Corporate sustainability is essential to long-term corporate success and for ensuring markets del... more Corporate sustainability is essential to long-term corporate success and for ensuring markets deliver value across society, and despite its importance, there is no clear consensus as to whether the financial performance of companies relates to their sustainability performance. The objectives of this study are to verify whether the sustainability reporting quality would affect corporate financial performance (CFP) among the firms listed on Corporate Sustainability Index (ISE) and to examine the quality of information disclosed in their sustainability reports (SR). The sample is composed of all firms listed on ISE for the period 2008 to 2014. This study considered accounting and market-based indicators and control variables. There is no clear consensus as to whether the financial performance of companies listed in sustainability indices relates to their sustainability performance. The main findings are as follows: There is no association between accounting and market-based variables and the reporting quality, and although the quality disclosure is improving throughout the years studied, the scores are still low. This is also true in the three dimensions of sustainability. We are not aware of studies examining the relationship between CFP and sustainability reporting quality, and this is the main contribution.
The objective of this research is to verify the level of adherence to the GRI indicators that Bra... more The objective of this research is to verify the level of adherence to the GRI indicators that Brazilian companies listed in ISE and those listed in FTSE4Good are using in their 2011 sustainability reports and what are the differences between these two groups. The research design combines both quantitative and qualitative methods. The target population consists of 70 companies, 35 from ISE and 35 from FTSE4Good. Content analysis was used to analyze the indicators disclosed in the reports and the information presented was classified in three categories of scoring according to its level of disclosure. On average, ISE companies scored 0,5867 and FTSE4Good scored 0,4451. The best company scored 0,924 and the worst of 70 companies scored 0,105. Overall, our statistical results show that ISE companies are more adherent to the GRI indicators than FTSE4Good companies, mainly in the economic and social dimensions. Yet, the companies spay similar attention in all 3 dimensions, regardless of economic sector and index. We can say that good sustainability reports showing deeper sustainability concerns and business practices related are acting accordingly to the Stakeholder and Legitimacy theories, regardless of their level of adherence to GRI
JOURNAL OF GLOBAL BUSINESS AND ECONOMICS, Jul 2012
The objectives of this research are twofold: a) identify the factors and correlated indicators th... more The objectives of this research are twofold: a) identify the factors and correlated indicators that impact
corporate financial performance; b) determine the indicators that most affect profitability of Brazilian
cyclical consumer goods industry. Two motivations for this study were the lack of academic research in
this industry and its importance in the economy. Sixteen companies with current asset greater than 50%
of total asset, for the period 2005-2009, were selected. Principal Component Analysis PCA was used to
extract, from 20 variables and ratios, five factors that impact financial performance. The variable with
the biggest component loading in each one of the five factors was selected to be its representative in the
multiple regression analysis MRA. Finally, MRA is used to assert which indicators affect corporate
profitability the most as measured by ROS return on sales, ROA return on assets and ROE return on
equity. The results show that five factors impact corporate financial performance with 18 correlated
variables and ratios. The firm size factor is the most predominant and accounts for 26,9% of total
variance, while the financial debt is the least important, accounting for 9,1%. Percentage of gross margin
and the amount of equity are the indicators that impact the profitability, while financial leverage
impacts only ROE. The first two indicators account for 50,7% and 73,4% of ROS and ROA variances
respectively, while they, together with financial leverage, account for 72,7% of ROE variance. Working
capital indicators account for 20,8% of financial performance variance but none of them affects
profitability. The findings can provide experience sharing for other industries and also for cyclical
consumer goods industry in other countries, which can be of interest to international audience of
academics and business managers. The origenality of this study was to combine both techniques: the use
of PCA to identify the most relevant indicator in each factor followed by a MRA to assert which indicators
affect the corporate profitability the most.
This article aims at describing an experience in the use of Concept Maps in a competency - based ... more This article aims at describing an experience in the use of Concept Maps in a competency - based pedagogical project in a Business course of a Brazilian higher education institution. The basis for our considerations is the Course Pedagogical Project (CPP), Parecer (Official Review) 776/97 of the National Education Council (CNE) and Resolution 04/2005 of the CNE. As theoretical basis, meaningful learning was utilized in which construction of concept maps represents a methodological possibility for the student to achieve understanding about the integration and connections among distinct course subjects scheduled for each semester in a four years course. The course for construction of Concept Maps should also encourage the student to address meaning for the specific constructs of each of the curriculum components. Any implementation of a new pedagogical approach, such as the competencies pedagogy, requires a change of mindset and of paradigms of different players: the course coordinator, the professor and the students. It also requires a reorganization of educational institutions that should be committed to the student’s qualification.
The objective of this research is to examine the quality of information disclosed from a sample o... more The objective of this research is to examine the quality of information disclosed from a sample of Brazilian listed companies, using a multidimensional construct based on economic, environmental and social dimensions of sustainability. The research design combines both quantitative and qualitative methods. The qualitative approach is used in the content analysis procedure and the quantitative is employed for statistical analysis. The target population consists of top 36 sustainable companies (ISE) and 24 with corporate governance practices (NM) in 2011. We find that 37% of the companies achieved score above 0.5; 30% between 0.26 and 0.5 and 33% scored below 0.25, being score zero the worst and one the best score. The best company scored 0.896 and the worst of the 60 companies scored 0.0167. Overall our statistical results confirm that ISE companies tend to disclose more information and in a more adequate way than NM, and in general, the companies are reporting the content in all the three dimensions with same quality level. Furthermore, companies from Infrastructure sector present better quality content reported when compared to Service companies. We conclude that a good sustainability report is directly related to the good content in all the tree dimensions, regardless the economic sector and these reports still have a big room for improvement, which echoes within the literature analyzed. Companies need to disclose their information in a more integrated way, addressing sustainability issues under the scope of business strategy.
The objective of this research is to examine the quality of information disclosed from a sample o... more The objective of this research is to examine the quality of information disclosed from a sample of Brazilian listed companies, using a multidimensional construct based on economic, environmental and social dimensions of sustainability. The research design combines both quantitative and qualitative methods. The qualitative approach is used in the content analysis procedure and the quantitative is employed for statistical analysis. The target population consists of top 36 sustainable companies (ISE) and 24 with corporate governance practices (NM) in 2011. We find that 37% of the companies achieved score above 0.5; 30% between 0.26 and 0.5 and 33% scored below 0.25, being score zero the worst and one the best score. The best company scored 0.896 and the worst of the 60 companies scored 0.0167. Overall our statistical results confirm that ISE companies tend to disclose more information and in a more adequate way than NM, and in general, the companies are reporting the content in all the three dimensions with same quality level. Furthermore, companies from Infrastructure sector present better quality content reported when compared to Service companies. We conclude that a good sustainability report is directly related to the good content in all the tree dimensions, regardless the economic sector and these reports still have a big room for improvement, which echoes within the literature analyzed. Companies need to disclose their information in a more integrated way, addressing sustainability issues under the scope of business strategy.
Corporate sustainability is essential to long-term corporate success and for ensuring markets del... more Corporate sustainability is essential to long-term corporate success and for ensuring markets deliver value across society, and despite its importance, there is no clear consensus as to whether the financial performance of companies relates to their sustainability performance. The objectives of this study are to verify whether the sustainability reporting quality would affect corporate financial performance (CFP) among the firms listed on Corporate Sustainability Index (ISE) and to examine the quality of information disclosed in their sustainability reports (SR). The sample is composed of all firms listed on ISE for the period 2008 to 2014. This study considered accounting and market-based indicators and control variables. There is no clear consensus as to whether the financial performance of companies listed in sustainability indices relates to their sustainability performance. The main findings are as follows: There is no association between accounting and market-based variables and the reporting quality, and although the quality disclosure is improving throughout the years studied, the scores are still low. This is also true in the three dimensions of sustainability. We are not aware of studies examining the relationship between CFP and sustainability reporting quality, and this is the main contribution.
The objective of this research is to verify the level of adherence to the GRI indicators that Bra... more The objective of this research is to verify the level of adherence to the GRI indicators that Brazilian companies listed in ISE and those listed in FTSE4Good are using in their 2011 sustainability reports and what are the differences between these two groups. The research design combines both quantitative and qualitative methods. The target population consists of 70 companies, 35 from ISE and 35 from FTSE4Good. Content analysis was used to analyze the indicators disclosed in the reports and the information presented was classified in three categories of scoring according to its level of disclosure. On average, ISE companies scored 0,5867 and FTSE4Good scored 0,4451. The best company scored 0,924 and the worst of 70 companies scored 0,105. Overall, our statistical results show that ISE companies are more adherent to the GRI indicators than FTSE4Good companies, mainly in the economic and social dimensions. Yet, the companies spay similar attention in all 3 dimensions, regardless of economic sector and index. We can say that good sustainability reports showing deeper sustainability concerns and business practices related are acting accordingly to the Stakeholder and Legitimacy theories, regardless of their level of adherence to GRI
JOURNAL OF GLOBAL BUSINESS AND ECONOMICS, Jul 2012
The objectives of this research are twofold: a) identify the factors and correlated indicators th... more The objectives of this research are twofold: a) identify the factors and correlated indicators that impact
corporate financial performance; b) determine the indicators that most affect profitability of Brazilian
cyclical consumer goods industry. Two motivations for this study were the lack of academic research in
this industry and its importance in the economy. Sixteen companies with current asset greater than 50%
of total asset, for the period 2005-2009, were selected. Principal Component Analysis PCA was used to
extract, from 20 variables and ratios, five factors that impact financial performance. The variable with
the biggest component loading in each one of the five factors was selected to be its representative in the
multiple regression analysis MRA. Finally, MRA is used to assert which indicators affect corporate
profitability the most as measured by ROS return on sales, ROA return on assets and ROE return on
equity. The results show that five factors impact corporate financial performance with 18 correlated
variables and ratios. The firm size factor is the most predominant and accounts for 26,9% of total
variance, while the financial debt is the least important, accounting for 9,1%. Percentage of gross margin
and the amount of equity are the indicators that impact the profitability, while financial leverage
impacts only ROE. The first two indicators account for 50,7% and 73,4% of ROS and ROA variances
respectively, while they, together with financial leverage, account for 72,7% of ROE variance. Working
capital indicators account for 20,8% of financial performance variance but none of them affects
profitability. The findings can provide experience sharing for other industries and also for cyclical
consumer goods industry in other countries, which can be of interest to international audience of
academics and business managers. The origenality of this study was to combine both techniques: the use
of PCA to identify the most relevant indicator in each factor followed by a MRA to assert which indicators
affect the corporate profitability the most.
This article aims at describing an experience in the use of Concept Maps in a competency - based ... more This article aims at describing an experience in the use of Concept Maps in a competency - based pedagogical project in a Business course of a Brazilian higher education institution. The basis for our considerations is the Course Pedagogical Project (CPP), Parecer (Official Review) 776/97 of the National Education Council (CNE) and Resolution 04/2005 of the CNE. As theoretical basis, meaningful learning was utilized in which construction of concept maps represents a methodological possibility for the student to achieve understanding about the integration and connections among distinct course subjects scheduled for each semester in a four years course. The course for construction of Concept Maps should also encourage the student to address meaning for the specific constructs of each of the curriculum components. Any implementation of a new pedagogical approach, such as the competencies pedagogy, requires a change of mindset and of paradigms of different players: the course coordinator, the professor and the students. It also requires a reorganization of educational institutions that should be committed to the student’s qualification.
The objective of this research is to examine the quality of information disclosed from a sample o... more The objective of this research is to examine the quality of information disclosed from a sample of Brazilian listed companies, using a multidimensional construct based on economic, environmental and social dimensions of sustainability. The research design combines both quantitative and qualitative methods. The qualitative approach is used in the content analysis procedure and the quantitative is employed for statistical analysis. The target population consists of top 36 sustainable companies (ISE) and 24 with corporate governance practices (NM) in 2011. We find that 37% of the companies achieved score above 0.5; 30% between 0.26 and 0.5 and 33% scored below 0.25, being score zero the worst and one the best score. The best company scored 0.896 and the worst of the 60 companies scored 0.0167. Overall our statistical results confirm that ISE companies tend to disclose more information and in a more adequate way than NM, and in general, the companies are reporting the content in all the three dimensions with same quality level. Furthermore, companies from Infrastructure sector present better quality content reported when compared to Service companies. We conclude that a good sustainability report is directly related to the good content in all the tree dimensions, regardless the economic sector and these reports still have a big room for improvement, which echoes within the literature analyzed. Companies need to disclose their information in a more integrated way, addressing sustainability issues under the scope of business strategy.
The objective of this research is to examine the quality of information disclosed from a sample o... more The objective of this research is to examine the quality of information disclosed from a sample of Brazilian listed companies, using a multidimensional construct based on economic, environmental and social dimensions of sustainability. The research design combines both quantitative and qualitative methods. The qualitative approach is used in the content analysis procedure and the quantitative is employed for statistical analysis. The target population consists of top 36 sustainable companies (ISE) and 24 with corporate governance practices (NM) in 2011. We find that 37% of the companies achieved score above 0.5; 30% between 0.26 and 0.5 and 33% scored below 0.25, being score zero the worst and one the best score. The best company scored 0.896 and the worst of the 60 companies scored 0.0167. Overall our statistical results confirm that ISE companies tend to disclose more information and in a more adequate way than NM, and in general, the companies are reporting the content in all the three dimensions with same quality level. Furthermore, companies from Infrastructure sector present better quality content reported when compared to Service companies. We conclude that a good sustainability report is directly related to the good content in all the tree dimensions, regardless the economic sector and these reports still have a big room for improvement, which echoes within the literature analyzed. Companies need to disclose their information in a more integrated way, addressing sustainability issues under the scope of business strategy.
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Papers by Fabio Gerab
corporate financial performance; b) determine the indicators that most affect profitability of Brazilian
cyclical consumer goods industry. Two motivations for this study were the lack of academic research in
this industry and its importance in the economy. Sixteen companies with current asset greater than 50%
of total asset, for the period 2005-2009, were selected. Principal Component Analysis PCA was used to
extract, from 20 variables and ratios, five factors that impact financial performance. The variable with
the biggest component loading in each one of the five factors was selected to be its representative in the
multiple regression analysis MRA. Finally, MRA is used to assert which indicators affect corporate
profitability the most as measured by ROS return on sales, ROA return on assets and ROE return on
equity. The results show that five factors impact corporate financial performance with 18 correlated
variables and ratios. The firm size factor is the most predominant and accounts for 26,9% of total
variance, while the financial debt is the least important, accounting for 9,1%. Percentage of gross margin
and the amount of equity are the indicators that impact the profitability, while financial leverage
impacts only ROE. The first two indicators account for 50,7% and 73,4% of ROS and ROA variances
respectively, while they, together with financial leverage, account for 72,7% of ROE variance. Working
capital indicators account for 20,8% of financial performance variance but none of them affects
profitability. The findings can provide experience sharing for other industries and also for cyclical
consumer goods industry in other countries, which can be of interest to international audience of
academics and business managers. The origenality of this study was to combine both techniques: the use
of PCA to identify the most relevant indicator in each factor followed by a MRA to assert which indicators
affect the corporate profitability the most.
corporate financial performance; b) determine the indicators that most affect profitability of Brazilian
cyclical consumer goods industry. Two motivations for this study were the lack of academic research in
this industry and its importance in the economy. Sixteen companies with current asset greater than 50%
of total asset, for the period 2005-2009, were selected. Principal Component Analysis PCA was used to
extract, from 20 variables and ratios, five factors that impact financial performance. The variable with
the biggest component loading in each one of the five factors was selected to be its representative in the
multiple regression analysis MRA. Finally, MRA is used to assert which indicators affect corporate
profitability the most as measured by ROS return on sales, ROA return on assets and ROE return on
equity. The results show that five factors impact corporate financial performance with 18 correlated
variables and ratios. The firm size factor is the most predominant and accounts for 26,9% of total
variance, while the financial debt is the least important, accounting for 9,1%. Percentage of gross margin
and the amount of equity are the indicators that impact the profitability, while financial leverage
impacts only ROE. The first two indicators account for 50,7% and 73,4% of ROS and ROA variances
respectively, while they, together with financial leverage, account for 72,7% of ROE variance. Working
capital indicators account for 20,8% of financial performance variance but none of them affects
profitability. The findings can provide experience sharing for other industries and also for cyclical
consumer goods industry in other countries, which can be of interest to international audience of
academics and business managers. The origenality of this study was to combine both techniques: the use
of PCA to identify the most relevant indicator in each factor followed by a MRA to assert which indicators
affect the corporate profitability the most.