Firms’ Dynamics of ESG and Islamic Finance-Liquidity, Solvency and Macroeconomic Externalities: A Case Study of OIC Countries

الموضوعات

اقتصاد

الملخص

This study aims to investigate if equities that are both ESG-compliant and Shari’ah Complaint perform better than ESG-compliant only and Shari’ah compliant only equities in terms of Leverage (Liquidity & Solvency), credit rating, probability of default and sectorial performance.Design/methodology/approach: Two-step system generalized method of moments (dynamic estimation) approach is used to investigate the effects of the explanatory variables on the dependent variables and the comparative leverage performances analysis, between the different categories of equities-4922 companies across 31 OIC member countries of the variables of interest from 2010 to 2020Findings: Sustainability reporting of companies does not necessarily mean good ESG performance. Top ESG performing firms are less solvent than their counterparts. Sustainability reporting, ESG performance, and Shari’ah compliance reinforce the liquidity strengths of a company. However, firms that are both ESG compliant and Shari’ah compliant have a higher initial cost of debt, and total current liability. Financial performance (ROA and liquidity control) have a positive interaction with ESG performance. Shari’ah compliancy blends well (positive for both current and quick ratio) with macro-economic variables which might reflect the constructive, ethical and preservatives nature of the financial approach to the society. Both ESG performance and CSR reporting have negative interactions with macroeconomic variables, which might reflect capitalism, interest-based and profit seeking concepts. Like the literature, financial performance(ROA and liquidity control) has a positive interaction with ESG performance, sustainability reporting and Shari’ah compliance, but companies that are both ESG compliant and Shari’ah compliant have higher profitability and liquidity control than ESG only and Shari’ah compliant only companies (evident from the regression coefficients). Hence, equities that are both ESG-compliant and Shari’ah-compliant are more profitable, and reliable. 5Originality/value: There are limited or no studies that investigate the subject matter from the standpoint of firms' dynamics, especially in OIC countries. Also, there are limited or no studies that investigate the mechanisms of macroeconomic externalities that can be geared to reinforce firms' dynamics of ESG and Islamic Finance

روابط وملفات

التعريف والنوع

رقم الوثيقة

febbca69-c788-420e-a4c0-e65e982dacfd

رقم العقد

0

نوع الوسائط

Crawler

نوع المحتوى

الرسائل العلمية

صيغة المصدر

رسائل ماجيستير

نوع الملف

pdf text

أسماء الملفات

febbca69-c788-420e-a4c0-e65e982dacfd_1.pdf

بيانات النشر

ألقاب المؤلفين

[{"name_ar":"Ayodele Emmanuel Akande","title_ar":"اعداد","title_en":"Preparation"},{"name_ar":"Dalal Aassouli","title_ar":"اشراف","title_en":"Supervision"}]

اللغة

English

المصدر والدورية

اسم المصدر

Firms’ Dynamics of ESG and Islamic Finance-Liquidity, Solvency and Macroeconomic Externalities: A Case Study of OIC Countries

المحتوى والصفحات

عدد الصفحات

0

كلمات الباحثين

Basic needs - Capabilities ESG-Islamic finance - GMM methods - Negative externalities

إشراف وإعداد

الإشراف

Dalal Aassouli

الإعداد

Ayodele Emmanuel Akande

الاقتباسات الببليوغرافية