How Does the Market Value Corporate Sustainability Performance?

• Tipo: Artigo em Revista Científica Internacional
• Data: 2012

Autores

Isabel Costa Lourenço (Autor) Outra; Manuel Castelo Branco (Autor) FEP; José Dias Curto (Autor) Outra; Teresa Eugénio (Autor) Outra

Revista

Título: Journal of Business Ethics

Vol. 108 Nº 4

Páginas: 417-428

ISSN: 0167-4544

Editora: Springer Nature

Indexação

ISI Web of Knowledge - 186 Citações

ISI Web of Science

Scopus - 223 Citações

Classificação Científica

FOS: Ciências sociais > Economia e gestão

Outras Informações

ID Authenticus: P-002-8KQ

DOI: 10.1007/s10551-011-1102-8

Abstract (EN): This study provides empirical evidence on how corporate sustainability performance (CSP), as proxied by membership of the Dow Jones sustainability index, is reflected in the market value of equity. Using a theoretical framework combining institutional perspectives, stakeholder theory, and resource-based perspectives, we develop a set of hypotheses that relate the market value of equity to CSP. For a sample of North American firms, our preliminary results show that CSP has significant explanatory power for stock prices over the traditional summary accounting measures such as earnings and book value of equity. However, further analyses suggest that we should not focus on corporate sustainability itself. Our findings suggest that what investors really do is to penalize large profitable firms with low level of CSP. Firms with incentives to develop a high level of CSP not engaging on such strategy are, thus, penalized by the market.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 12