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Purpose The purpose of this paper is to investigate the potential determinants of FDI, in developed and developing countries. Design/methodology/approach This paper investigates FDI determinants based on panel data analysis using static and dynamic modeling for 20 countries (11 developed and 9 developing), over the period 2004-2013. For static model estimations, Hausman (1978) test indicates the applicability of fixed effect/random effect, while generalized moments of methods (GMM) (dynamic model) is used to capture endogeneity and unobserved heterogeneity. Findings The outcome across different countries depicts diverse results. In developed countries, FDI seeks policy-related determinants (GDP growth, trade openness, and freedom index), and in developing country FDI showed positive association for economic determinants (gross fixed capital formulation (GFCF), trade openness, and efficiency variables). Research limitations/implications The destination of FDI is limited to 20 countries in the present paper. The indicator of the institutional environment, namely economic freedom index, used in this paper has received some criticism in calculations. Practical implications The paper enlists recommendations for future FDI policies and may assist government in providing a tactical framework for skill development, thereby increasing manufacturing growth rate. The paper also throws light on vertical and horizontal capital inflows considering resource, strategy, and market-seeking FDI. Social implications FDI may bring significant benefits by creating high-quality jobs, introducing modern production and management practices. It highlights how multinational corporations and government contribute to better working conditions in host countries. Originality/value The paper uncovers important features like macroeconomic variables, especially country-wise efficiency scores, policy variables, GFCF, and freedom index, for determining FDI inflows in 20 countries using panel data methods and provides a roadmap for developed and developing countries. The study highlights endogeneity and unobserved heteroscedasticity by applying GMM one- and two-step procedure.

The growing relevance of sustainability reporting (SR) has dramatically surged advocacy and interest among both academicians and practitioners. However, few studies have attempted to holistically encapsulate global research on sustainability reporting. The present study employed scientometric analysis on sustainability reporting based 1434 articles extracted from the Web of Science database, published between 1992 and 2022, to comprehensively map the intellectual structure of this field. Domain visualizations were constructed using CiteSpace software to identify networks of co-authorship, keywords, subject categories, institutions, and countries engaged in publishing on SR along with co-citation and cluster analysis. The findings revealed that significant contributions in SR research have originated primarily from developed countries, underscoring the necessity for more research in the context of developing and emerging countries. SR field was found characterized by cohesive research sub-communities but lacked global cooperation. Existing studies in the SR research domain focused mainly on subject categories of business, management, environmental studies, green and sustainable science technology, environmental sciences, and business finance. Analysis of most co-cited authors and content analysis of highly co-cited articles were performed, detailing pioneer works in the field. The principal topics in the body of literature were identified via clusters of co-citations between documents and keywords. Future research focus areas include exploring the link between circular economy and SR, the role of social media, blockchain, artificial intelligence, and other digital technologies in SR, attention on the MSME sector, mandatory reporting, assessment of real impact of SR on investor sentiments and financial analysts’ valuations, assurance, standardization, financial-sector inclusive research, materiality issues, and understanding niche themes of SR, inclusive of monothematic reporting. Implications of the study for policymakers, companies, society, and academia were examined.

Over the past three decades, a plethora of academic research has examined the impact of debt capital providers, proxied by leverage, on firms’ sustainability reporting (SR) practices, indicating its relevance as a major determinant. Since the empirical literature remains inconclusive, we carried out the first comprehensive firm-level meta-analysis to reconcile the conflicting results from 112 studies involving 180 effect sizes across 32,953 firms spanning from 1989 to 2022. This provides a timely and up-to-date evaluation of the magnitude and nature of the engagement and influence of this significant stakeholder group on SR. Further, the study provides granular insights by dividing the overall effect on SR into three reporting dimensions—adoption, extent, and quality of reporting—to understand the impact of leverage on each and detail plausible reasons cited in the literature underpinning the positive or negative impact of debt providers on SR. The results show a positive significant impact of debt capital providers on SR, specifically, the adoption and extent of SR, but insignificant influence on SR quality, consistent with the findings of legitimacy theory. Debt capital providers’ sustainability information needs remain limited to the “act” and “extent” of disclosure and concern for SR has not percolated to “ask for quality,” indicative of a rather surface-level care for SR practices of firms. Regarding the strength of this stakeholder group and its funding power, greater activism, advocacy, and informational sensitivity are required to encourage firms to engage in meaningful SR practices. Subgroup analysis and meta-regression techniques were used to account for potential conceptual and study-based moderators. Significant discrepancies were observed due to differences in content of reported issues, type of firm, leverage proxies, the sample period, and publication quality. The study emphasizes the need for proactive measures among debt capital providers to counteract the limited positive impact of leverage on sustainability reporting. By identifying research gaps and exploring implications for debt providers and companies, this study highlights how ESG-sensitive lenders can potentially steer firms towards quality SR practices. It offers valuable insights that could inform policy changes, foster collaboration, and advance the practice of sustainability-oriented lending.

PurposeThe purpose of this paper is to establish the relationship between environmental‒social disclosure scores and corporate financial performance. The authors tried to investigate the relevance of assurance practice (whether or not companies’ assessment policies are subject to individual assessment for the given period) and value relevance in foreign-owned firms.Design/methodology/approachThis research is based on accounting-based valuation model proposed by Berthelot et al. (2003), considering the market value of equity as the function of book value and other financial indicators including Return of Assets and Return on Capital Employed. Environmental and social disclosure scores are extracted from Bloomberg database as the measure of company’s transparency in reporting value relevance information and sustainable development. The study considers the sample period of 8 years (2008‒15) and uses static (fixed effects and random effects) and dynamic (generalised methods of moments (GMM)) panel data estimations for analysing and concluding results.FindingsThe results support the evidence of environmental disclosure score as performance relevance indicator. Environmental disclosure score highlights the positive and significant relationship with different performance indicators. The interaction between foreign ownership and environmental disclosure represents a negative association, implying that foreign ownership is incubating more on profit making rather than environmental protection initiatives. However, in the context of the social disclosure score, a positive association with economic performance is found. But interaction term between foreign ownership and social disclosure represented a negative coefficient.Originality/valueValue relevance disclosures are investigated with performance indicators that create an incentive for stakeholders. Also, the effect of foreign ownership and value relevance interaction term on firm’s financial performance is determined. To the best of authors’ understanding, previous literature is silent about this dimension. The authors also tried to incorporate the solution to the endogeneity issue by using GMM.

PurposeThe paper attempts to revisit the nexus between economic growth, carbon emissions, trade openness, financial effectiveness and FDI for a sample of seven developed and developing countries using curvilinear relationship as per environmental Kuznets curve (EKC) hypothesis over long term.Design/methodology/approachThe authors determine the unit root properties of variables (using Clemente–Montañés–Reyes unit root test with double mean shifts and AO model and augmented Dickey–Fuller test) for structural breaks at different levels. Autoregressive distributed lag (ARDL) and error correction model (ECM) methodology was used to estimate long- and short-run parameters among the selected variables in sample countries from 1965 to 2016. Vector error correction (VEC) and Granger causality approach was used to determine the direction of causality.FindingsThe authors confirmed long-run relationship among the variables and highlighted high economic growth and energy consumption as the main causes of environmental degradation. While in India financial development and FDI inflows depict a negative association with environmental sustainability, however, such relationship was positive in the United Kingdom (UK), which is often considered as a benchmark for policymakers. The authors’ findings were in agreement with existing research insights in reporting FDI and financial development as the major contributors towards (unsustainable) sustainable environment through emissions in case of (developing country like India) developed country like UK. For other sample countries (China, Brazil, Japan, South Africa, United States of America (USA)), the authors’ model failed to capture financial development and FDI as significant contributors of carbon emissions. However, unidirectional causality running from energy to carbon emission was observed leading to the policy adoption of incentivizing alternative energy-based resources to increase energy efficiency across the energy value chain.Research limitations/implicationsManufacturing with renewable energy, in collaboration with private and foreign players, under an institutional framework is desirable. Policy instruments including mandatory administrative controls, economic incentives and voluntary schemes that promote energy efficiency building blocks need to be established. A sound legal system for implementing technological innovation, financial subsidy incentives, interest-free loan programmes and development of financial sector supports creation and thriving of energy efficient units, often a perquisite for accelerated development.Originality/valueBy undertaking a comparative analysis, the authors address the research gap through revisiting EKC hypothesis with different set of trade policy and financial development framework. To the best of the authors’ knowledge, earlier studies were limited to one-country data analysis and did not consider the comparative data set of developed and developing countries with reference to financial development and FDI components.

PurposeThe purpose of this paper is to compare environmental, social and governance (ESG) disclosures regulatory frameworks in developed and developing countries, identifying similarities, differences and trends to contribute to effective and sustainable practices globally.Design/methodology/approachDescriptive research design compares ESG frameworks in developed and developing countries. It reviews literature, collects data, analyzes differences and categorizes countries based on ESG development stages. Implications, recommendations and an analytical ESG table are explored and validated.FindingsThe study's findings have significant implications for practice, society and research. The categorization of 28 countries into four ESG framework development stages facilitates strategic implementation and improved decision-making aligned with sustainability reporting.Research limitations/implicationsThe study's findings will support regulators, policymakers and institutional investors in bridging the sustainability gap. By categorizing countries based on their ESG framework development stages, the study aims to provide benchmark practices for countries in the early stages of ESG disclosure. This will address information asymmetry issues and facilitate the establishment of resilient business operations and reporting practices. Ultimately, the study promotes long-term social and economic well-being by strengthening emerging sustainable practices.Originality/valueTo the best of the authors' knowledge, this study represents a novel contribution to the existing literature by analyzing the varying levels of development in the ESG policy framework across countries. It fills a gap in current research by providing a comprehensive assessment of the ESG landscape and highlighting the disparities and advancements in different countries. This study aims to shed light on the state of ESG policies and practices globally, providing valuable insights for future research and policy development in the field.

Purpose Excessive working capital or paucity of the same can impair the profits and health of an organization. The purpose of this paper is to analyze the impact of working capital management (WCM) on the profitability of firms for a sample comprising of non-financial companies in countries of South East Asia, South Asia and East Asia. Design/methodology/approach Analytical modeling has been used to estimate the impact of WCM on profitability with the help of financial data of the companies listed in major indices of the target countries (India, Pakistan, Myanmar, Sri Lanka, Bangladesh, Singapore, Thailand, Malaysia, Indonesia, Vietnam, Hong Kong, Japan, China, South Korea and Taiwan). The mathematical model presented in the paper has been tested using two-step-generalized method of moments. Findings The study reveals a non-linear relationship between profitability of a firm and WCM for 11 economies of the Asia Pacific region. Research limitations/implications The results are subject to the differences in the market dynamics of different economies (countries). Moreover, the limitations of the specific statistical method used to verify the model apply to the model too. Practical implications The research can be used as a tool by the firms (global as well as local) to ameliorate their performance by understanding the effects of WCM on profitability in different global markets and adjusting their working capital accordingly. Originality/value The research on the impact of WCM on profitability of the firms of South East Asia, South Asia and East Asia is a new effort and tries to make the importance of WCM more luciferous.