ANALYZING THE IMPACT OF FIRM-SPECIFIC FACTORS ON SUSTAINABILITY PRACTICES: UNRAVELING THE MODERATING EFFECT OF LIQUIDITY

Fatima Azam; Farrukh Shaheen Amjad

Fatima Azam National College of Business Administration and Economics, Lahore, Punjab, Pakistan
Farrukh Shaheen Amjad National College of Business Administration and Economics, Lahore, Punjab, Pakistan

Keywords: Firm Specifics, Sustainability Practices, Liquidity, Corporate Governance

Abstract

This study aims to investigate the relationships between characteristics of firm-specific & the implementation of sustainable corporate practices, and exploring the moderating effect of liquidity to acknowledge the essential role of financial flow in shaping the sustainable approach of businesses in United States. In the proposed study secondary data of 10 listed chemical industries in US stock market has been gathered over a ten-year period of time from 2013-2022. Data is collected from annual reports, sustainability reports and CSR report of chemical industries. Firm specifics are measured with firm age and return on asset (ROA), corporate governance with CEO duality and board size whereas, sustainable practice have been examined by social and community expenses. The results provides the significant and valuable information in reaching the conclusion and making the sutiable decisions. The study’s finding indicates that there is significant impact of ROA, CEO duality and board size upon the sustainable business practices. However, firm age has negative significant effect on both firm specifics and sustainability. Similarly, the results offered certain valuable clues for future researchers.