Effect of Corporate Sustainability Policy on ESG Performance of Agri-Food Companies in Taiwan
Keywords:
agriculture and agri-food chain, ESG performance, DiD, institutional isomorphismAbstract
The Financial Supervisory Commission (FSC) in Taiwan enforced an ESG policy in 2018, requiring listed companies to disclose sustainability reports. Using the Taiwan Economic Journal (TEJ) database and a DiD model, this study examines how the ESG performance of these companies changed due to the sustainability reporting policy. Results show improved ESG performance, attributed to organizational behaviors of legal compliance and imitation. The study suggests the need for ESG policies to focus not just on increasing sustainability reports but also on incorporating robust disclosure indicators for high-quality reports.
Downloads
References
Adelodun, Bashir, Kareem, Kola Yusuff, Kumar, Pankaj, Vinod, Kumar, Choi, Kyung Sook, Yadav, Krishna. Kumar, Yadav, Akanksha, El-Denglawey, A., Carbral-Pinto, Marina, Son, Cao Truong, Krishnan, Santhana, & Khan, Nadeem A. 2021. Understanding the impact of the COVID-19 pandemic on sustainable agri-food system and agroecosystem decarbonization nexus: A review. Journal of Cleaner Production 318: 128451.
Alvarez, Jaramillo, J., Zartha Sossa, J.W. & Orozco Mendoza, G. L. 2019. Barriers to sustainability for small and medium enterpeises in the framework of sustainable development-Literature review. Business Strategy and the Environment 28(4): 512-524.
Bakos, Joseph, Siu, Mechele, Orengo, Adalberto, & Kasiri, Narges. 2019. An analysis of environmental sustainability in small & medium-sized enterprises: patterns and trends. Business Strategy and the Environment 29(3): 1285-1296.
Broadstock, David C., Chan, Kalok, Cheng, Louis T.W., & Wang, Xiaowei. 2021. The role of ESG performance during times of financial crisis: Evidence from COVID-10 in China. Finance Research Letters 38: 101716.
Caravella, K. D. (2011). Mimetic, coercive, and normative influences in institutionalization of organizational practices: The case of distance learning in higher education. Florida Atlantic University.
Chen, H. Y., Guo, R., Hung, C. C., Lin, Z. H., & Wu, M. (2023). Behavioral Intentions of Bank Employees to Implement Green Finance. Sustainability, 15(15), 11717.
Daugaard, Dan, & Ding, Ashley. 2022. Global drivers for ESG performance: The. body of knowledge. Sustainability, 14: 2322.
Dimaggio, Paul J., & Powell, Walter W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2): 147-160.
Financial Supervisory Commission (2022). Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies (TSEC SR-Rules)
Garsaa, Aziza, & Paulet, Elisabeth. (2022). ESG disclosure and employee turnover. New evidence from listed European companies. Industrial Relations 77(4): 1-22.
Gyönyörová, L., Stachoň, M., & Stašek, D. (2023). ESG ratings: relevant information or misleading clue? Evidence from the S&P Global 1200. Journal of Sustainable Finance & Investment, 13(2), 1075-1109.
Hwang, Juhee, Kim, Hyuna, & Jung Dongjin. 2021. The effect of ESG activities on financial performance during the COVID-19 pandemic – Evidence from Korea. Sustainability 13: 11362.
International Finance Corporation. (2005). Who cares wins 2005 conference report: Investing for long-term value. International Finance Corporation.
Kao, L. L. (2023). ESG-Based Performance Assessment of the Operation and Management of Industrial Parks in Taiwan. Sustainability, 15(2), 1424.
Kuan, M. Y., Wang, S. Y., & Wang, J. H. (2021). Investigating the association between farmers’ organizational participation and types of agricultural product certifications: Empirical evidence from a national farm households survey in Taiwan. Sustainability, 13(16), 9429.
Lee, C. Christopher, Luppi, Joley L., Simmons, Tyler, Tran, Bao, & Zhang, Ruoqing. 2023. Examining the impacts of ESG on employee retention: A study of generational differences. Journal of Business and Management 29(1): 1-22.
Lin, Feng-Jyh, & Lai, ChihuFeng. 2021. Key factors affecting technological capabilities in small and medium-sized enterprises in Taiwan. International Entrepreneurship and Management Journal 17: 131-143.
Lin, Y. H., Lee, C. H., & Fang, S. Y. (2023). Environmental, Social and Governance (ESG) Initiatives and Developments in Taiwan. In Financial and Technological Innovation for Sustainability (pp. 165-187). Routledge.
Ministry of Agriculture. 2022. Agriculture and Agri-food Chain Statistics (2022). https://agrstat.moa.gov.tw/sdweb/public/book/Book.aspx.
Nguyen, Duy Thanh, Hoan, Gia Thinh, & Tran, Hue Gia. 2022. Help or hurt? Impact of ESG on firm performance in S&P 500 Non-Financial firms. Australasian Accounting, Business and Finance Journal 16(2): 91-102.
Nugrahani, Tri Siwi, Kusuma, Hadri, Arifin, Johan, & Muhammad, Rifqi. 2023. Determining factors of sustainability report using the institutional isomorphism theory approach. Jurnal Akuntansi dan Auditing Indonesia, 27(1): 1-10.
Pinheiro, C. (2023). Environmental, Social, and Governance (ESG) Reporting and Brazilian Agriculture: Constraints and Opportunities to Sustainability. In Sustainability Challenges of Brazilian Agriculture: Governance, Inclusion, and Innovation (pp. 249-269). Cham: Springer International Publishing.
Posadas, Stefanía Carolina, Ruiz-Blanco, Slivia, Fernandez-Feijoo, Belen, & Tarquinio, Lara. 2023. Institutional isomorphism under the test of Non-financial Reporting Directive. Evidence from Italy and Spain. Meditari Accountancy Research, 31(7): 26-48.
Roszkowska-Menkes, Maria, & Aluchna, Maria. 2018. Institutional isomorphism and corporate social responsibility: Towards a conceptual model. Journal of Positive Management 8(2): 3-16.
Shelman, Mary, & McLoughlin, Damien. 2020. The unanticipated promise of sustainable agricultural supply chains. International Journal of Food System Dynamics.
Shu, Pei-Gi, & Chiang, Sue-Jane. 2020. The impact of corporate governance on corporate social performance: Cases from listed firms in Taiwan. Pacific-Basin Finance Journal 61: 101332.
Taiwan Economic Journal (TEJ). 2023. TESG Sustainable Development Indicator Technical Manual. Taiwan Economic Journal Co., Ltd.
Tsolakis, Naoum K., Christos A. Keramydas, Agorasti K. Toka, Dimitrios A. Aidonis, & Eleftherios T. Iakovou. 2013. Agrifood supply chain management: A comprehensive hierarchical decision – making framework and a critical taxonomy. Biosystems Engineering 120: 47-64.
Yang, Yachi. 2015. An Overview of the International Development Trends in Corporate Social Responsibility and the Current Initiatives in Taiwan. Securities & Futures Monthly, 33(1): 5-15.
Zhou, Guangyou, Liu, Lian, & Luo, Sumei. 2022. Sustainable development, ESG performance and company market value: Mediating effect of financial performance. Business Strategy and the Environment 31(7): 3371-3387.
Downloads
Published
Conference Proceedings Volume
Section
License
Copyright (c) 2024 Yu-Jie Zhao, Jiun-Hao Wang, Szu-Yung Wang (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
