The interaction effect of board characteristics and ESG reporting on the financial performance of multinational enterprises: a quantile regression approach

Ibrahim Elmghaamez; Alireza  Zarei; Ayse  Demir

doi:10.1504/IJBGE.2024.10066665

The interaction effect of board characteristics and ESG reporting on the financial performance of multinational enterprises: a quantile regression approach

Ibrahim Elmghaamez
, Alireza Zarei
, Ayse Demir

Durham Business School
University of Roehampton

Research output: Contribution to journal › Article › peer-review

3 Downloads (Pure)

Abstract

This study employs a quantile regression approach to investigate the moderating role of board characteristics in the relationship between environmental, social, and governance (ESG) reporting and the financial performance of multinational enterprises (MNEs). The study utilizes panel data from the largest listed MNEs between 2009 and 2019. The findings suggest that the impact of ESG reporting on financial performance varies significantly across different quantile levels of firm performance. Specifically, the positive effect of board characteristics, as measured by the Board Organization and Characteristics Index (BOCI), on the relationship between ESG reporting and financial performance is observed at the median and higher quantiles. However, the study also reveals a negative moderating effect of BOCI on the relationship between ESG disclosure and market-based measures at the lower and median quantiles, but not at the upper quantile level. The study highlights the importance of board characteristics in the complex interplay between ESG reporting and financial performance for MNEs.

Original language	English
Pages (from-to)	(In-Press)
Number of pages	40
Journal	International Journal of Business Governance and Ethics
Volume	(In-Press)
DOIs	https://doi.org/10.1504/IJBGE.2024.10066665
Publication status	Accepted/In press - 8 May 2024

Bibliographical note

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the accepted manuscript, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

ESG disclosure
multinational enterprises
board characteristics
quantile regression

Access to Document

10.1504/IJBGE.2024.10066665

Elmghaamez2024AAMAccepted author manuscript, 1.02 MB

Cite this

The interaction effect of board characteristics and ESG reporting on the financial performance of multinational enterprises: a quantile regression approach. / Elmghaamez, Ibrahim; Zarei, Alireza ; Demir, Ayse .
In: International Journal of Business Governance and Ethics, Vol. (In-Press), 08.05.2024, p. (In-Press).

Research output: Contribution to journal › Article › peer-review

@article{be4a5ec360724d68bce5c53b34e8fd7a,

title = "The interaction effect of board characteristics and ESG reporting on the financial performance of multinational enterprises: a quantile regression approach",

abstract = "This study employs a quantile regression approach to investigate the moderating role of board characteristics in the relationship between environmental, social, and governance (ESG) reporting and the financial performance of multinational enterprises (MNEs). The study utilizes panel data from the largest listed MNEs between 2009 and 2019. The findings suggest that the impact of ESG reporting on financial performance varies significantly across different quantile levels of firm performance. Specifically, the positive effect of board characteristics, as measured by the Board Organization and Characteristics Index (BOCI), on the relationship between ESG reporting and financial performance is observed at the median and higher quantiles. However, the study also reveals a negative moderating effect of BOCI on the relationship between ESG disclosure and market-based measures at the lower and median quantiles, but not at the upper quantile level. The study highlights the importance of board characteristics in the complex interplay between ESG reporting and financial performance for MNEs.",

keywords = "ESG disclosure, multinational enterprises, board characteristics, quantile regression",

author = "Ibrahim Elmghaamez and Alireza Zarei and Ayse Demir",

note = "Copyright {\textcopyright} and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. This document is the accepted manuscript, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it. ",

year = "2024",

month = may,

day = "8",

doi = "10.1504/IJBGE.2024.10066665",

language = "English",

volume = "(In-Press)",

pages = "(In--Press)",

journal = "International Journal of Business Governance and Ethics",

issn = "1477-9048",

publisher = "Inderscience Enterprises Ltd.",

}

TY - JOUR

T1 - The interaction effect of board characteristics and ESG reporting on the financial performance of multinational enterprises

T2 - a quantile regression approach

AU - Elmghaamez, Ibrahim

AU - Zarei, Alireza

AU - Demir, Ayse

N1 - Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. This document is the accepted manuscript, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

PY - 2024/5/8

Y1 - 2024/5/8

N2 - This study employs a quantile regression approach to investigate the moderating role of board characteristics in the relationship between environmental, social, and governance (ESG) reporting and the financial performance of multinational enterprises (MNEs). The study utilizes panel data from the largest listed MNEs between 2009 and 2019. The findings suggest that the impact of ESG reporting on financial performance varies significantly across different quantile levels of firm performance. Specifically, the positive effect of board characteristics, as measured by the Board Organization and Characteristics Index (BOCI), on the relationship between ESG reporting and financial performance is observed at the median and higher quantiles. However, the study also reveals a negative moderating effect of BOCI on the relationship between ESG disclosure and market-based measures at the lower and median quantiles, but not at the upper quantile level. The study highlights the importance of board characteristics in the complex interplay between ESG reporting and financial performance for MNEs.

AB - This study employs a quantile regression approach to investigate the moderating role of board characteristics in the relationship between environmental, social, and governance (ESG) reporting and the financial performance of multinational enterprises (MNEs). The study utilizes panel data from the largest listed MNEs between 2009 and 2019. The findings suggest that the impact of ESG reporting on financial performance varies significantly across different quantile levels of firm performance. Specifically, the positive effect of board characteristics, as measured by the Board Organization and Characteristics Index (BOCI), on the relationship between ESG reporting and financial performance is observed at the median and higher quantiles. However, the study also reveals a negative moderating effect of BOCI on the relationship between ESG disclosure and market-based measures at the lower and median quantiles, but not at the upper quantile level. The study highlights the importance of board characteristics in the complex interplay between ESG reporting and financial performance for MNEs.

KW - ESG disclosure

KW - multinational enterprises

KW - board characteristics

KW - quantile regression

U2 - 10.1504/IJBGE.2024.10066665

DO - 10.1504/IJBGE.2024.10066665

M3 - Article

SN - 1477-9048

VL - (In-Press)

SP - (In-Press)

JO - International Journal of Business Governance and Ethics

JF - International Journal of Business Governance and Ethics

ER -

The interaction effect of board characteristics and ESG reporting on the financial performance of multinational enterprises: a quantile regression approach

Abstract

Bibliographical note

Keywords

Access to Document

Fingerprint

Cite this