Sustainable Development, Sustainability Leadership and Firm Valuation: Differences across Europe

Miralles-Quirós, María del Mar; Miralles‐Quirós, José Luis; Arraiano, Irene Guia

doi:10.1002/bse.1964

Cited by 55 publications

(74 citation statements)

References 54 publications

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“…These results are similar to those obtained for developed markets [13,[17][18][19], where there was a clear positive and significant relationship between sustainability information and the price of shares. However, unlike most previous studies in which dummy variables were used, such as the publication of social responsibility reports or the inclusion of the company in a sustainability index, in this study we use the three modern ESG pillars and find that investors do not significantly value the three pillars.…”

Section: Resultssupporting

confidence: 89%

“…This model has been widely used in the field of CSR research by using information on social responsibility as this additional information [13,[15][16][17][18][19][20][21]. Following, therefore, the existing literature for other markets, in this study we propose the application of Ohlson's model [39] to estimate the value relevance in the São Paulo Stock Exchange of the CSR performance level of the companies listed on it.…”

Section: Methodsmentioning

confidence: 99%

“…This theory suggests, therefore, that the implementation of sustainability initiatives may not be profitable and, therefore, this is likely to destroy the value of the company. Although the literature on CSR and shareholder value creation provides mixed results [29][30][31], a growing number of studies support the value enhancing theory [13,16,18,19,[32][33][34][35][36].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The fact that an increasing number of shareholders worldwide take environmental, social, and corporate governance considerations into account in their investment decisions has meant that listed firms are more interested in adopting CSR practices to obtain an advantage when it comes to accessing financial resources [11][12][13]. However, the potential benefit to a shareholder of the company in which it invests carrying out CSR activities depends on how that information affects the stock market value of the shares [14].…”

Section: Introductionmentioning

confidence: 99%

“…Second, most studies have used as their corporate sustainability indicators the publication of sustainability reports [15][16][17][18][19] or the inclusion of the company in a socially responsible index [13,18,20,21]. These binary variables have a number of disadvantages.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

The Value Relevance of Environmental, Social, and Governance Performance: The Brazilian Case

Miralles‐Quirós

Gonçalves³

2018

Sustainability

171

122

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There is extensive literature on the value relevance of social responsibility for companies that operate in developed countries. However, little is known about the influence of these practices on the price of assets listed on emerging economies, such as Brazil. In this context, the aim of this study is to analyse whether social responsibility activities carried out by companies listed on the São Paulo Stock Exchange during the 2010-2015 period play a significant role in enhancing firm value. Unlike previous studies, we distinguish between the three modern pillars of sustainability: environmental, social, and corporate governance (ESG). Our overall results support the value enhancing theory rather than the shareholder expense theory. However, it is important to note that the results also show that the market does not significantly value the three ESG pillars. Specifically, the market positively and significantly values the environmental practices carried out by companies not related to environmentally sensitive industries. In contrast, the market positively and significantly values the social and corporate governance practices carried out by the companies belonging to these sensitive industries. These findings are relevant for both investors and the managers of these companies, policy makers, customers, and citizens concerned about ESG issues.

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Section: Resultssupporting

confidence: 89%

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The Value Relevance of Environmental, Social, and Governance Performance: The Brazilian Case

Miralles‐Quirós

Gonçalves³

2018

Sustainability

171

122

View full text Add to dashboard Cite

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Target‐setting for ecological resilience: Are companies setting environmental sustainability targets in line with planetary thresholds?

Haffar

Searcy

2018

Bus Strat Env

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The purpose of this research is to explore the extent to which companies are setting organization‐centric versus resilience‐based environmental targets in their sustainability reports. We define ecological resilience through the planetary thresholds identified by the Planetary Boundaries (PB) framework. On this basis, we define resilience‐based targets as corporate environmental targets that are connected (quantitatively or qualitatively) to these thresholds. Sustainability reports issued by 50 sustainability leader firms in Canada were analyzed to identify environmental sustainability targets. These targets were classified as resilience‐based and organization‐centric based on their connection to the PB framework. A total of 303 targets were identified, distributed across eight different corporate performance areas. None of these targets was found to be quantitatively tied to any PB thresholds. A small number of targets did nevertheless make reference to the global/regional ecological processes that underpin some of the Boundaries. These targets made reference to only five of the nine Boundaries described by the framework. This study highlights the extent of organization‐centric environmental targets in corporate sustainability reports. The implications of setting such targets are discussed, along with the challenges of adopting resilience‐based targets. This study also discusses the reasons why companies may not be adopting a resilience‐based approach to set sustainability targets and measure performance, despite increasing calls from stakeholders to do so. On this basis, several recommendations are also provided for managers to guide resilience‐based target‐ and goal‐setting.

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The moral responsibility of corporate sustainability as perceived by fashion retail employees: a USA‐China cross‐cultural comparison study

2018

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Despite fashion consumers' desire to protect the environment and behave in a socially responsible manner, the reality of the environment within the fashion retail industry is far from sustainable, as evidenced by several infamous scandals that continue to afflict fashion businesses. Though corporate sustainability is gaining traction with both consumers and businesses, the USA and China may exist in different institutional contexts in regard to corporate sustainability. Consequently, this study was designed to understand the differences in employees' perceptions toward corporate sustainability, and how employees in fashion retail businesses engage in organizational citizenship behaviour in the USA and China. By using a sample of 615 fashion retail employees from the USA and China, this study conducted Multivariate Analysis of Variance and multiple linear regression analyses to determine the differences between these two countries and their demographic characteristics. The study found that employees in China revealed a greater preference for transparency in production and operation than did US employees. The importance of corporate sustainability yielded quite opposite results according to age and gender differences. Overall, this study found that both US and Chinese employees perceived sustainability to be highly important for corporations to achieve, but only US employees were engaged in organizational citizenship behaviour with the influence of their MRCS. Hence, this study's findings provide better insight for global fashion retail businesses in that they may have to exercise different strategies to achieve corporate sustainability in different countries, as the employees might have different levels of moral expectations based on their country of employment.

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Sustainable Development, Sustainability Leadership and Firm Valuation: Differences across Europe

Cited by 55 publications

References 54 publications

The Value Relevance of Environmental, Social, and Governance Performance: The Brazilian Case

The Value Relevance of Environmental, Social, and Governance Performance: The Brazilian Case

Target‐setting for ecological resilience: Are companies setting environmental sustainability targets in line with planetary thresholds?

The moral responsibility of corporate sustainability as perceived by fashion retail employees: a USA‐China cross‐cultural comparison study

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