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This study empirically investigates and explores the relationship between firms' environment consciousness and banks lending decision. We consider all US firms in the Kinder, Lydenberg and Domini Research & Analytics, Inc. social performance database for the year 1991 to 2006 and use their environment ranking along with the bank loan data from the Dealscan database with the relevant firm characteristics from Compustat. The findings indicate that bank incorporates firms' environment consciousness in their corporate lending decision. We establish that more eco-friendly firm, defined as a firm with higher environment score in the study, gets favorable loan contract than the firms with lower environment score. By considering firms' environment-consciousness in determining loan contract, banks can reduce their default risk. In addition, the other stakeholders of the business can also get benefits. The social implication of the study is also noteworthy. To get a favorable loan contract if firms become more environment- conscious, it will in turn benefit the whole society. The contribution of the banks can also expedite the Fed government's mitigation target achievement process. In sum, the corporate social responsibility, like eco-consciousness, can also be a determinant of cost of bank debt, which provides new insight to the policy makers and academicians.

In this research, we examined some of the key concerns faced by businesses from various industries which are associated with the COVID-19 pandemic. To extend the existing research, we also evaluate perspectives on sustainable recovery solutions proposed by the business. This market research, supported by academic research, is intended to support businesses and the Government in tapering their approach to achieving sustainable economic recovery. A total of 16 different industries participated in our research project and the findings of our research provide an evidence-based perspective on how businesses are responding to the pandemic and planning for the post-COVID era. This evidence document outlines recommendations on potential support packages and areas of focus for the Government to consider, based on recent survey data, lessons learnt from the past, professional experience and respected academic models.

AbstractManuscript TypeEmpiricalResearch Question/IssueThis study examines the direct effect of family ownership on innovation in emerging markets by using data from Indian family‐controlled publicly listed firms as its sample. In particular, we study (1) the direct effects of family ownership on innovation and (2) the influences of business group affiliation on these family firms.Research Findings/InsightsUsing an unbalanced panel of 395 Bombay Stock Exchange (BSE) listed Indian firms during the years 2001 and 2008, we found that the impact of family ownership on innovation productivity is positive (after controlling for possible endogeneity). We further emphasized the business group affiliation of family firms and distinguished between the innovation activities of group‐affiliated and stand‐alone family firms. We found that affiliating with top 50 business groups increases the innovation activities of these family firms.Theoretical/Academic ImplicationsTheoretically, we complement agency theory by incorporating both the institutional perspective and the external resourcing perspective to provide a more robust framework for examining the impact of family ownership on innovation in emerging markets. Methodologically, we adopted a more rigorous econometrics method by providing a panel analysis that used a system GMM estimator and addressed the endogeneity issue thoroughly, which represented a significant improvement over the shortcomings of the methodologies found in the existing literature.Practitioner/Policy ImplicationsOur findings suggest that the Indian government should provide support for affiliating family firms with business groups while improving policies on information disclosures; it should also establish a proper corporate governance mechanism for private and public family business. The findings further suggest that a corporate governance code should encourage family firms to have an independent professional CEO.

This study examines whether the trade-off between real and accrual-based management strategies differs between firms with and without political connections. We argue that politically connected firms are more likely to substitute real earnings management for accrual-based earnings management than non-connected firms. Although real earnings management is more costly, we expect that politically connected firms prefer this strategy because of its higher secrecy and potential to mask political favors. Using a unique panel data set of 5493 publicly traded firms in 30 countries, our results show that politically connected firms are more likely to substitute real earnings management strategies for accrual-based earnings management strategies than non-connected firms. We also find that when public monitoring and, therefore, the risk of detection increases, politically connected firms are more likely to resort to less detectable real earnings management strategies. Our finding that political connections play a significant role in the choice between accrual-based and real earnings management strategies suggests that focusing only on accrual-based measurements underestimates the total earnings management activities of politically connected firms.

AbstractIn this paper we conceptually identify the gap in the literature about lack of business's awareness in non ‐financial activities, especially biodiversity, which can be responsible for crisis like Covid‐19 which can adversely affect the global economy. We recommend approaches to existing business about how to enhance the quality of reporting by considering non‐human element in reporting and making it more comprehensive for the stakeholders. We adopt Actor Network Theory (ANT) and the Natural Inventory Model to support our argument that nature consists of both human and non‐human. From our observation about the Covid‐19 crisis and by consulting the existing relevant literature on CSR, Covid‐19, non‐financial reporting and integrated reports (IR), we propose the implication of non‐financial reporting by companies based on a theoretical framework. We recommend that companies should implement/adopt Circular Economy concept for sustainable business model and report on biodiversity and extinction accounting in more structured and mandatory way via producing IR to create value on short, medium and long terms. This is the first paper to tackle the Covid‐19 crisis and offer solution for future reporting. The findings will add value in the academia and society.

AbstractThis paper contributes to biodiversity and species extinction literature by examining the relationship between corporate accountability in terms of species protection and factors affecting such accountability from forward-thinking companies. We use triangulation of theories, namely deep ecology, legitimacy, and we introduce a new perspective to the stakeholder theory that considers species as a 'stakeholder'. Using Poisson pseudo-maximum likelihood (PPML) regression, we examine a sample of 200 Fortune Global companies over 3 years. Our results indicate significant positive relations between ecologically conscious companies that are accountable for the protection of biodiversity and species extinction and external assurance, environmental performance, partnerships with socially responsible organizations and awards for sustainable activities. Our empirical results appear to be robust in controlling for possible endogeneities. Our findings contribute to the discussion on the concern of species loss and habitat destruction in the context of corporate accountability, especially in responding to the sixth mass extinction event and COVID-19 crisis. Our results can also guide the policymakers and stakeholders of the financial market in better decision making.