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Interplay between environmental, social and governance coordinates and the financial performance of agricultural companies

Author

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  • Marilen Gabriel Pirtea

    (Department of Finance, Faculty of Economics and Business Administration, West University of Timişoara, Timişoara, Romania)

  • Graţiela Georgiana Noja

    (Department of Marketing and International Economic Relations, Faculty of Economics and Business Administration, West University of Timişoara, Timişoara, Romania)

  • Mirela Cristea

    (Department of Finance, Banking and Economic Analysis, Center for Economic, Banking and Financial Research (CEBAFI), Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania)

  • Mirela Panait

    (Department of Cybernetics, Economic Informatics, Finance and Accounting, Faculty of Economic Sciences, Petroleum-Gas University of Ploiesti, Ploiesti, Romania
    Institute of National Economy, Romanian Academy, Bucharest, Romania)

Abstract

On the complex framing of the agricultural fields, related to the corporate social responsibility (CSR), the general objective of this paper is to assess the impacts of environmental, social and governance (ESG) credentials of CSR and human capital features on the financial performance of agricultural companies. The data consists of a sample of 412 public companies from the Thomson Reuters Eikon database, with data for 2020, operating in 17 agricultural areas with headquarters allocated around the world. The methodological endeavor embeds two econometric procedures, multifactorial models of robust regression and structural equation modelling (SEM). The research results bring new evidence to underline the risks related to the sustainability of the financial performance of agricultural companies and the decisive role played by the ESG dimensions to counteract these risks, particularly by the environmental pillar, along with CSR specific strategies and human capital characteristics (management board and employees). We propose several strategies for companies operating in agricultural fields in order to enhance profitability by CSR measures.

Suggested Citation

  • Marilen Gabriel Pirtea & Graţiela Georgiana Noja & Mirela Cristea & Mirela Panait, 2021. "Interplay between environmental, social and governance coordinates and the financial performance of agricultural companies," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(12), pages 479-490.
    • Handle: RePEc:caa:jnlage:v:67:y:2021:i:12:id:286-2021-agricecon
    DOI: 10.17221/286/2021-AGRICECON
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    References listed on IDEAS

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    1. Abraham K. Song, 2019. "The Digital Entrepreneurial Ecosystem—a critique and reconfiguration," Small Business Economics, Springer, vol. 53(3), pages 569-590, October.
    2. Anna BRZOZOWSKA & Dagmara BUBEL & Antonina KALINICHENKO & Larysa NEKRASENKO, 2017. "Transformation of the agricultural financial system in the age of globalisation," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(12), pages 548-558.
    3. Levkivska, Larysa & Levkovych, Inna, 2017. "Social responsibility in Ukrainian agriculture: the regional issue," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(1), pages 97-114.
    4. repec:eme:jadeep:jadee-10-2020-0247 is not listed on IDEAS
    5. Larysa LEVKIVSKA & Inna LEVKOVYCH, 2017. "Social responsibility in Ukrainian agriculture: the regional issue," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 97-114, June.
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    Cited by:

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    2. Anrafel de Souza Barbosa & Maria Cristina Crispim & Luiz Bueno da Silva & Jonhatan Magno Norte da Silva & Aglaucibelly Maciel Barbosa & Sandra Naomi Morioka, 2024. "How can organizations measure the integration of environmental, social, and governance (ESG) criteria? Validation of an instrument using item response theory to capture workers' perception," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3607-3634, May.

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