It is demonstrated theoretically why ROE, ROA, and Tobin’s Q aren’t good measures of corporate financial performance for ESG criteria. Essentially due to E, S, and G criteria affecting productivity and debt costs, this causes measurement error in the dependent variables of regressing ROE,...

We study the equilibrium effects of the "S" dimension of ESG in a model of imperfect competition in labor (and product) markets. All else equal, a profit maximizing firm can benefit from adopting ESG policies that give a competitive edge in attracting workers; "Doing Well by Doing Good" applies...

The current study proposes an integrated theoretical frame work, to explain the moderating role of institutional investors, their investment horizon and corporate governance mechanism in the sustainability of corporate social responsibility (CSR) and firm’s performance nexus. The proposed...

Previous studies of the impact of M&A on performance have employed a range of measures of “profitability” or “rate of return”. Sometimes they have provided little in the way of rationalization; and sometimes the most appropriate measures have not been deployed for testing the chosen...

This paper explores approaches to measure the performance of the internal audit function. Based upon three proposed dimensions of formal internal audit performance - material performance, cost and risk - it uses competence research methodology to characterize and structure internal audit...

The aggregation of multiple metrics of corporate social performance (CSP) poses one of the major problems in CSP research. In this paper we propose a new method to compute a composite indicator of CSP from an efficiency perspective using data envelopment analysis (DEA). The new approach makes it...