Environmental, Social and Governance (ESG) Practices and Performance in Shariah Firms: Agency or Stakeholder Theory?

IF 0.7 Q4 BUSINESS, FINANCE

Asian Academy of Management Journal of Accounting and Finance Pub Date : 2020-08-14 DOI:10.21315/aamjaf2020.16.1.1

S. Lee, M. Isa

引用次数: 41

Abstract

This study examines the impact of ESG (environmental, social and governance) practices on financial performance for a sample of MSCI World Islamic Index firms over the period 2010â€“2017. We also test whether ESG engagement should be considered an agency or stakeholder issue. Our sample consists of 461 Shariah-compliant firms from 20 countries that are included in the MSCI World Islamic Index. Firmsâ€™ involvement in ESG activities is taken from the Thomson Reuters ASSET4 database. The results reveal that ESG aggregate and its individual dimensions are positively related to firm performance, which is consistent with the stakeholder theory. We do not find evidence that ESG is associated with agency problems. The findings suggest that combined ESG and Shariah screenings can increase firm value, enhance more ethical, responsible and transparent practices and thus, create new markets for potential investors.

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Shariah公司的环境、社会和治理（ESG）实践与绩效：代理理论还是利益相关者理论？

本研究以摩根士丹利资本国际世界伊斯兰指数公司为样本，考察了2010 - - 2017年期间ESG(环境、社会和治理)实践对财务绩效的影响。我们还测试了ESG参与是否应被视为机构或利益相关者的问题。我们的样本包括来自20个国家的461家符合伊斯兰教法的公司，这些公司被纳入MSCI世界伊斯兰指数。公司参与ESG活动的数据来自汤森路透资产数据库。结果表明，ESG总量及其个体维度与企业绩效呈正相关，这与利益相关者理论一致。我们没有发现证据表明ESG与代理问题有关。研究结果表明，ESG和伊斯兰教法相结合的审查可以增加公司价值，增强更道德、更负责任和更透明的做法，从而为潜在投资者创造新的市场。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Academy of Management Journal of Accounting and Finance BUSINESS, FINANCE-

CiteScore

1.50

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets