TY - JOUR
T1 - Investment efficiency and environmental, social, and governance reporting
T2 - Perspective from corporate integration management
AU - Harymawan, Iman
AU - Nasih, Mohammad
AU - Agustia, Dian
AU - Putra, Fajar Kristanto Gautama
AU - Djajadikerta, Hadrian Geri
N1 - Funding Information:
Matching Fund 2021 by Indonesia's Ministry of Education, Culture, Research, and Technology Funding information
Funding Information:
We wanted to say thank you to any parties that support this paper's development. This study is funded by Indonesia's Ministry of Education, Culture, Research, and Technology in Matching Fund 2021 scheme. Particularly, this study included in proposal “Sustainable Finance Lab for Small Medium Enterprises: Raising Sustainable Future Leaders, Enhancing SMEs Impact.”
Publisher Copyright:
© 2022 ERP Environment and John Wiley & Sons Ltd.
PY - 2022
Y1 - 2022
N2 - This article examines the relationship between investment efficiency (INVEFF) and environmental, social, and governance (ESG) reporting. We posit corporate integration management (CIM), which is reflected by the level of INVEFF, is a crucial driver for the better quality of ESG reporting. But there is a second possibility which ESG reporting is viewed as a different firm's burden, and therefore, it is a form of inefficiency. We test our hypothesis in Indonesia's unique setting of nonfinancial listed firms from 2010 to 2018. We find that INVEFF is confirmed as one of the critical drivers for enhancing ESG reporting quality. Our result is consistent during several robustness checks. Furthermore, we document that a positive relationship between INVEFF and ESG reporting is not incurred in all circumstances. Our study is one of few studies that focus on quantitative measurement of CIM and examines its relationship with ESG reporting.
AB - This article examines the relationship between investment efficiency (INVEFF) and environmental, social, and governance (ESG) reporting. We posit corporate integration management (CIM), which is reflected by the level of INVEFF, is a crucial driver for the better quality of ESG reporting. But there is a second possibility which ESG reporting is viewed as a different firm's burden, and therefore, it is a form of inefficiency. We test our hypothesis in Indonesia's unique setting of nonfinancial listed firms from 2010 to 2018. We find that INVEFF is confirmed as one of the critical drivers for enhancing ESG reporting quality. Our result is consistent during several robustness checks. Furthermore, we document that a positive relationship between INVEFF and ESG reporting is not incurred in all circumstances. Our study is one of few studies that focus on quantitative measurement of CIM and examines its relationship with ESG reporting.
KW - ESG reporting
KW - integration management
KW - investment efficiency
KW - R&D investment
KW - sustainability reporting
KW - sustainable development
UR - http://www.scopus.com/inward/record.url?scp=85125651706&partnerID=8YFLogxK
U2 - 10.1002/csr.2263
DO - 10.1002/csr.2263
M3 - Article
AN - SCOPUS:85125651706
JO - Corporate Social Responsibility and Environmental Management
JF - Corporate Social Responsibility and Environmental Management
SN - 1535-3958
ER -
