on business performance's economic value added. This paper proposes a quantitative content analysis of the of the annual reports to obtain information about companies' enterprise risk management practices and sustainability reporting. While secondary data related to the economic value added (EVA) measurement will be extracted from Thomson Reuters DataStream. The paper proposes ordinary least square (OLS) for the proposed analysis. The conceptual model espoused by this study will provide insights in formulating strategies and serve as an important conduit to enhance the EVA performance especially of the oil and gas companies. The EVA performance can be achieved through the improvement of price to earnings ratios and the reduction of cost of capital by reducing information asymmetry among the business, the insurance companies, the lenders and the shareholders of the company.

Název v anglickém jazyce

Integrating Sustainability Reporting into Enterprise Risk Management and its Relationship with Business Performance: A Conceptual Framework

Popis výsledku anglicky

This paper conceptualises a framework that examines the moderating effect of sustainability reporting practices on the relationship between enterprise risk management (ERM) implementation and business performance. Business performance is proxied through a value-added measurement technique, namely the economic value added (EVA). An Effective ERM adoption has a significant positive impact on businesses' overall performance. However, there are limited studies conducted on ERM implementation and how sustainability reporting could influence organisations' performance through ERM. Many business organisations globally do not incorporate sustainability initiatives within their corporate strategy, whereas they should be critical input for strategic management and corporate planning. By combining the Stakeholders Theory and the Modern Portfolio Theory, this study integrates ERM implementation with sustainability reporting to examine their effect on business performance's economic value added. This paper proposes a quantitative content analysis of the of the annual reports to obtain information about companies' enterprise risk management practices and sustainability reporting. While secondary data related to the economic value added (EVA) measurement will be extracted from Thomson Reuters DataStream. The paper proposes ordinary least square (OLS) for the proposed analysis. The conceptual model espoused by this study will provide insights in formulating strategies and serve as an important conduit to enhance the EVA performance especially of the oil and gas companies. The EVA performance can be achieved through the improvement of price to earnings ratios and the reduction of cost of capital by reducing information asymmetry among the business, the insurance companies, the lenders and the shareholders of the company.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

20402 - Chemical process engineering

Projekt

EF15_003/0000456: Laboratoř integrace procesů pro trvalou udržitelnost

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Journal of Cleaner Production

ISSN

0959-6526

e-ISSN

1879-1786

Svazek periodika

208

Číslo periodika v rámci svazku

208

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

11

Strana od-do

415-425

Kód UT WoS článku

000451362200039

EID výsledku v databázi Scopus

2-s2.0-85056162894