Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population GrowthReturn

This article examines whether investing in ESG impacts banks’ stock returns, aiming to illustrate the value generated by ESG investment in the MSCI Emerging Markets Index. The fiscal year-end data of thirty-five financial companies within the Index, covering the period from December 31, 2015, to December 31, 2022, have been utilised. The analysis employs a pooled panel regression model utilising robust least squares estimation. Firm-specific and market-specific variables are used as independent variables. We have observed a significant positive direct relationship between the social pillar score and stock returns. Banks may initiate investments in social pillars in the Index. In addition, firm-specific variables such as market capitalisation, return on equity, capital adequacy, and price-earnings ratio influence the relationship between ESG pillar scores and stock returns. We recommend that portfolio managers closely monitor improvements in ESG pillar scores alongside firm-specific variables to predict banks’ stock returns in the index.

This paper analyses the attitudes and opinions of statutory auditors regarding the issue of Environmental, Social and Governance reporting and its verification in the Czech Republic. The research examines auditors’ willingness to perform ESG assurance, their attitudes towards ESG issues, and their views on key skills and training needs. A questionnaire survey was conducted among Czech statutory auditors, and the results were analysed using statistical methods. The findings reveal differing attitudes between auditors employed in audit firms and self-employed auditors. Auditors from larger companies are more likely to perceive ESG reporting as a meaningful tool for responsible business and demonstrate greater interest in its verification, whereas self-employed auditors tend to be more sceptical and regard ESG as more of a formal obligation. Although the study focuses on the Czech Republic, it is based on European legislation, and the results can be generalised across the EU.

The purpose of this empirical research is to determine the relative impact of food safety concern, ethical concern and health consciousness on the theory of planned behavior dimensions. Moreover, this study also ascertains the impact of the theory of planned behavior dimensions (attitude, subjective norms, and perceived behavioral control on repurchase intentions of organic food among Pakistan and Italian consumers. A highly structured questionnaire is used to collect the data from 337 consumers from Italy and 314 consumers living in Pakistan. As proposed by the researchers, measurements invariance tests are used to analyze the cultural differences (if any) and subsequently structural equation modeling is used to determine the study hypotheses. The study results revealed mix findings and demonstrated significant differences between Pakistani and Italian consumers.

The recent global developments have emphasized the limits of the actual corporate reporting system. Today's organizations experience a growing pressure exercised by various types of stakeholders as a result of the increasingly public concern regarding environmental and social issues. Hence, companies must assume their responsibility for the improvement of the environment and society within which they operate materialized through the disclosure of sustainability and corporate responsibility information. The main challenge is not to simply increase the amount of information provided inside the annual reports, but to increase their relevance through new, comprehensive and condensed reporting practices which combine and interconnect financial and nonfinancial data. Accordingly, the concept of integrated reporting is founded. Despite its necessity and adequacy, differences among countries regarding the adoption of integrated reporting exist. This paper aims to analyze the relation between the number of integrated reports issued by companies inside a country in relation with its economic, social and environmental performances. The results found that there is a higher commitment from companies, belonging to more developed countries, to make their contribution towards the development of integrated reporting concept and practice.