Sustainability

2022

Jump to: 2021

16 pages, 292 KiB

Open AccessArticle

Achieving Financial Sustainability through Revenue Diversification: A Green Pathway for Financial Institutions in Asia

by Zhikang Xie, Xinglin Liu, Hina Najam, Qinghua Fu, Jawad Abbas, Ubaldo Comite, Laura Mariana Cismas and Andra Miculescu

Sustainability 2022, 14(6), 3512; https://doi.org/10.3390/su14063512 - 17 Mar 2022

Cited by 54 | Viewed by 6448

Abstract

Establishing balanced and sustainable development is critical for improving banks’ capability and performance. Financial development has enormous significance in an environment of increasingly contestable international markets, and can be achieved by enhancing banking efficiency and performance. The bank efficiency is estimated through data [...] Read more.

Establishing balanced and sustainable development is critical for improving banks’ capability and performance. Financial development has enormous significance in an environment of increasingly contestable international markets, and can be achieved by enhancing banking efficiency and performance. The bank efficiency is estimated through data envelopment analysis (DEA). By applying the quantile regression technique, this research examines the impact of revenue diversification (RD) on the bank efficiency (BE) of seven Asian emerging economies over 2008–2019. In this regard, non-performing loans (NPLs), non-interest income, capitalization, and gross domestic product (GDP) are taken as control variables. The empirical findings indicate that RD, market capitalization, non-interest income, and GDP have a significant positive impact on BE, whereas NPLs have a significant negative relationship with BE. These results have significant strategic implications for managers, regulators, and policymakers, who share a common interest in boosting financial sustainability and performance. Full article

2021

Jump to: 2022

24 pages, 515 KiB

Open AccessArticle

Financialization, Government Subsidies, and Manufacturing R&D Investment: Evidence from Listed Companies in China

by Peng Hou, Mengting Zhou, Jiaqi Xu and Yue Liu

Sustainability 2021, 13(22), 12633; https://doi.org/10.3390/su132212633 - 16 Nov 2021

Cited by 8 | Viewed by 3111

Abstract

Increasing research and development (R&D) investment is the key to the sustainable development of the manufacturing industry. With the development of financialization, manufacturing enterprises allocate greater funds to the financial field, which may significantly affect their level of R&D investment. However, few studies [...] Read more.

Increasing research and development (R&D) investment is the key to the sustainable development of the manufacturing industry. With the development of financialization, manufacturing enterprises allocate greater funds to the financial field, which may significantly affect their level of R&D investment. However, few studies have explored the relationship between the two. Using the data of manufacturing listed companies in China from 2007 to 2018, this paper investigates the impact of financialization on manufacturing R&D investment and further analyzes the moderating effect of government subsidies on the relationship between the two, mainly using Heckman’s two-step approach. The results show that, on the whole, financialization has a significant restraining effect on China’s manufacturing R&D investment, and that government subsidies exacerbate this negative effect. However, there are some differences in the statistical significance and in the level of influence of financialization on R&D investment, which are based on enterprise type, industry, region, and financing constraints. Additionally, the moderating effects of government subsidies under heterogeneous samples differ in sign, statistical significance, and impact magnitude. This paper not only conducts a comprehensive study on the impact of financialization on manufacturing R&D investment but also introduces government subsidies as the moderating variable into the analysis, which is conducive to a better understanding of the relationship between corporate financialization and manufacturing R&D investment in China. Full article

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20 pages, 375 KiB

Open AccessArticle

Multi-Criteria Analysis of Green Bonds: Hybrid Multi-Method Applications

by Antonio Lombardi Netto, Valerio Antonio Pamplona Salomon and Miguel Angel Ortiz Barrios

Sustainability 2021, 13(19), 10512; https://doi.org/10.3390/su131910512 - 22 Sep 2021

Cited by 21 | Viewed by 3467

Abstract

There is an increasing pressure by the community and customers forcing companies to insert environmental concerns in their practices. To help companies initiatives, the green bonds market was created. Our research question is “How to select bonds in a growing billion-dollar market?” This [...] Read more.

There is an increasing pressure by the community and customers forcing companies to insert environmental concerns in their practices. To help companies initiatives, the green bonds market was created. Our research question is “How to select bonds in a growing billion-dollar market?” This paper presents a multi-criteria decision analysis (MCDA) model to enable investors identify opportunities based not only in opinions, but grounded on objective facts. Analytic hierarchy process (AHP), complex proportional assessment (COPRAS), full consistency method (FUCOM), step-wise Weights Assessment Ratio Analysis (SWARA), and technique of order preference similarity to the ideal solution (TOPSIS) are MCDA methods applied in this paper. Top-fifteen green bonds ranked by specialized media were assessed with the proposed MCDA model. Criteria included the Environmental Performance Index (EPI) proposed by Yale University, and common financial indicators as assets, risks (

β

), and dividends. The new ranks from MCDA are compared each other and compared with the rank published by specialized media. Full article

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12 pages, 2174 KiB

Open AccessArticle

Investing in Real Estate in the Czech Republic and Analyzing the Dependence of Profitability and Technical and Socio-Economic Factors

by Eduard Hromada and Tomáš Krulický

Sustainability 2021, 13(18), 10273; https://doi.org/10.3390/su131810273 - 14 Sep 2021

Cited by 12 | Viewed by 3391

Abstract

This article deals with the study of the dependence between selected technical and socioeconomic factors in the real estate market that affects the return on investment. These factors include the average annual rental yield, sale/rental price for an apartment, the number of ads [...] Read more.

This article deals with the study of the dependence between selected technical and socioeconomic factors in the real estate market that affects the return on investment. These factors include the average annual rental yield, sale/rental price for an apartment, the number of ads related to the sale/rental of apartments per 1000 inhabitants, the number of new apartment ads per 1000 inhabitants, and the share of persons facing distraint. Data from the EVAL software were used for calculation. EVAL software was developed by one of the authors of this article and allows the collecting of advertisements promoting real estate for sale and rental in the Czech Republic. This article uses data for individual districts in the Czech Republic. The article uses the methods of descriptive and mathematical statistics. The dependencies between technical and economic parameters are investigated using regression analysis. Significant dependencies were identified between the following parameters: Between selling price of an apartment and the average annual rental yield; Between the average annual rental yield and the average number of months needed to pay for the apartment; Between the average annual rental yield and the share of individuals facing distraint, and between the selling price of an apartment and the price of an apartment for rent. Full article

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22 pages, 681 KiB

Open AccessArticle

Prediction Model as Sustainability Tool for Assessing Financial Status of Non-Profit Organizations in the Slovak Republic

by Jaroslav Mazanec and Viera Bartosova

Sustainability 2021, 13(17), 9721; https://doi.org/10.3390/su13179721 - 30 Aug 2021

Cited by 7 | Viewed by 3363

Abstract

Non-profit organizations (NPOs) play an important role in society. Nowadays, many companies apply the phenomenon—corporate social responsibility (CSR) which supports sustainable development and cooperation between the for-profit and non-profit sector. These companies are careful to cooperate with organizations and make decisions based on [...] Read more.

Non-profit organizations (NPOs) play an important role in society. Nowadays, many companies apply the phenomenon—corporate social responsibility (CSR) which supports sustainable development and cooperation between the for-profit and non-profit sector. These companies are careful to cooperate with organizations and make decisions based on many factors, such as financial stability and independence of non-profit organizations. These attributes are assessed by predictive models. The models are a common tool in the for-profit sector compared to the non-profit sector. In our case, the main aim of the research is to propose a prediction model to estimate financial status of Slovak non-profit organizations using discriminant analysis. The overall sample consists of 351 NPOs dividing into training and testing sub-samples. We find that model classifies correctly almost 91% of NPOs in the training sample, respectively less than 80% in the testing sample. However, the results show that all vulnerable NPOs are correctly classified based on the testing sample. Full article

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21 pages, 914 KiB

Open AccessArticle

Effects of Expansionary Monetary Policy on Agricultural Commodities Market

by Klára Čermáková and Eduardo Aguiar Henrique Filho

Sustainability 2021, 13(16), 9317; https://doi.org/10.3390/su13169317 - 19 Aug 2021

Cited by 8 | Viewed by 4760

Abstract

Agricultural commodities experienced a rise in prices during the first decade of the 2000s. The literature shows that the monetary policies adopted by developed economies can influence practically all economic indicators of developing markets. This paper aims to evaluate the effect of selected [...] Read more.

Agricultural commodities experienced a rise in prices during the first decade of the 2000s. The literature shows that the monetary policies adopted by developed economies can influence practically all economic indicators of developing markets. This paper aims to evaluate the effect of selected monetary policy measures on the prices of three selected agricultural commodities: soy, corn and sugar. Secondly, the study analyzes the price formation of these commodities during a period of expansionary monetary policy, in order to better understand how they are influenced by unconventional instruments. The central hypothesis is that the excessive liquidity created by the FED spills over to emerging economies, boosting investment and consumption there and, lastly, causing a commodity cycle. Our data (January 2000–December 2019) support this hypothesis and prove that expansionary monetary policy is capable of impacting agricultural commodities’ prices, but by different channels, due to the specificities of each commodity. The fact that people have more capital due to the credit obtained from loans seems to influence the price of sugar; soy is highly influenced by exchange rates of emerging markets, and corn is not very responsive to the used variables, which might be due to the high production rates of this commodity in the U.S. and the protectionist policies adopted by the government. Full article

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20 pages, 3713 KiB

Open AccessFeature PaperArticle

Corporate Social Responsibility in South Europe during the Financial Crisis and Its Relation to the Financial Performance of Greek Companies

by Ioannis Ziogas and Theodore Metaxas

Sustainability 2021, 13(14), 8055; https://doi.org/10.3390/su13148055 - 19 Jul 2021

Cited by 8 | Viewed by 3520

Abstract

This paper aims at presenting the notion of corporate social responsibility in Europe by examining its application in Southern European countries, Greece, Italy, Spain and Portugal. These major Mediterranean countries, beside the geographical proximity and common features, were at the center of the [...] Read more.

This paper aims at presenting the notion of corporate social responsibility in Europe by examining its application in Southern European countries, Greece, Italy, Spain and Portugal. These major Mediterranean countries, beside the geographical proximity and common features, were at the center of the financial crisis in Europe in 2009. The aforementioned countries are under evaluation on the one hand as a European region and on the other hand as independent ones. Considering the complexity of CSR, its aspects through time, its diversity depending on the geographical position and the necessity of ethical CSR as part of business activity, this paper presents a new categorization of existing quantitative indicators and a method of evaluation that covers the multidimensional notion of CSR. The new model, which combines quantitative indicators, is used to measure CSR during the period from 2009 until 2016 and reflects companies’ ethical policy, the degree of understanding their moral obligations. The longitudinal comparative analysis is the starting point for further improvement as the countries, except for Portugal, are fluctuating within low levels and the Mediterranean region as a whole in average ones. Furthermore, having estimate CSR index, the examination of the financial performance of Greek companies within the period 2015–2016 confirms the majority of the literature that the adoption of CSR’s good practices, is not only a moral rule, but contributes at least partly, to the development of their effectiveness. As a conclusion, the structure of a commonly acceptable measurement model of the National Social Responsibility and the longitudinal measurement will be a useful tool for all involved institutions, with immediate results to both the society and the companies. Full article

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17 pages, 1134 KiB

Open AccessArticle

The Ideal Debt Ratio of an Agricultural Enterprise

by Jiří Kučera, Marek Vochozka and Zuzana Rowland

Sustainability 2021, 13(9), 4613; https://doi.org/10.3390/su13094613 - 21 Apr 2021

Cited by 16 | Viewed by 4472

Abstract

The objective of the contribution is to propose a new methodology for determining the optimal credit absorption capacity of an enterprise while maintaining the positive function of financial leverage, i.e., the maximum possible loan that would continuously bring benefit to the enterprise. The [...] Read more.

The objective of the contribution is to propose a new methodology for determining the optimal credit absorption capacity of an enterprise while maintaining the positive function of financial leverage, i.e., the maximum possible loan that would continuously bring benefit to the enterprise. The proposed methodology determines the credit absorption capacity of an enterprise according to EVA Equity and EVA Entity. Based on a theoretical analysis of both indicators, the possibility of applying the proposed methodology for this purpose was proved. To verify the theoretical assumptions, the optimal credit absorption capacity of enterprises operating in the agricultural sector of the CR was determined. The data used for the purposes of the contribution were obtained from the Albertina database for the years 2012–2018. The credit absorption capacity of the monitored enterprises ranged from CZK 6.88 million to CZK 9.6 million. The article also determines the optimal ratio of equity to debt capital. Full article

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21 pages, 953 KiB

Open AccessArticle

The Concept of Strategic Control in Marketing Management in Connection to Measuring Marketing Performance

by Piotr Hadrian, František Milichovský and Pavel Mráček

Sustainability 2021, 13(7), 3887; https://doi.org/10.3390/su13073887 - 1 Apr 2021

Cited by 7 | Viewed by 9943

Abstract

This study deals with the issue of marketing control (the function that ties together the process of marketing management). More directly, we aim to provide a scientific reflection on the model presentation of the strategic level of such control. We present the views [...] Read more.

This study deals with the issue of marketing control (the function that ties together the process of marketing management). More directly, we aim to provide a scientific reflection on the model presentation of the strategic level of such control. We present the views discussed in the literature on marketing control, which can be treated as its model conceptual and structural solutions. The main objective of the study was to define key factors in individual areas (the market area, the area of the customer’s value, the financial area) that are connected to business activities and show their interconnection. We further analyzed the relevance of marketing and business activities in connection to performance evaluation in three areas: market, customer, and financial performance. The empirical evidence of the study came from quantitative, firm-level data gathered through an email questionnaire, which yielded 708 qualified responses from companies in the Czech Republic. The analysis employed factor analysis on the way to identify the key marketing indicators supporting corporate strategy marketing in specific areas. Furthermore, Pearson’s chi-square test was used to find possible dependencies between observed factors. According to the obtained results and the application of the chosen statistic methods, we identified seven factors of which five factors were acceptable. For these five factors, we identified seven statistical dependencies. The obtained results show that companies primarily use financial indicators to monitor and check their activities in the marketing area. The usage of financial indicators in connection to the marketing area is based mainly on the traditional approach of companies in the measuring process. The whole control mechanism in the company requires continuous control of all corporate activities, with relevant changes in implementation, and a comparison of obtained results to competitors or a company’s results in previous years. Full article

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