ACADEMIC JOURNAL PAPERS
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
| 2019 | 2018 | 2017 |
2026
Exploring the Role of Digitalization in Enhancing Urban Energy Resilience: Evidence from Chinese Cities
Bingqian Zhang, Heng Ma, Lawrence Loh and Siliang Guo
Abstract
Amid intensifying climate extremes, geopolitical shocks, and market volatility, enhancing energy resilience has become a critical challenge for sustainable urban development. While digitalization is increasingly viewed as a key enabler of resilience, its specific role in enhancing the resilience of urban energy systems, particularly in rapidly developing cities, remains unclear. Using panel data from 298 Chinese cities from 2011 to 2022, this study constructs multidimensional indices for digitalization and energy resilience and empirically examines the impact of digitalization and its mechanisms. The findings provide robust evidence that digitalization significantly enhances urban energy resilience, particularly in western, resource-based, and capital cities. Three mechanisms are identified: reducing energy misallocation, improving digital governance, and promoting green innovation. Moreover, digitalization’s main effect shows a threshold impact on energy resilience, improving resistance, recovery, and regeneration capacities, and generating spatial spillover effects that enhance resilience in neighboring areas. This study underscores the role of digitalization as a strategic resource for cities to better withstand energy shocks and sustain energy security. Ultimately, this study offers both theoretical insights and actionable policy recommendations, highlighting pathways for cities globally to leverage digitalization to enhance energy resilience and accelerate the transition to a low-carbon future.
Cost Outlook of Coal Power with CCS and BECCS Based on a Component Learning Curve Incorporating Efficiency Upgrades: A Case Study of China
Delu Wang, Fan Chen, Chunxiao Li and Lawrence Loh
Abstract
Grasping the cost outlook of CCS and BECSS is crucial for guiding coal power-dependent nations in technological strategy planning and investment decision-making during the low-carbon transition. Given the practical characteristics of technological learning in the coal power sector and the limitations of existing literature in forecasting technology costs, this study adopts a learning rate estimation method that incorporates efficiency upgrade based on the component learning curve approach. Taking China as a case study, it analyzes the future cost trends and economic-environmental benefits of CCS and BECCS from a systematic perspective. The case study results indicate that CCS and BECCS in China exhibit promising cost prospects. Their deployment enhances the overall learning rate of the power generation system, leading to a potential reduction in the cost of electricity (COE) of approximately $23.10 ∼ $55.75/MWh. As technological learning effects accumulate, the economic-environmental benefits of CCS and BECCS in China are expected to improve by more than 50%, with the advantage of CCS and BECCS-equipped technologies becoming increasingly pronounced. Moreover, further analysis reveal that efficiency upgrades play a supporting role, accounting for 30% ∼ 67% of cost reductions, while capital and fuel costs are the primary drivers of COE reduction in CCS and BECCS, jointly contributing 60% ∼ 86% of total cost reductions. The pre-learning value, defined as the threshold at which learning effects begin to materialize, constitutes a critical source of uncertainty influencing the pace of technological cost reduction, while fuel price levels exhibit a positive correlation with the extent to which learning effects are realized. This study provides forward-looking information for coal power system technology strategy planning in China, and offers scientific insights for coal power-dependent nations to accelerate the cost reduction potential of CCS and BECCS.
Using AI Tools to Conduct Investment Research on Emerging Technology
Joshua Arjanto, Chen Xiaojing, Shiyou Hu, Asher Ethan Koh, Muhammad Khaizuran Bin Mohamad Rosle, Lawrence Loh and Tim Zhang
Abstract
This case study examines how large language models (LLMs) including ChatGPT, Gemini, and DeepSeek can systematically augment the investment research process across five emerging-technology sectors: Artificial Intelligence, Robotics, Quantum Computing, Space, and Fusion. The analysis evaluates LLMs not as end-to-end automation, but as accelerators within a governed, human-in-the-loop workflow. Across sector onboarding, multi-lingual discovery, numeric extraction, and first-draft synthesis, LLMs reduced mechanical workload by broadening source coverage and enabling faster iteration. However, the evidence indicates that human judgment remains indispensable for causal reasoning, credibility assessment, evidence weighting, and final investment interpretation; LLMs shift analyst effort but do not replace it. To improve evidence hygiene at scale, the case describes a Python-based fact-checking pipeline that automates link reachability, publication-date extraction, and AI-generation risk screening, later extended into a low-code web interface. The workflow reduced verification time from 4.3 hours to 1.25 hours per 50 links (a 71% reduction), with projected savings of over 90% under full integration of headless browsing and GPTZero API scoring. In parallel, a structured source database with over 250 LLM-cited records (graded by recency and credibility) enabled reproducible evaluation of model outputs and surfaced common failure modes such as hallucinations, outdated citations, and contextual drift. Overall, the case study demonstrates that LLMs are most effective as structured force multipliers when paired with rigorous verification tooling and human oversight.
Temperature Exposure and Energy Factor Misallocation: The Environmental Regulation Threshold in Chinese Cities
Heng Ma, Bingqian Zhang, Lawrence Loh and Siliang Guo
Abstract
This case study examines how large language models (LLMs) including ChatGPT, Gemini, and DeepSeek can systematically augment the investment research process across five emerging-technology sectors: Artificial Intelligence, Robotics, Quantum Computing, Space, and Fusion. The analysis evaluates LLMs not as end-to-end automation, but as accelerators within a governed, human-in-the-loop workflow. Across sector onboarding, multi-lingual discovery, numeric extraction, and first-draft synthesis, LLMs reduced mechanical workload by broadening source coverage and enabling faster iteration. However, the evidence indicates that human judgment remains indispensable for causal reasoning, credibility assessment, evidence weighting, and final investment interpretation; LLMs shift analyst effort but do not replace it. To improve evidence hygiene at scale, the case describes a Python-based fact-checking pipeline that automates link reachability, publication-date extraction, and AI-generation risk screening, later extended into a low-code web interface. The workflow reduced verification time from 4.3 hours to 1.25 hours per 50 links (a 71% reduction), with projected savings of over 90% under full integration of headless browsing and GPTZero API scoring. In parallel, a structured source database with over 250 LLM-cited records (graded by recency and credibility) enabled reproducible evaluation of model outputs and surfaced common failure modes such as hallucinations, outdated citations, and contextual drift. Overall, the case study demonstrates that LLMs are most effective as structured force multipliers when paired with rigorous verification tooling and human oversight.
Does Women’s Participation Mitigate Greenhushing?
Yan Ma, Gen-Fu Feng, Lawrence Loh, Xiaoyan Niu and Chun-Ping Chang
Abstract
For fear of being labeled “greenwashing,” many companies choose the opposite “greenhushing”-they no longer publicly discuss their sustainability actions and goals. But silence does not lead to progress, so what can be done to avoid greenhushing? Using
an interactive fixed effects model for 29 OECD countries from 2002 to 2022, we find that women’s board participation exerts a pro-environmental orientation in corporate decision making, which is associated with lower levels of greenhushing in ESG dis-
closure. This relationship is more pronounced in countries that place greater emphasis on women’s rights in politics, business, and civil liberties. More importantly, in the face of geopolitical tensions and energy risks, we find that countries overly dependent
on oil imports and exports tend to exhibit weaker business environments in relation to ESG disclosure. Accelerating the energy transition, including renewable energy innovation and consumption, is associated with a weaker tendency toward greenhushing.
This study highlights the importance of women’s participation in corporate governance for shaping ESG disclosure practices.
Driving Impact: An ESG Strategy for Tee Up Capital
Cheng Wei Xun, Nicholas Chew Leong Heen, Koh Kai Xin Pearlyn, Lam Zen Xin Jefrey, Lawrence Loh, Kelvin Low and Justin Ng Kum Fook
Abstract
Since 2006, Tee Up Capital has managed high-quality dormitories for migrant workers in Singapore, aiming to create a welcoming and community-oriented environment. Already recognized as a leader in social responsibility, the company pioneered Singapore’s first dedicated team focused on resident engagement and well-being. The study sought to strengthen these foundations by developing a long-term strategy to improve the company’s environmental, social, and management practices.
By conducting interviews and holding focus groups with residents, the study identified ways to make community programs even more effective and inclusive. The case study proposed four primary actions: empowering residents through specialised committees for sports and the environment; launching educational programs like English and computer classes that residents expressed interest in; deepening partnerships with schools and charities to provide extra support; and using digital displays to show energy and water use, encouraging greener habits through friendly competition.
This study transforms dormitory management from a basic service into a “residents-first” community model. By focusing on lasting impact rather than just numbers, the strategy helps Tee up Capital set a new industry benchmark for across the ESG space.
2025
The Inverted U-Shaped Effect of Environmental Taxation on Green Innovation: The Roles of Corporate Environmental Responsibility and Green Finance
Qi Zhang , Liangqun Qi, and Lawrence Loh
Abstract
Implementing environmental protection taxes implies a shift in environmental policy from government enforcement to market incentives, fostering long-term sustainability. Based on institutional theory, this study explores the nonlinear impact of environmental taxes on corporate green innovation and its influencing mechanism, by considering the complex interaction between innovation offsets and environmental costs. Utilizing data from Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges during 2012 and 2023, the study reveals an inverse U-shaped relationship between environmental taxes and green innovation performance, within which corporate environmental responsibility functions as a mediator. Furthermore, the results also reveal that the relationship between environmental taxes and green innovation is positively moderated by the development level of regional green finance. In addition, the heterogeneity analyses show that the inverse U-shaped relationship is more pronounced among heavily polluting and large-scale firms, and firms in more marketized areas and areas with higher levels of intellectual property protection. The research enriches the literature on the dual-edged effects of environmental taxes anchored in green innovation and unpacks the internal mechanism of the effectiveness of environmental protection tax policy. It also provides practical implications for the design of tiered taxes and green finance policies aimed at achieving sustainable development.
Integrating Economics, Environment, Social, and Governance (EESG): A More Comprehensive Sustainable Framework
Yan Ma, Lawrence Loh and Zhu-Jia Yin
Abstract
To establish a comprehensive sustainable development framework that balances economic development and ESG levels, this paper proposes an EESG (Economics, Environment, Social, and Governance) evaluation system. This paper uses the entropy-weighted TOPSIS method to calculate and compare the EESG scores of 121 countries from 2000 to 2022. We find that the development of EESG levels among countries shows significant imbalances, with European countries in a leading position, while African countries have long lagged behind other continents. Moreover, the EESG levels of OECD countries show a robust and significant upward trend, while some non-OECD countries have even stagnated or regressed. Further analysis indicates that North America, Europe, Oceania, and some developed countries in Asia exhibit high levels of both economic development and ESG performance, with a relatively balanced relationship between the two. In contrast, countries in South America, Africa, and most developing countries in Asia lack this balance in their economic and ESG development. This study provides quantitative evidence and theoretical support for achieving the coordination between economic development and sustainable development goals.
Moving Towards a Greener Future with ZUS Coffee
Audrey Gabriella, Cyndi Tjoi, Felishia Darianne, Filbert Jonathan Hanjaya, Jun Kai Koh and Lawrence Loh
Abstract
Sustainability remains a central topic of discussion today, gaining increase visibility across different sectors including those in the food and beverages sector. This study seeks to analyse ZUS Coffee, a tech-driven coffee chain based in Malaysia, and its efforts to integrate sustainable practices into its business operations. Data for analysis was collected from a combination of primary research, on ZUS Coffee’s operations and insights gathered from customer and company surveys, as well as secondary research, leveraging industry best practices from reputable online sources. It was discovered that on top of past and current initiatives, more could be done to address ZUS Coffee’s largest waste contributor, spend coffee grounds, as well as other direct wastes such as milk cartons and cardboard boxes. Moreover, the absence of a standard sustainability reporting framework also limits the extent of ZUS Coffee’s ability to define its direction and vision in the long term. The findings within this study aims to supplement ZUS Coffee with the industry’s best practices to better address sustainability concerns unique to them.
2024
Can Talent Policy Promote Green Technology Innovation?
Yiyang Liu, Ying Wang and Lawrence Loh
Abstract
Talent policy is conducive to attracting, motivating, and retaining vital, innovative talents to provide continuous motivation and innovation for green development. However, there is a dearth of literature on the impact of talent policy on enterprises’ green technology innovation (GTI). To bridge this gap, we take China’s A-share listed enterprises from 2010 to 2021 as samples, construct a Poisson model to test the relationship between talent policy and GTI, and further reveal the mechanism of executive environmental attention on the relationship between them. The research results are: (1) Talent policy significantly promotes GTI. After a series of tests, this positive effect is robust. (2) Executive environmental attention mediates this relationship. (3) The positive impact of talent policy is more significant in heavy polluting enterprises and non-state-owned enterprises, as well as in the power sector. These findings enrich the literature on incentive policy and GTI and have important practical implications for enterprises and policymakers.
Research on the Impact of Industrial Innovation Determinants in China
Kai Xu, Lawrence Loh, Li Liang and Ran Mei
Abstract
China’s industries have been positioned at lower and mid-range of the global industrial chain. On the basis of the latest China Economic Census, the effects of external technology acquisition and internal research and development (R&D) efforts on the innovation performance of Chinese industrial enterprises are examined. The results demonstrate that the levels of R&D intensity, patent output and innovation capability of Chinese industrial enterprises are still very low. Independent R&D has become the most vital source of technological innovation. External technology acquisition significantly inhibits the impact of internal R&D on patent production. In addition, the critical role of independent R&D in the innovation performance of Chinese industrial enterprises is confirmed. This study is of theoretical value and practical significance for promoting the industrial innovation advantages, accelerating the implementation of the innovation-driven development strategy and upgrading industrial structure.
Smarter and Cleaner: How Does Energy Digitalization Affect Carbon Productivity?
Ziyi Shi, Lawrence Loh, Hongshuang Wu and Dongri Han
Abstract
Digitalization is a driving force behind the ongoing energy industrial revolutions, catalyzing China’s pursuit of carbon neutrality and sustainable development. Leveraging provincial data and annual reports from energy enterprises in China, this study constructs a comprehensive analytical framework that encompasses benchmark regression models, mediating effect models, threshold models, and spatial econometric models. These models are utilized to investigate the multi-faceted impacts of energy digitalization on carbon productivity (CP). The aim is to furnish micro-level evidence and policy guidance for advancing energy transformation and fostering low-carbon development enriched with digital elements. This research employs natural language processing and machine learning techniques to compute an Energy Digitalization Index, examining two critical dimensions: digital industry investment and the inclination toward digital transformation. The following key findings emerge: firstly, energy digitalization (ED) exhibits a statistically significant ability to enhance regional CP, a phenomenon marked by temporal and regional variations. Secondly, the analysis confirms the transmission mechanisms associated with energy technology innovation, energy structure, and energy utilization efficiency, as revealed through the Logarithmic Mean Divisia Index (LMDI) decomposition method. Furthermore, the optimal effect of energy digitalization on low-carbon economies materializes in settings characterized by mature market conditions, modest environmental regulations, advanced digital infrastructure, and reduced resource dependency. Additionally, the spatial Markov chain analysis unveils a conspicuous spatial distribution pattern termed “club convergence” in regional CP, accompanied by a pronounced “Matthew effect.” According to the spatial Durbin model, energy digitalization generates favorable spatial spillover effects, primarily in peripheral regions, with a more pronounced short-term influence. Building upon these insights, this paper presents pertinent policy recommendations encompassing the national “digital energy” strategy, regional differentiation policies, and initiatives to stimulate digital technology innovation among enterprises. Our findings furnish robust empirical evidence and constructive policy insights, empowering governments to forge a smarter and cleaner energy ecosystem. Furthermore, these findings offer valuable guidance for other developing nations seeking to implement effective digital strategies.
2023
Innovating ESG Integration as Sustainable Strategy: ESG Transparency and Firm Valuation in the Palm Oil Sector
Tricia Chong and Lawrence Loh
Abstract
Environmental, social, and governance (ESG) integration is an increasingly popular and innovative investing strategy that requires companies to be transparent about their ESG practices to facilitate investors’ decisions. In the palm oil sector, companies are addressing ESG risks by adopting and disclosing ESG efforts to improve access to financing. This study seeks to broaden existing research on ESG transparency and firms’ financial indicators by using firm valuation as a financial indicator and investigating the moderating role of firm size in the palm oil sector. It first investigates whether ESG transparency has a direct positive or negative effect on firm valuation. Transparency is measured using the Zoological Society of London’s (ZSL) Sustainability Policy Transparency Toolkit (SPOTT) 2021 assessment, which provides scores for palm oil companies’ total, environmental, social, and governance disclosures. Firm valuation is measured by the price-to-earnings ratio (P/E), a widely used ratio calculated by dividing the share price by earnings per share. The study also explores the moderating role of firm size, using accounting-based measures such as revenue and assets, in strengthening the relationship between ESG transparency and firm valuation. The results show statistically significant negative relationships between ESG transparency and firm valuation. Companies with stronger ESG transparency are valued at a discount relative to companies with weaker ESG transparency. Additionally, the results find that firm size plays a moderating role such that larger firms strengthen the negative relationships between all transparency measures and firm valuation. These findings encourage constructive action for various stakeholders and provide implications for future research to support mainstreaming sustainable palm oil.
The Relationship Between Sustainable Innovation Efficiency and Economic Growth in China
Kai Xu, Lawrence Loh, Ran Mei and Li Liang
Abstract
China has taken sustainable development strategies seriously in recent years, aiming at reducing energy consumption and environmental pollutants emissions. This research empirically evaluates the sustainable innovation efficiency (SIE) in China from the perspective of energy and environmental constraints. Furthermore, the relationship between SIE and economic growth is tested through Granger causality test. The results indicate that SIE in China varies obviously in different regions. Granger causality runs only from economic growth to SIE and not the other way round. Economic growth is a causative factor of sustainable innovation, indicating that China’s sustainable innovation has not yet achieved coordinated development with the economy. Our findings also provide useful decision-supporting insights for Chinese policymakers to promote coordinated development of regional sustainable innovation and economic growth.
Practical Insights on Philanthropy for Single Family Offices
Marta Widz and Lawrence Loh
Abstract
Business families are important players in the economic system and have contributed to the general prosperity and promotion of engaged capitalism for centuries. Philanthropy is becoming increasingly important for business families as it is also gaining visibility in broader society with the disruptive philanthropy of mega-donors. A global survey among 201 business families from 28 countries, conducted by the Rockefeller Foundation and Campden Wealth in 2020, revealed that half of the families surveyed started giving within the last 30 years, with “new” givers emerging in Europe and North America in the 1990s and in Asia-Pacific only after 2000.
As the family business matures and the business family grows in members, a shared interest like family wealth management or family philanthropy can coalesce the family around a sense of shared purpose in fulfilling its collective aims. Increasingly, both these functions – family wealth management and family philanthropy – are managed and governed by a dedicated family office or single family office (SFO).
Modern global philanthropy holds immense promise in the 21st century. But in order to continue to contribute to the contemporary global economy in a more impactful way, SFO principals and business families must carefully rethink their approaches to family philanthropy by embracing several modern and continuously evolving concepts and contexts in philanthropy.
Heterogeneous Effects of Influencing Factors on Innovation Performance
Kai Xu, Lawrence Loh, Li Liang and Ran Mei
Abstract
This research evaluates and compares the status and trends of regional innovation efficiency (RIE) in 27 EU countries from 2004 to 2017. Regional analysis is further compared to investigate the performance differentials within the EU innovation system. In addition, the factors which influence the innovation efficiency in EU countries by performing the Tobit regression analysis are investigated. The results indicate that the innovation efficiency of EU changes slightly with high-efficiency values. Seven countries are the innovation leaders during the research period, whereas northern and southern regions have relatively higher innovation efficiencies than other regions. Also, the regression results indicate that economic development, human capital investment and regional openness could enhance innovation efficiency in most EU regions, while industrial structure, urbanisation level and infrastructure level hinder the improvement of EU’s innovation efficiency. Based on these results, recommendations are provided for policymakers aiming at stimulating innovation among the EU innovation system.
From Business Families to Complex Family Wealth Systems
Marta Widz and Lawrence Loh
Abstract
As the business family system evolves from one-family-in-one-business and transitions towards complex family wealth systems (CFWS), its family-related organisational ecosystem becomes richer. The “S” for system usually includes the legacy family business, a mixed assets portfolio of other businesses, other family assets, and a diverse portfolio of family boundary organisations, such as family foundations, family business foundations, family offices, family holdings, family academies, and family museums. Naturally, as the complexity of the business portfolio evolves, the governance of the CFWS also evolves and becomes more complex.
2022
The Fundamental Challenge for Family Office: Impact and Owners’ Identity
Marta Widz and Lawrence Loh
Abstract
Sustainability and impact have become important long-term priorities for organisations, individuals, and society at large.
Wealth owners are looking for ways to make a positive impact on the most pressing issues of the day. Against this backdrop, a fresh wave of strategic owners and investors have emerged, who are adopting innovative approaches to sustainable investing and impact.
Supporter or Supervisor? The Role of Chief Financial Officers in Corporate Innovation
Junqin Huang, Youliang Liao, Bin Lin and Lawrence Loh
Abstract
Like the chief executive officer (CEO), the chief financial officer (CFO) is an important corporate player. However, compared to the role of CEOs, research on the factors influencing corporate innovation has paid very little attention to the role of CFOs. Based on the perspective of role theory, we measure CFO role performance by organizational identification to explore the role of CFOs in corporate innovation. Employing the availability of CFO organizational identification data from a survey of listed firms in China, we find that: (1) CFO organizational identification is negatively associated with innovation output in state-owned enterprises (SOEs) and positively associated with innovation output in non-state-owned enterprises (non-SOEs); (2) corporate misconduct experience positively moderates the relationship between CFO organizational identification and innovation in SOEs; (3) CFO financial industry experience positively moderates the relationship between CFO organizational identification and innovation in non-SOEs. Our results show that CFOs play the supervisor role in innovation in SOEs and the supporter role in innovation in non-SOEs. Our research provides theoretical and practical references for companies to sustainably drive innovation.
Exploring the Effect of Digital Economy on PM2.5 Pollution – The Role of Technological Innovation in China
Xiangxiang Sun, Zhangwang Chen and Lawrence Loh
Abstract
PM2.5 emission causes serious harm to health and hinders the sustainable development of economy and society. Among all the factors affecting PM2.5 pollution, the role of new economic forms and information technology innovation is lacking. This study aims to explore the impact of digital economy on PM2.5 pollution and its influencing mechanism using data from 281 prefecture-level cities from 2011 to 2016. The empirical results demonstrate that digital economy is conducive to reducing PM2.5 pollution. In other words, the digital economy is conducive to alleviating PM2.5 pollution. Further analysis shows that the digital economy promotes technological innovation, which is an important mediating mechanism affecting PM2.5 pollution. Additionally, the inhibitory effect of digital economy on PM2.5 pollution is more significant in the eastern and central regions. Unfortunately, the negative impact of digital economy on PM2.5 pollution is not significant in the western region. The conclusions provide a new strategy for reducing pollution emissions and improving environmental quality and technological innovation.
The Impact of Leadership Diversity on Firm Performance in Singapore
Lawrence Loh, Thi Thuy Nguyen and Annette Singh
Abstract
The intersection of sustainability and corporate governance is particularly evident in leadership diversity, which has gained increasing prominence in recent years. The central question of leadership diversity’s impact on firm performance remains open, including for Asia, which has been relatively less-studied. This paper seeks to contribute to this literature, adopting a multidimensional view of leadership diversity in Singapore’s public-listed companies. We examine diversity in boards and senior management combined, in order to better understand the impact of diversity among firm strategic leadership. Based on random effects regression analysis using data from 577 companies, our results generally provide support for a beneficial diversity impact. Gender, age, and education leadership diversity were found to have a positive influence on financial performance. We further found gender diversity and performance to have an inverted U-shaped relationship, with the inflexion point being gender parity. This suggests a potentially important role for gender parity in firm leadership governance.
2021
An Assessment of Early Adopters of TCFD Disclosures: The Singapore Perspective
Lawrence Loh and Yvonne Yock
Opinion
Listed entities and financial institutions in Singapore may soon be mandated to make climate-related financial disclosures. Most notably, these disclosures may be aligned to a set of standards accepted globally. This was the call of the Monetary Authority of Singapore in June this year. In a related way, the Singapore Exchange (SGX) has earlier mandated that its listed companies complete a yearly sustainability report, with various specific components required for reporting on a comply-or-explain basis. It is currently examining how climate-related disclosures may be fostered amongst these companies. Indeed, the MAS may soon consult the industry on making climate-related reporting specifically in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This is a comprehensive framework that is broadly accepted internationally.
Exploring the Antecedents and Consequences of Effectuation in NPD: The Moderating Role of Firm Size
Cheng Denga, Jianjun Yang, Lawrence Loh and Tian Mu
Opinion
Using survey data from 291 Chinese firms, we explore the potential antecedents and consequences of effectuation in new product development (NPD) activities, as well as investigating the moderating role of firm size. We find that effectuation has a positive effect on new product creativity (NPC). We further find that both environmental dynamism (ED) and slack resources (SR) have a positive effect on effectuation. In terms of the moderating role of firm size, we find it weakens the relationship between ED and effectuation, but strengthens the relationship between SR and effectuation. Our findings support the active role effectuation plays in boosting NPC and extend existing understanding of how ED and SR promote effectuation respectively. The study also highlights the different moderating roles of firm size between two antecedents and effectuation.
2020
Can Family Members’ Involvement Improve Technological Innovation? Empirical Study Based on Chinese Family-Owned Enterprises
Lingling Zhuang, Lawrence Loh and Minna Zheng
Opinion
From the perspective of agency theory, family members’ involvement is negatively correlated with technological innovation. However, from the perspective of stewardship theory, it is believed that family members’ involvement is positively correlated with technological innovation. From the
phenomenon mentioned above, this paper studies the influence of family members’ involvement on R&D investment and R&D output and tests the above competitive hypotheses. Based on the 2007–2016 data of A-share listed family-owned enterprises, this empirical study found that family
members involved in corporate management not only save R&D investment, but they also increase R&D output. After controlling for endogeneity, the above conclusions are still valid. This study provides empirical evidence for the objective recognition of the relationship between family members’
involvement and technological innovation.
Impact of Sustainability Reporting on Brand Value: An Examination of 100 Leading Brands in Singapore
Lawrence Loh and Sharmine Tan
Abstract
The recent sustainability reporting (SR) mandate by the Singapore Exchange has heightened stakeholder awareness and propelled sustainability disclosures. Albeit encouraging, more than half of listed companies in Singapore do not produce sustainability reports. This signifies a lack of sustainability commitment, or perhaps, local companies have limited understanding on the potential value of sustainability.
Our study aims to fill this gap by examining if (1) the 100 leading brands in Singapore similarly benefit from a higher brand value when they produce sustainability reports; (2) if more disclosure leads to higher brand value; (3) if a lagged effect is present.
The methodology of this study included the collation of sustainability information from the 100 leading brands in Singapore, scoring each company’s sustainability performance using the Global Reporting Initiative (GRI) framework. Finally, we examine the correlations using regression analysis to compare the companies’ sustainability performance with the reputed brand rankings by Brand Finance.
Our findings revealed that one-fifth of the 100 leading brands in Singapore do not engage in sustainability, despite the positive correlation between sustainability reporting and brand value. Our results also suggest that greater disclosure leads to higher brand value, yet social and environmental indicators are undermanaged. Moreover, there is a lagged effect as public perceptions take time to shape. Internalising a company’s sustainability vision through a multi-stakeholder consultative approach is critical. Brand managers and sustainability practitioners must be aware that failures to meet stakeholder expectations today may consequently impact investors’ decisions.
How Do Environmental, Social and Governance Initiatives Affect Innovative Performance for Corporate Sustainability?
Qi Zhang, Lawrence Loh and Weiwei Wu
Abstract
Corporate sustainability has been a long-established topic in the corporate operating process. Much research focuses on the internal relationships among environmental, social and economic dimensions of corporate sustainability, yet few studies have examined the topic from the perspective of environmental, social and governance (ESG) initiatives and innovative performance. Using insights from stakeholder theory, this study develops theoretical linkages between corporate ESG initiatives and innovative performance. It further considers whether these relationships still exist under different institutional development settings. Based on the samples of 433 observations which are listed on the Shanghai and Shenzhen stock exchanges, in China, from 2007 to 2017, empirical results using the method of hierarchical regression analysis have confirmed that corporate environmental initiatives, social initiatives and governance initiatives have direct positive impacts on innovative performance. Furthermore, in examining the interactive effect of individual dimensions of ESG initiatives, the results reveal that corporate governance initiatives play a moderating role in the relationship between environmental initiatives and innovative performance and in the relationship between social initiatives and innovative performance. Finally, the empirical analyses also show that institutional development influences the effectiveness of corporate governance initiatives. This research contributes to extending the prior literature and providing several recommendations for firms to achieve corporate sustainability.
Sustainable Innovation Governance: An Analysis of Regional Innovation with a Super Efficiency Slack-Based Measure Model
Kai Xu, Lawrence Loh and Qiang Chen
Abstract
As China is undergoing economic transformation and facing increasing energy and environmental problems, it is essential to pay special attention to sustainable innovation governance.
This research took industrial waste and total energy consumption into consideration and uses a super efficiency slack-based measure (SBM) model to empirically evaluate the regional innovation efficiency of Chinese provinces. The results showed that the efficiency of China’s regional sustainable innovation has not changed significantly over recent years. In addition, the results also showed large and varying degrees of innovation efficiency across different provinces. Eastern China, in comparison to central and western China, showed higher innovation efficiency. In addition, we found a slightly increasing trend in terms of innovation efficiency disparities between the three areas. On the basis of these findings, the reasons for the innovation efficiency gap between different regions were analysed. The impacts of influential factors on sustainable innovation efficiency were further explored.
We found that technology market maturity affected sustainable innovation efficiency positively, while government funding had a negative impact on sustainable innovation efficiency. Industrial structure and environmental regulations had no significant effect on sustainable innovation efficiency. Finally, some implications for improving governance performance in terms of sustainable innovation were provided.
Effect of Market Fragmentation on Ecological Efficiency: Evidence from Environmental Pollution in China
Xiang Xiang Sun, Lawrence Loh and Zhangwang Chen
Abstract
There is a lack of studies on whether market distortions inhibit the ecological efficiency. This study introduces the ecological efficiency based on the bootstrap-data envelopment analysis (DEA) method as the indicator of environmental performance in China, uses the transcendental logarithmic production function to calculate factor price distortion, and further identifies whether the factor price distortion has a negative impact on the ecological efficiency using the system generalised method of moments (GMM) method. Meanwhile, institutional quality is considered a threshold variable to examine the relationship between factor price distortion and ecological efficiency based on the threshold model. The result shows that factor price distortion significantly inhibits the improvement of ecological efficiency. Moreover, institutional quality is considered to be the threshold of factor price distortion affecting ecological efficiency. Further investigation of heterogeneity effect suggests that the inhibitory impact of factor price distortion on ecological efficiency is more significant in the central and western regions. This study provides a supplement to the study on environmental performance from the perspective of factor distortions and expands the framework of the influence mechanism of factor price distortion affecting ecological efficiency.
2019
Factor Price Distortion and Ecological Efficiency: The Role of Institutional Quality
Xiangxiang Sun, Lawrence Loh, Zhangwang Chen and Xiaoliang Zhou
Abstract
Local governments restrict cross-regional flows of factors and products for achieving the purpose of profit, which lead to market fragmentation. China’s domestic market is fragmented, leading to the situation that market boundaries are demarcated. We use the relative price method to measure market fragmentation and find that market fragmentation is indeed a serious problem in China. This study evaluates the ecological efficiency using the bootstrap DEA method that takes air and water pollution into account and investigates the effect of market fragmentation on ecological efficiency based on the system GMM approach by employing data from a panel of 29 provinces in China during the period 2000-2015. The results indicate that there are differences in ecological efficiency among provinces. The market fragmentation has negative impact on ecological efficiency, which shows market fragmentation significantly inhibits the improvement of ecological efficiency. The similar findings are confirmed by a series of robustness tests, which include the alternative indicator and sub-sample regression. Based on the above findings, the central government should reduce market fragmentation, promote market integration, increase the efficiency of resource allocation, and improve environmental quality.
Sustainability Governance in China: An Analysis of Regional Ecological Efficiency
Xiangxiang Sun and Lawrence Loh
Abstract
The Chinese government is committed to sustainability governance to alleviate the shortage of energy and the imbalance between ecological environment and economic development. This paper evaluates and analyses the sustainability governance performance of China.
A bootstrap data envelopment analysis (DEA) is proposed to evaluate sustainability governance performance of 30 provinces based on ecological efficiency in China from 1998 to 2015. The results indicate that the ecological efficiency of China significantly improved as a whole, which is related to the decline in sulphur dioxide emissions. Among these provinces, Jiangsu, Liaoning, and Inner Mongolia exhibited the highest values, while Gansu, Chongqing, and Sichuan had the lowest values. The 30 provinces were divided into four sub-areas.
The average ecological efficiency of the eastern area was the highest, followed by the northeast area. Compared to the east area, northeast area, and central area, we find that the west area obviously falls behind. As such, the results provide helpful guidance to improve ecological governance performance.
2018
Board Governance and Sustainability Disclosure: A Cross-Sectional Study of Singapore-Listed Companies
Meibo Hu and Lawrence Loh
Abstract
This paper aims to investigate the relationship between board governance and sustainability disclosure in Singapore. Regression analysis is performed using cross-sectional data of Singapore-listed companies to examine the relationship between sustainability disclosure and various board governance factors, including board capacity, board independence, and board incentive.
The findings show the presence of significant associations between board governance and sustainability disclosure. In terms of board capacity, companies with larger board sizes and a higher number of board meetings are more likely to practise sustainability reporting, and their reporting qualities are higher.
For board independence, the percentage of independent directors positively impacts the firm’s reporting probability and quality on sustainability in Singapore. For board incentives, the practice of long-term incentives for executive directors can significantly improve both the probability and quality of sustainability reporting. The study adds to the literature on corporate governance and sustainability disclosure. It provides empirical evidence and guidance for firms and policy-makers in Singapore and beyond on how sustainability disclosure can be improved through robust board governance.
Board Diversity and Business Performance In Singapore-Listed Companies The Role Of Corporate Governance
Lawrence Loh and Mai Huong Nguyen
Abstract
This study examined the relationship between board gender diversity and corporate governance and the implications for a company’s financial performance. It used a combination of a publicly available data of director profiles, company corporate governance scores from the Singapore Governance and Transparency Index (SGTI), and company financial performance indicators obtained from Bloomberg.
For the financial performance indicators, both return on equity (book measure) and Tobin’s Q (hybrid measure) were considered. The relationship between board gender diversity and corporate governance score was analysed, and that between these variables and financial performance was investigated as well. Both relationships were tested empirically with ordinary least squares (OLS) regression models.
Board gender diversity was found to have a positive and statistically significant impact on corporate governance score. Corporate governance score was found to have a positive and statistically significant impact on company financial performance, whereas no such effect by board gender diversity on company financial performance was found.
This appears to suggest that board gender diversity has an indirect effect on financial performance, acting through its intermediate effect on corporate governance scores. The exception to this is the effect of the fraction of female independent directors on Tobin’s Q, which was positive and statistically significant, which seems to suggest that companies should pay more attention to the number of female independent directors on their boards.
2017
Sustainability Reporting and Firm Value: Evidence from Singapore-Listed Companies
Lawrence Loh, Thomas Thomas and Wang Yu
Abstract
As sustainability reporting has emerged as one of the most critical issues in the business world, this research aims to investigate the relationship between sustainability reporting and firm value based on listed companies in Singapore. We use an established sustainability reporting assessment framework and test how both the adoption and quality of sustainability reporting are related to a firm’s market value. Empirical results suggest that sustainability reporting is positively related to firm’s market value and this relationship is independent of sector or firm status such as government-linked companies and family businesses.