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The energy sector in Vietnam has developed rapidly as the country is transitioning to renewable energy. Moreover, the Vietnamese government also motivates the engagement of private investors in the energy sector to enhance the competitiveness of the energy market. Therefore, this paper investigates how innovation investments and ownership concentra...
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... we regress three models using the FEM estimation to test the impact of independent variables on financial sustainability. Table 3 reports that INI has negative efficiency with financial sustainability, but the relationship is statistically insignificant. ...Similar publications
Research aims: This study examines the relationship between political connections and family ownership toward CSR activities disclosure.
Design/Methodology/Approach: This study employed 624 Indonesian public companies on the Global Reporting Initiative (GRI) list for 2010-2018. The researchers used OLS (Ordinary Least Squares) regression by conside...
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... In this regard, many studies reported a positive association between short-term borrowing and business sustainability. In contrast, a stream of the literature contended that short-term loans might expose MSMEs to financial instability when creditors cannot roll over such loans (Abereijo & Fayomi, 2005;Dang et al., 2022;Kong et al., 2023). Hence, MSMEs may need to secure long-term loans for sustainable growth. ...
... The finding implies that as short-term borrowing increases, financial sustainability may decrease. The outcome supports prior studies that argued that short-term loans might expose firms to financial instability when creditors cannot roll over such loans (Abereijo & Fayomi, 2005;Dang et al., 2022;Kong et al., 2023). This instance may distort firms' financial conditions, reducing sustainable performance. ...
This study empirically assesses the effect of capital structure on the financial sustainability of micro, small and medium-scale enterprises (MSMEs) in Northeastern Nigeria. Using the fixed effects method, the research analysed panel data of 174 MSMEs across the six (6) states from 2018-2023. Further evidence was provided using the random effect technique. The finding shows that short-term debt negatively influences financial sustainability, while long-term debt financing may lead to sustainable performance. The result implies that MSMEs should prioritise securing long-term borrowing to enhance their performance and attain financial sustainability. Policymakers and regulators should not relent in providing long-term financing opportunities to MSMEs for consistent growth.
... Moreover, (Sheng & An, 2024) explained that environmental uncertainty negatively impacts sustainability financial performance. Lastly, the study from (Dang et al., 2022) shows that innovation positively improves financial sustainability, even just as innovation and investment show that block ownership affects the sustainable development of smaller energy companies. In comparison, innovation investment significantly improves the sustainability of larger energy companies. ...
Many industries in Indonesia do not share profits in the form of dividends with investors, which affects the value of the company. This condition really determines the investor's decision to invest in the future as a reaction to the company's dividend policy. The study is aimed at analyzing the dividend policy in relation to investor behaviour and its impact on the value of a firm with financial stability as a moderate variable. This study uses 360 IDX-listed businesses from 2018 to 2022 for properties. Smart PLS was used to test the model. The study shows that the dividend policy affects the value of the company, but does not affect the behaviour of investors. However, financial stability has a negative impact on the dividend policy and the value of the company. In addition, financial stability cannot mitigate the relationship between the dividend policy and the value of the firm; Conversely, economic resilience can mitigate investor behavior and affect a firm's value. The article emphasizes that managers who develop dividend policy, that managers who develop dividend policy should pay attention to the behaviour of investors, as this can be a positive signal for the future value of the company.
... The study mentioned that sustainable growth rate (SGR) is a very important measure to test the financial sustainability of firms. Duong et al. (2022) studied how the concentration of innovation and ownership affect the financial sustainability of Vietnam energy enterprises. The sample included six hundred observations of 103 energy companies during the period from 2007 to 2020. ...
... Ref. [21] emphasizes the importance of innovative financial strategies in helping crisis enterprises navigate economic downturns and maintain solvency. Ref. [22] finds that energy firms in transition economies with concentrated ownership and innovative practices are more likely to achieve financial sustainability. Ref. [23] demonstrates that strong corporate governance enhances the stability benefits of financial innovation. ...
This study analyses the relationship between non-performing loans (NPLs) and innovation systems at a global level. The data were obtained from the World Bank and the Global Innovation Index over the period 2013-2022 for 149 countries. The k-means algorithm was used to verify the presence of clusters in the data. Since k-means is an unsupervised machine-learning algorithm, we compared the Silhouette coefficient with the Elbow method to find an optimization. The results show that the optimal number of clusters is three, as suggested using the Elbow Method. Furthermore, a panel data analysis was conducted. Results show that the level of NPLs is positively associated with cultural and creative services exports as a percentage of total trade and innovation input sub-index and negatively associated with the Hirsch Index, ICT services exports as a percentage of total trade, ICT services imports as a percentage of total trade, and information and communication technologies.
... This study explores how family ownership determines the relationships among board gender, foreign directorship, and financial sustainability. Corporate sustainability practices have received much attention because of their crucial link to organizational survival [1][2][3]. Financial sustainability is a business approach that focuses on long-term value creation to benefit diverse interests [4,5]. It is about generating substantial revenue to satisfy future financial commitments. ...
... According to this view, when corporate boards are composed of different individuals, there is a greater chance of drawing different resources from the external environment [41,42]. It is argued that foreign directors and women board members may serve as valuable sources of gaining essential resources for sustainable performance [3,20]. Specifically, the literature has shown that women on boards may bring new perspectives and innovative ideas because of their accommodative attitudes and other exceptional behaviors [43,44]. ...
This study investigates how family ownership may influence the effects of board gender and foreign directorship on the financial sustainability. The panel data of 103 Saudi non-financial listed companies from 2013 to 2022 was analyzed using fixed effects, and the generalized method of moments (GMM) was used for robustness test. The research findings suggest a strong and positive effect of foreign directorship on financial sustainability, consistent with the resource dependency view and agency theory. However, board gender exerts a negative and significant influence, contradicting existing theories. Further, the moderation results show that family ownership positively moderates the effects of both board gender and foreign directorship on financial sustainability. This positive moderating result supports the agency theory's argument that robust and stringent monitoring of corporate ownership may complement boards' functions and boost organizational efficiency. The policy decision of the findings is that setting corporate boards with a considerable ratio of foreign directors may lead to sustainable performance. Also, it implies that family ownership seems to be an essential mechanism that can neutralize the adverse effects of boardroom diversity on outcomes.
... The aim of this study is to examine the relationship between board financial expertise and financial sustainability. The issue is topical because there is an increasing concern that corporate bodies need to extensively engage in sustainability practices to promote their image and legitimacy [1,2]. Unsustainable practices negatively impact the environment, society, and firms' performance [3,4]. ...
... Financial sustainability is one of the dimensions of corporate sustainability, and it is gaining momentum due to its direct link to organisational survival. It is about long-term value creation, generation of stable profit, and growth acceleration to meet the different needs of firms' stakeholders [2,3]. The literature reported that financial sustainability focuses on the synergy between the growth strategies and financial policies of companies [6,7]. ...
... Considering the above review, the literature has established a link between board financial expertise and organisational outcomes. Prior studies in this context mostly used sustainability disclosure and dwelled more on gender and board nationality (e.g., [2,3,10,17,[26][27][28][29]). The attention of standard setters and regulatory agencies was drawn to the importance of board financial expertise after the liquidation of several firms across countries [30,31]. ...
This paper evaluates the effects of board financial expertise on the financial sustainability of Saudi non-financial listed companies. The research sampled data from 97 companies covering 2013 to 2022 and analysed the data using different econometric models. The research findings indicated a strong and positive impact of board financial expertise on sustainable performance. This outcome implies that financial sustainability may increase as the number of finance specialists on the board rises. The evidence supports agency framework, resource dependency, and upper echelons theories. These frameworks argue that stringent monitoring, technical advice, and intellectual competence of finance specialists may positively influence organisational outcomes. Practically, the results indicated that Saudi-listed firms should emphasise employing financial specialists on their boards to boost their value and attain sustainable growth. The study may also guide managers and regulators on the relevance of financial experts in promoting sustainable practices.
... Korepanov et al. (2020) focus on managing the financial stability potential of crisis enterprises, highlighting the role of innovative financial strategies in navigating economic downturns and maintaining solvency. Duong et al. (2022) explore how innovation and ownership concentration affect the financial sustainability of energy enterprises in a transition economy. Their findings indicate that firms with concentrated ownership structures and innovative practices are more likely to achieve financial sustainability. ...
... (www.preprints.org) | NOT PEER-REVIEWED | Posted: 6 August 2024 doi:10.20944/preprints202408.0374.v128 ...
The following article analyses the relationship between Non-Performing Loans and innovation systems at a global level. The analysed data were obtained from the World Bank and the Global Innovation Index for the period 2013-2022 for 149 countries. The analysis was conducted using clustering with the k-Means algorithm, optimized with the Silhouette coefficient and the Elbow method. Subsequently, econometric analysis was carried out using panel data with Random Ef-fects and Fixed Effects. The clustering results show that the optimal number of clusters is three. The econometric analysis highlights the positive relationship between Non-Performing Loans, the exports of cultural and creative services, and the Innovation Input Sub-Index. The results also show the negative relationship between Non-Performing Loans, the H-Index, and the exports and imports of ICT services.
... Recent research suggests that combining digital twin and blockchain technologies will likely significantly change supply chain management. This convergence can redefine industry norms by promoting innovation and sustainability (Duong et al., 2022). ...
... The approach expanded to include statistical analysis conducted after data gathering. The study employed the PLS technique, as described by Duong et al. (2022), to examine the entire collinearity VIF of the latent variables. The comprehensive results are shown in Table 1, which shows the CMB test findings using internal VIF coefficients for important latent variables. ...
In the era of Industry 5.0, characterized by the seamless collaboration between humans and machines, the integration of digital twin technology (DTT) and blockchain technology (BCT) is poised to revolutionize supply chain management. This research explores the impact of DTT and BCT on achieving sustainable and efficient supply chain operations. Digital twins, virtual replicas of physical systems, enable real-time analysis and simulations, enhancing decision-making and operational efficiency. Simultaneously, blockchain technology ensures transparency and security in supply chains by maintaining unchangeable transaction records. This paper delves into the advantages and challenges presented by these technologies, examining real-world case studies across various industries. The study reveals that the combination of DTT and BCT creates a symbiotic relationship, driving continuous monitoring and validation of supply chain processes. This integration aligns with global sustainability goals, emphasizing resource optimization and waste reduction. However, data privacy, scalability, and interoperability remain significant barriers. A comprehensive approach is advocated to overcome these challenges, emphasizing ethical and environmental norms. Furthermore, this research offers insights into the mediating role of sustainable supply chain management (SSCM) practices and dynamic capabilities in the relationship between Industry 5.0 technologies and operational resource utilization (ORU) performance. It highlights the need for a sophisticated strategy in implementing technology adoption initiatives. This study contributes to theoretical advancements in Industry 5.0 by elucidating the complex interactions between DTT, BCT, and SSCM, paving the way for future research. Additionally, it provides valuable policy implications, guiding policymakers to prioritize innovation, transparency, and sustainability in the industrial sector. Integrating DTT and BCT can reshape supply chain dynamics, fostering a future marked by efficiency, innovation, and environmental responsibility.
... The large shareholder may use its power to obtain what Grossman and Hart (1980) label 'private benefits of control' at the expense of the minority shareholders (Villalonga et al. 2019). Controlling shareholders also influence sustainability decisions, strategies, and performance, and they may focus more on sustainability practices to enhance the firm's reputation in the long term (Duong et al. 2022;Lin and Nguyen 2022). However, the presence of large shareholders might also generate agency problems as they can use their power to reduce environmental and social sustainability practices that decrease the firm's value (Chen et al. 2021). ...
... Innovation not only brings profits and an improved image to the companies but also contributes to improving their long-term financial stability. This phenomenon is identified and described by Duong et al. (2023) [68], based on the example of Vietnamese companies. Furthermore, the researchers find that the favorable impact of innovation efficiency on financial stability takes place in larger energy companies, whereas a concentration of ownership improves sustainable development in smaller ones. ...
Analysis of the energy sector from the micro perspective that relates to individual companies is much rarer than a macroeconomic analysis that concerns the power industry as a whole and its impact on the functioning of the economy. However, energy companies directly implement the government’s energy policies and innovation strategies. Thus, this article attempts to answer the question concerning the relationships in three large energy companies operating in Poland (1) between the use of renewable resources for production and the innovative nature of a company, (2) between the use of renewable energy sources and the standing on the stock exchange and profitability. This study used multiple case studies, financial analysis indicators, a time series analysis, and an interdependence analysis. This study covers 2011–2022 and allows consideration of long-term changes in domestic energy policy. Our findings suggest that there is a relationship between a company’s investment activity and the use of renewable energy sources. Unfortunately, the scope of the use of RESs in these companies is small (from ca. 1% to 15%, which demonstrates the low progress of green transformation) and has negative correlations with the investors’ assessment and profitability. In relation to innovation, the ratio of intangible assets to total assets was the highest for Tauron SA, increasing from 1.96% to 5.16%. Its material commitment to innovation is distinguishable from the other two companies. This is also the company with the highest share of RESs in energy production. The second place belongs to Enea SA with its ratio of intangible assets to total assets that increased from 0.72% to 1.69%. The ratio was lowest for PGE SA, increasing from 0.37% to 1.47%. The results and standing of the analyzed energy companies are strongly affected by energy policy amendments, including the improved status of coal and the re-oriented use of RESs (prioritizing solar energy over wind). As a result, these companies, despite the twelve-year period of the implementation of green transformation in the European Union, have achieved little on the path to sustainable energy. Therefore, achieving the goal of a zero-emission economy seems unlikely, since the renewable energy mix is still very slight and not diversified. Changes in energy policy are also not conducive to sectoral and economic innovation.
