Purpose This study revisits the relationship between environmental, social and governance (ESG) activities and firm performance. More importantly, it tests whether this relationship is moderated by critical yet underexplored factors such as stakeholder engagement, financial constraints, and religiosity. Design/methodology/approach A wide range of estimation techniques, including pooled ordinary least squares (OLS), fixed effects, system generalized method of moments (GMM) and propensity score matching-difference-in-differences (PSM-DiD), are employed to investigate such issues in a large sample of firms from 31 countries. Findings ESG performance has a positive and significant impact on firm performance. While stakeholder engagement positively moderates this relationship, financial constraints and religiosity negatively moderate it. Interestingly, this positive linkage is driven by environmental and social performance rather than governance performance. Practical implications Firms should proactively engage in ESG initiatives and consider the intervening influences of stakeholder engagement, financial constraints and religiosity in making decisions to invest in ESG activities. Furthermore, our findings can help policymakers understand the financial consequences of ESG practices, which can be helpful in designing new policies to further promote corporate engagement in ESG practices. Originality/value First, our research findings help reconcile the long-standing debate about the value impact of ESG. Second, our paper investigates relatively new aspects of the ESG-firm performance relationship. Third, our study offers more insight into the ESG literature by showing that not all ESG dimensions equally impact firm performance.

Purpose There is a need for research examining how governments and firms responded to the coronavirus disease (COVID-19) pandemic. This study investigates the interdependence between governments and innovative small and medium-sized enterprises (SMEs) during the pandemic in relation to the dynamic capabilities and resource dependence theories. Design/methodology/approach We use World Bank survey data collected immediately before and after the COVID-19 outbreak and a generalized structural equation model to examine the mediating role of government support in the relationship between firm innovation, resilience and survival. Findings Innovative SMEs exhibited higher resilience and a better chance of survival during the pandemic, partly due to attracting more government support. Originality/value This study offers a novel understanding of the government’s role in supporting innovative SMEs during the pandemic. The findings have implications for how government support policies can limit the deadweight effect and the substitution effect.

Purpose Expected returns and risk are critical variables in financial analysis. This study demonstrates that investors’ perceptions of these factors are shaped not only by fundamental economic variables, as traditional finance suggests but also by psychological states such as distress and mood. Design/methodology/approach Data from Thai investors were collected through an online survey. We used regression and logistic regression to test the hypotheses. Findings Positive moods increase perceptions of expected returns and risk, while negative moods reduce these perceptions. Higher depression levels negatively impact investors’ perceptions of expected risk. Investors’ mood intensity, especially negative moods and higher depression levels, negatively impacts risk perception in the short term. Additionally, negative moods decrease the likelihood of optimism toward risk perception in the long term. Practical implications Financial advisors and investment firms can enhance their services by integrating psychological assessments into their client evaluations. Such assessments must be handled with great care, ensuring that clients give explicit consent and that their psychological data are protected in accordance with ethical standards. This approach allows for a deeper understanding of clients’ emotional and psychological states, leading to more personalized investment strategies. Additionally, investment firms can develop tailored products that address investors’ emotional and psychological needs, promoting more balanced decision-making and improving overall satisfaction. Originality/value We assess perceptions of expected returns and risk by collecting data directly from investors. We also evaluate investors’ psychological traits and moods with widely recognized psychological tools, including the Patient Health Questionnaire-9 and the Positive and Negative Affect Schedule.

Purpose It has been demonstrated in the US market that expected market excess returns can be predicted using the average higher-order moments of all firms. This study aims to empirically test this theory in emerging markets. Design/methodology/approach Two measures of average higher moments have been used (equal-weighted and value-weighted) along with the market moments to predict subsequent aggregate excess returns using the linear as well as the quantile regression model. Findings The authors report that both equal-weighted skewness and kurtosis significantly predict subsequent market returns in two countries, while value-weighted average skewness and kurtosis are significant in predicting returns in four out of nine sample markets. The results for quantile regression show that the relationship between the risk variable and aggregate returns varies along the spectrum of conditional quantiles. Originality/value This is the first study that investigates the impact of third and fourth higher-order average realized moments on the predictability of subsequent aggregate excess returns in the MSCI Asian emerging stock markets. This study is also the first to analyze the sensitivity of future market returns over various quantiles.

Purpose The purpose of this study is to examine the financial autonomy that affects the financial accounting information quality of public organizations. This study also tests the impact of the financial autonomy on support from leadership. How this impact has affected elements of accounting information systems such as hardware, software, communications technology and chief accountant to support providing the quality of the financial accounting information. Design/methodology/approach The research model is in the SEM form and measurement models are reflective scales so this study applies the PLS-SEM analysis technique on the Smart PLS 3.2.7 software to test the research hypotheses. Analytical data is collected through survey questionnaires with observed variables measured using the typical 7-point Likert scales. The result obtained after cleaning the data includes 164 Vietnamese public organizations with the different levels of the financial autonomy. Findings This research has three primary findings: firstly, FA has a positive direct effect on FAIQ and SL. Secondly, SL influences FAIQ through four mediate variables including AM, HW, SW and CN. Finally, SL also acts as a mediate variable in the relationship of FA and FAIQ. Originality/value This is one of the first empirical studies to examine the role of financial autonomy in leadership support to improve the quality of the accounting information in the public sector in the context of the Vietnamese government is promoting the financial autonomy of public organizations.