Jul 2026· Stability: Journal of Management and Business· Vol 9, pp. 11-27· 0 citations· 26 references
Abstract
Corporate sustainability has become an essential element of corporate governance, requiring firms to integrate environmental, social, and governance (ESG) considerations into strategic decision-making and enterprise risk management. Although prior studies have widely examined ESG disclosure and sustainability reporting, limited attention has been given to how sustainability-related risks are embedded within governance and risk management processes. Evidence regarding the moderating role of ownership structure in this relationship also remains inconclusive, particularly in emerging markets. This study investigates the effect of Governance-Based Sustainability Risk Integration (GBSRI) on firm value and examines whether ownership structure moderates this relationship. A quantitative explanatory approach was employed using balanced panel data comprising 75 firm-year observations from 15 Indonesian listed companies operating in high-risk industries during 2020–2024. The GBSRI Index integrates the COSO ERM Framework, GRI Standards, and IFRS S1 and S2 into a governance-oriented framework with seven dimensions and 30 indicators. Using MRA with pooled OLS, the study finds that GBSRI has no significant effect on firm value, and ownership structure does not moderate this relationship. Nevertheless, the GBSRI Index contributes to sustainability accounting by offering a comprehensive framework for assessing sustainability risk integration into corporate governance and enterprise risk management, particularly in high-risk industries.
This paper focuses on the role of embedded corporate governance in the integration of environmental, social and governance (ESG) and firm profitability in emerging markets. The study adopts an explanatory sequential mixed-methods design comprising panel regression analysis of governance and financial indicators for the period 2014-2024, and qualitative analysis of ESG disclosures based on ISO IWA 48:2024, based on evidence from the listed agri-food sector in Zambia. Baseline governance models showed weak relationships with profitability across the panel estimators. Although governance did not demonstrate a statistically significant direct association with short-term accounting profitability, the qualitative findings consistently showed that governance strengthens accountability, stakeholder trust, organisational resilience and ESG integration. These findings support an embedded governance perspective in which governance contributes to sustainable competitiveness primarily through organisational capability rather than immediate financial gains. The results have managerial and policy implications for improving sustainable competitiveness in resource constrained and institutionally fragile settings.
Mubanga Lackson Chipimo, John Bwalya, Joseph Katongo Kanyanga· Symphonya Emerging Issues in...· 0 citations
This article examines how Enterprise Risk Management (ERM), Good Corporate Governance (GCG), and Environmental, Social, and Governance (ESG) disclosure shape corporate financial performance an increasingly pressing concern given growing demands for transparency, governance quality, and sustainability in today's business environment. The study seeks to understand how the joint application of these three governance mechanisms affects firm financial outcomes, particularly across emerging economies. To this end, a literature review was conducted on nine peer-reviewed articles published between 2018 and 2026, drawn from a diverse range of contexts including Indonesia, Malaysia, Vietnam, the ASEAN-5 region, Iran, Ghana, the United Kingdom, and the Nordic countries. The synthesis of these sources suggests that ERM consistently has a positive and significant effect on financial performance and firm value. GCG mechanisms, especially audit committee expertise, board size, and foreign ownership also contribute meaningfully to financial performance, although their effectiveness varies across institutional settings. ESG disclosure emerges as more than a direct determinant of firm value; it also serves as a moderator that strengthens the positive influence of ERM on corporate outcomes. Based on these findings, this study recommends that companies integrate ERM, GCG, and ESG simultaneously to enhance both financial performance and long-term organizational resilience.
Baskara Adi Prasatya, Rio Dhani Laksana· The International Conference...· 0 citations
Environmental, social, and economic disclosures represent a critical form of corporate transparency in communicating sustainability-related information that may heavily influence investors’ assessments of firm value in contemporary capital markets. This study aims to comprehensively examine the direct effect of sustainability reporting disclosure on firm value and investigate the moderating role of institutional ownership in this relationship. A quantitative research approach was employed using secondary data extracted from 37 consumer non-cyclical sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. The empirical findings reveal that sustainability reporting disclosure has a negative and statistically significant effect on firm value. The results also indicate that the relatively low level of institutional ownership observed in the sample has not yet functioned as an effective external monitoring mechanism capable of strengthening the value relevance or credibility of sustainability reporting in the eyes of the market.
Unknown authors· International Journal of Sci...· 0 citations
This study aims to analyze the role of sustainability reporting in enhancing corporate transparency and firm value in the Environmental, Social, and Governance (ESG) era. ESG issues have become increasingly important in business practice and capital markets because investors no longer evaluate firms solely based on financial performance, but also consider how companies manage environmental risks, social responsibility, and governance quality. This study employs a quantitative approach with an explanatory research design. The sample consists of 120 non-financial companies listed on the Indonesia Stock Exchange during the 2020–2024 period, resulting in 600 firm-year observations. The data were obtained from annual reports, sustainability reports, financial statements, and capital market data. Sustainability reporting is measured using a sustainability disclosure index based on ESG indicators, corporate transparency is measured using an information transparency index, and firm value is measured using Tobin’s Q. The data analysis technique is panel data regression with mediation testing. The results show that sustainability reporting has a positive effect on corporate transparency and firm value. Corporate transparency is also found to have a positive effect on firm value and to mediate the relationship between sustainability reporting and firm value. These findings confirm that sustainability reports do not merely serve as compliance instruments, but also function as strategic mechanisms for strengthening information openness, reducing information asymmetry, and increasing investor confidence. This study implies that companies should prepare sustainability reports in a material, consistent, credible, and business-integrated manner in order to create sustainable firm value.
Nur Abdillah, Warsino Warsino, Ni Nengah Citra Dwi Anggraeni et al.· Trending: Jurnal Manajemen d...· 0 citations
The sustainability and resilience of rural banks have become increasingly important amid rapid digital transformation, evolving regulatory requirements, and heightened risk exposures. This study examined the combined influence of corporate governance and credit risk management practices on the financial performance of rural banks in the Philippines using an Integrated Governance-Risk Framework. A quantitative descriptive-correlational research design was employed involving 54 respondents from 18 rural banks in Central Luzon. Primary data were collected through structured questionnaires, while secondary data were obtained from the Bangko Sentral ng Pilipinas (BSP) Data Center and published financial statements . Descriptive statistics, Pearson correlation, and multiple regression analyses were used to examine the relationships among the variables. The findings revealed that rural banks exhibited high levels of corporate governance and credit risk management implementation. Corporate governance practices significantly influenced financial performance, demonstrating that stronger governance contributes to improved profitability and organizational effectiveness. In contrast, credit risk management practices showed no significant direct effect on financial performance, although they remained essential in maintaining financial stability, asset quality, and regulatory compliance. The study concludes that integrating sound corporate governance with effective credit risk management provides a comprehensive framework for enhancing the financial performance, sustainability, and long-term resilience of rural banks in the Philippines
Christine Aguirre Cayanan· Journal of Business, Finance...· 0 citations
Sustainable development is increasingly reshaping corporate strategies, particularly in emerging markets such as India, where environmental, social, and governance (ESG) integration has become pivotal for long‐term value creation. This study examines the impact of ESG performance on firm outcomes for Nifty 500 firms over 2014–2024, considering both aggregated and disaggregated ESG dimensions, while assessing the influence of country‐level governance mechanisms. Using panel regression analysis, the findings reveal that robust ESG practices significantly enhance financial, operational, and market performance, underscoring their strategic relevance. At the disaggregated level, social (SOC) and governance (GOV) performance consistently improve profitability, efficiency, and market valuation, whereas environmental (ENV) initiatives exhibit short‐term negative effects, likely due to compliance and investment costs. Further, country governance indicators, including voice and accountability (VAA), political stability and absence of violence (PSV), government effectiveness (GVE), regulatory quality (REQ), rule of law (ROL), and control of corruption (COC), differentially shape the ESG–performance link. While VAA, PSV, REQ, and GVE enhance ESG's impact, ROL and COC constrain immediate gains, highlighting the role of governance quality in aligning ESG initiatives with firm‐level outcomes. The study provides critical insights for regulators, policymakers, investors, and corporate managers, emphasizing governance as a key enabler of sustainable growth in an emerging market.
Rizwana Khurshid, A. Islam· Business Strategy & Deve...· 0 citations
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