This study aims to examine whether the readability of the board of directors’ reports disclosed in annual and sustainability reports influences firms’ cost of debt. This study also investigates the moderating role of leverage in this relationship. Using data from manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2019–2024, this study employs a two-way system generalized method of moments (GMM) approach to analyze data and address endogeneity issues. The findings reveal that the readability of financial and non-financial reports does not independently influence firms’ cost of debt. Nevertheless, leverage significantly moderates this relationship, indicating that the association between sustainability report readability and the cost of debt becomes more pronounced among highly leveraged firms. These results imply that the effect of report readability on creditors’ risk assessments is contingent upon firms’ financial conditions. While readability alone may not be sufficient to affect borrowing costs, clearer sustainability disclosures appear to become more relevant in highly leveraged firms, where creditors are likely to place greater emphasis on transparency and sustainability-related information. This suggests that the value of sustainability narratives lies not merely in readability itself, but also in how such disclosures interact with firms’ underlying financial risk and credibility (Shakir et al., 2026; Bonsall et al., 2017).
Corporate tax avoidance remains a major concern in developed economies, yet evidence on whether environmental, social, and governance (ESG) performance constrains firms’ long-term tax behavior remains inconclusive (Ardhaoui & Amar, 2026; Mitroulia et al., 2025). This study examines the nexus between sustainability performance and corporate tax avoidance using a panel of 14,025 firm-year observations from 2014 to 2022. Firm fixed-effects models are employed to evaluate the effects of the composite ESG score and its ESG pillars on long-run cash effective tax rates (LRCETRs). The outcomes indicate that stronger ESG performance is connected with lower corporate tax avoidance, with the environmental and governance pillars exhibiting the strongest effects, while the social pillar shows a weaker but consistent association. Robustness analyses using alternative tax avoidance measures and firm-size subsamples confirm the stability of the results. By providing evidence from developed economies and focusing on persistent tax behavior rather than short-term tax outcomes, this study extends the ESG-tax literature, supports stakeholder, legitimacy, and agency theories, and offers practical implications for regulators, investors, and corporate decision-makers seeking to promote transparent and responsible tax practices.
The literature and international organizations have recommended many environmental, social, and governance (ESG) practices. However, these practices are meant for large companies with substantial financial resources and diverse operations (Hock et al., 2025). Still, they are not suitable for micro, small, and medium enterprises (MSMEs), which are much smaller and have limited financial capabilities, as these requirements are more complex, sophisticated, and lengthy (Setyaningsih et al., 2024). Recognizing this gap, the purpose of this paper is to examine and develop more practical and suitable ESG practices for MSMEs. This study used a qualitative research design, utilizing content analysis as its research methodology. A few selected national and international policy papers on ESG were examined and analyzed. This research finds that for environmental elements, measures such as energy and emissions management, waste and water efficiency, and resource optimization are the most sought by the international community. Social commitments, on the other hand, focused on labor standards, occupational health and safety, and community engagement. Lastly, governance mechanisms are centered on ESG oversight, risk management, ethics, anti-corruption, and whistleblowing. This research is important because it proposes an appropriate framework of ESG practices that will support small and medium enterprise (SME) sustainability agendas.
This systematic literature review (SLR) examines how sustainable accounting influences business development by synthesizing evidence from 71 articles published between 2020 and 2025 and indexed in Scopus and Web of Science (WoS). The objective of this study was to analyze the influence of sustainable accounting on business development and identify the main organizational challenges, implementation strategies, and outcomes associated with its adoption. Using the PICO strategy and the PRISMA protocol, the study identifies key organizational challenges, implementation strategies, and outcomes related to sustainable accounting. The findings show that sustainable accounting strengthens business development through corporate social responsibility (CSR), sustainability reporting, environmental management accounting, technological innovation, risk management, cost efficiency, and long-term value creation. In particular, 42 percent of the reviewed studies emphasized improvements linked to social responsibility and corporate governance, while the remaining evidence highlighted financial transparency, technological innovation, and environmental accounting practices. Consistent with Schaltegger et al. (2022) and Alsarayrah et al. (2024), the review concludes that sustainable accounting is both a managerial and strategic tool for integrating economic, social, and environmental performance. The article contributes by systematizing recent evidence, identifying research gaps, and supporting the adoption of sustainable accounting practices for long-term business development.
Non-performing loans (NPLs) play a major role in impacting the bank efficiency and credit supply levels (Abdullah et al., 2024; Huljak et al., 2022). The presence of a high NPL ratio among banks indicates poor asset and institutional quality for banks. This, in turn, impacts the lending levels approved by banks. In the modern economy, it is necessary to have a constant lending level, as economic growth depends on it. However, in China, it has been observed that there has been a growth in NPLs and a fall in lending levels. Therefore, it is necessary to understand the impact that NPLs have on the lending levels in banks across China. In order to analyses the same, the paper uses data from Chinese commercial banks between 2010 and 2022. Using a two-way fixed effects (TWFE) and dynamic Arellano-Bond generalized method of moments (GMM) models, it is found that higher NPL ratios significantly reduce loan growth. The results indicate that as the NPLs rise, the asset quality of the bank falls. This leads to a fall in the credit levels as well. Overall, this research highlights the importance of internal financial efficiency in sustaining credit supply and maintaining stability in emerging banking systems.
