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Environmental, Social and Governance Credentials of Agricultural Companies—The Interplay with Company Size

Author

Listed:
  • Mirela Cristea

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A I Cuza Street, 200585 Craiova, Romania)

  • Graţiela Georgiana Noja

    (Department of Marketing and International Economic Relations, Faculty of Economics and Business Administration, West University of Timisoara, 16 Pestalozzi Street, 300115 Timisoara, Romania)

  • Eleftherios Thalassinos

    (Faculty of Maritime and Industrial Studies, University of Piraeus, 185-33 Piraeus, Greece)

  • Daniel Cîrciumaru

    (Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A I Cuza Street, 200585 Craiova, Romania)

  • Constantin Ștefan Ponea

    (Department of Economics, Faculty of Legal, Economic and Administrative Sciences, Craiova, Spiru Haret University, 4 Vasile Conta Street, 200580 Craiova, Romania)

  • Carmen Claudia Durău

    (Faculty of Agriculture, Veterinary Medicine “King Michael I of Romania”, Banat’s University of Agricultural Sciences, Calea Aradului No. 119, 300641 Timisoara, Romania)

Abstract

Based on the significance of the corporate social responsibility (CSR) activities, respectively, the Environmental, Social and Governance (ESG) measures, for companies’ advancement in the fields of agriculture, the purpose of our study is to appraise how the ESG measures influence the size of public companies from the agricultural sectors, with particular attention on the environmental pillar. The research methodology consists in applying two econometric procedures to assess the direct effects of the ESG activities on the size of public agricultural firms by models of robust regression (RREG) and to appraise global implications of ESG measures on companies’ dimension by models of structural equations (SEM). Data encloses the ESG indicators, focusing on environmental indicators and agricultural companies’ size (proxied by total assets), extracted from the Thomson Reuters Refinitiv Eikon database for the fiscal year 2020. Main results reveal that several components of the ESG measures, especially the environmental ones, may influence the size of the agricultural companies, given the significant companies’ strengths in implementing CSR actions to ensure sustainable resource management. We propose adequate strategies for companies to provide robust resource management and proper integration of the environmental credentials.

Suggested Citation

  • Mirela Cristea & Graţiela Georgiana Noja & Eleftherios Thalassinos & Daniel Cîrciumaru & Constantin Ștefan Ponea & Carmen Claudia Durău, 2022. "Environmental, Social and Governance Credentials of Agricultural Companies—The Interplay with Company Size," Resources, MDPI, vol. 11(3), pages 1-12, March.
    • Handle: RePEc:gam:jresou:v:11:y:2022:i:3:p:30-:d:769229
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    References listed on IDEAS

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    1. Karen Gloria Vargas‐Santander & Susana Álvarez‐Diez & Samuel Baixauli‐Soler & María Belda‐Ruiz, 2023. "Corporate social responsibility and financial performance: Does country sustainability matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3075-3094, November.

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