Title: Nexus between sustainability management and financial performance - study on manufacturing firms from global emerging market

Authors: Yusuf Hassan; Sanchita Roychowdhury

Addresses: Department of Organizational Behaviour and Human Resource Management, Indian Institute of Management - Indore, Rau-Pithampur Road, Indore – 453556, India ' Department of Economics, Indian Institute of Management – Indore, Rau-Pithampur Road, Indore – 453556, India

Abstract: The objective of this study is to identify and analyse the causal relationship between a firm's sustainability management practices and its financial performance in global emerging economies. This study includes Granger causality and regression analysis of panel data of seven years for 119 manufacturing firms on environment, social and governance (ESG) indicators and measures for financial performance, i.e., ROA, ROE, price to book value and debt equity ratio. Through this study, we found that ESG factors hurt the financial performance of firms, but the vice-versa is may not true. Implications and future research have been suggested based on our observations.

Keywords: sustainability performance management; SPM; financial performance; Granger causality; global emerging market; environment; social and governance; ESG; social responsibility; manufacturing industry.

DOI: 10.1504/IJEWE.2019.103387

International Journal of Environment, Workplace and Employment, 2019 Vol.5 No.3, pp.206 - 219

Received: 27 Sep 2018
Accepted: 09 Apr 2019
Published online: 05 Nov 2019 *

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