Sustainable development goals and corporate financial performance: examining the influence of stakeholder engagement
This study investigates the relationship between sustainable development goals (SDG) and corporate financial performance (CFP) in the motor vehicle manufacturing sector. Using a comprehensive dataset from CSRHUB database, covering 380 companies from 2016 to 2022, we analyze how SDG-related disclo...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
| Published: |
John Wiley and Sons
2024
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/114726/ http://psasir.upm.edu.my/id/eprint/114726/1/114726.pdf |
| _version_ | 1848866577442668544 |
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| author | Lin, Woon Leong Chong, Siong Choy Wong, Kelly Kai Seng |
| author_facet | Lin, Woon Leong Chong, Siong Choy Wong, Kelly Kai Seng |
| author_sort | Lin, Woon Leong |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study investigates the relationship between sustainable development goals
(SDG) and corporate financial performance (CFP) in the motor vehicle manufacturing
sector. Using a comprehensive dataset from CSRHUB database, covering 380 companies
from 2016 to 2022, we analyze how SDG-related disclosures—across depth,
breadth, and concentration—impact financial metrics such as return on assets (ROA),
return on equity (ROE), return on invested capital (ROIC), and Tobin's Q. The study
employs the system generalized method of moments (System GMM) to mitigate
endogeneity concerns, ensuring robust results. Our findings reveal that while SDG
initiatives positively influence CFP, the role of stakeholder engagement is pivotal.
Firms with comprehensive SDG strategies and high stakeholder engagement experience
superior financial outcomes. However, an overly narrow focus on specific SDG
themes, even with strong stakeholder interactions, correlates with weaker financial
performance. This research contributes to the ongoing discourse on corporate sustainability
by highlighting the moderating effect of stakeholder engagement in SDG
disclosures. The findings offer practical implications for both policymakers and business
leaders, suggesting a balanced approach to SDG reporting to maximize financial
performance. |
| first_indexed | 2025-11-15T14:22:49Z |
| format | Article |
| id | upm-114726 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T14:22:49Z |
| publishDate | 2024 |
| publisher | John Wiley and Sons |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1147262025-01-27T05:13:03Z http://psasir.upm.edu.my/id/eprint/114726/ Sustainable development goals and corporate financial performance: examining the influence of stakeholder engagement Lin, Woon Leong Chong, Siong Choy Wong, Kelly Kai Seng This study investigates the relationship between sustainable development goals (SDG) and corporate financial performance (CFP) in the motor vehicle manufacturing sector. Using a comprehensive dataset from CSRHUB database, covering 380 companies from 2016 to 2022, we analyze how SDG-related disclosures—across depth, breadth, and concentration—impact financial metrics such as return on assets (ROA), return on equity (ROE), return on invested capital (ROIC), and Tobin's Q. The study employs the system generalized method of moments (System GMM) to mitigate endogeneity concerns, ensuring robust results. Our findings reveal that while SDG initiatives positively influence CFP, the role of stakeholder engagement is pivotal. Firms with comprehensive SDG strategies and high stakeholder engagement experience superior financial outcomes. However, an overly narrow focus on specific SDG themes, even with strong stakeholder interactions, correlates with weaker financial performance. This research contributes to the ongoing discourse on corporate sustainability by highlighting the moderating effect of stakeholder engagement in SDG disclosures. The findings offer practical implications for both policymakers and business leaders, suggesting a balanced approach to SDG reporting to maximize financial performance. John Wiley and Sons 2024 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/114726/1/114726.pdf Lin, Woon Leong and Chong, Siong Choy and Wong, Kelly Kai Seng (2024) Sustainable development goals and corporate financial performance: examining the influence of stakeholder engagement. Sustainable Development. pp. 1-26. ISSN 0968-0802; eISSN: 1099-1719 (In Press) https://onlinelibrary.wiley.com/doi/10.1002/sd.3259 Economics - Research Microeconomics Business enterprises - Malaysia - Finance 10.1002/sd.3259 English |
| spellingShingle | Economics - Research Microeconomics Business enterprises - Malaysia - Finance Lin, Woon Leong Chong, Siong Choy Wong, Kelly Kai Seng Sustainable development goals and corporate financial performance: examining the influence of stakeholder engagement |
| title | Sustainable development goals and corporate financial
performance: examining the influence of stakeholder engagement |
| title_full | Sustainable development goals and corporate financial
performance: examining the influence of stakeholder engagement |
| title_fullStr | Sustainable development goals and corporate financial
performance: examining the influence of stakeholder engagement |
| title_full_unstemmed | Sustainable development goals and corporate financial
performance: examining the influence of stakeholder engagement |
| title_short | Sustainable development goals and corporate financial
performance: examining the influence of stakeholder engagement |
| title_sort | sustainable development goals and corporate financial
performance: examining the influence of stakeholder engagement |
| topic | Economics - Research Microeconomics Business enterprises - Malaysia - Finance |
| url | http://psasir.upm.edu.my/id/eprint/114726/ http://psasir.upm.edu.my/id/eprint/114726/ http://psasir.upm.edu.my/id/eprint/114726/ http://psasir.upm.edu.my/id/eprint/114726/1/114726.pdf |