The effects of social ratings on firm value

Cellier, Alexis; Chollet, Pierre

doi:10.1016/j.ribaf.2015.05.001

Cited by 34 publications

(24 citation statements)

References 69 publications

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“…Although the prevalent approach in the literature is to use the social and environmental performance evaluations provided by numerous rating agencies (e.g., MSCI ESG STATS, Innovest, Vigeo, Ethical Investment Research Information Service—EIRIS, Canadian Social Investment Database—CSID) (Brammer et al, ; Cellier & Chollet, ; Ernult & Ashta; 2008; Ho, Wang, & Vitell, ) these measures have several potential drawbacks. The most important are related to bias toward rated companies and respondents, problematic generalization due to the unsystematic use of criteria, complexity through excessive use of indicators, lack of objectivity and transparency, and limited scope (Ernult & Ashta, ; Fombrun, ; Graves & Waddock, ; Ho et al, ).…”

Section: Data and Sample Selectionmentioning

confidence: 99%

Bridging the gap: How sustainable development can help companies create shareholder value and improve financial performance

Gómez‐Bezares

Przychodzeń

Przychodzeń³

2016

Business Ethics: A European Review

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This study examines the effect of integrating sustainability into corporate strategy on various aspects of shareholder value creation and financial performance in the British capital market. The employed method is based on the content analysis of corporate disclosures and a new technique for assessing the adoption of the corporate sustainability concept (embracing the environmental, social, and financial aspects of a company's policies at the same time). Using extensive data of FTSE 350 firms covering the years 2006-2012, 65 companies were selected as meeting corporate sustainability criteria. For the above period, we find that these firms were characterized by higher financial risk exposure, lower asset growth rates, lower BV/MV ratios, lower EVA ratios, and higher MVA ratios. Such relations were generally present among different size and industry groupings. The results support the thesis that firms that incorporate sustainability issues into their business operations are better able to leverage their resources toward stronger financial performance and shareholder value creation than other companies. The paper contributes to the literature by offering a more holistic approach to corporate sustainable performance measurement and shedding additional light on its relation to financial performance in the context of the recent global financial crisis and its direct aftermath.Business Ethics: A Eur Rev 2017; 26: 1-17 wileyonlinelibrary.com/journal/beer

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Section: Data and Sample Selectionmentioning

confidence: 99%

Bridging the gap: How sustainable development can help companies create shareholder value and improve financial performance

Gómez‐Bezares

Przychodzeń

Przychodzeń³

2016

Business Ethics: A European Review

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“…There are numerous rating agencies and other sources that provide independent social performance evaluations (e.g., MSCI ESG STATS, Innovest, Vigeo, Ethical Investment Research Information Service (EIRIS), and Canadian Social Investment Database (CSID)). Many researchers used measurers constructed by the above entities in their analyses of relations between various aspects of corporate social and financial performance [28,[110][111][112].…”

Section: Data and Sample Selectionmentioning

confidence: 99%

Corporate Sustainability and Shareholder Wealth—Evidence from British Companies and Lessons from the Crisis

2016

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This study examines the impact of corporate sustainability (CS) on stock market returns for FTSE 350 companies over the period 2006-2012. We find that an investment strategy that bought shares in companies with balanced financial, social, and environmental activities would have earned an annual four-factor alpha for a value-weighted portfolio of 3.54% per year during the sample period and 2.98% above industry benchmarks. In addition, we find that CS is negatively correlated with stock return volatility, and investing in companies with CS not only generates higher returns during peak phases, but also diminishes shareholders' losses during bear phases. We have also carried out an additional, out-of-the-sample analysis for the years 2013-2015 which confirmed our results.

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“…Whereas (Duan, & Jin, 2019;Duan & Li, 2015;Erel, Jang, & Weisbach, 2015;Hamza et al, 2016;Yaghoubi et al, 2016) examine financial synergy as an acquisition goal to company performance but there is no research that uses firm reputation as a mediator. Based on research by (Cheny & Gayle, 2018;Fong, Lee, & Du, 2013;Hassan, Ghauri, & Mayrhofer, 2018;Jenner, Sautner, & Suchard, 2017;Matarazzo, De Vanna, Lanzilli, & Resciniti, 2017;Sigera & Cahoon, 2018;Waeraas & Sataøen, 2015) operational synergies and financial synergies as acquisition goals have an impact on (Cabral, 2016;Cellier & Chollet, 2016;Chalençon, Colovic, Lamotte, & Mayrhofer, 2017;Erden, Klang, Sydler, & von Krogh, 2015;Gao, Zuzul, Jones, & Khanna, 2017;Haleblian et al, 2017;Popli, Ladkani, & Gaur, 2017;Zavyalova, Pfarrer, Reger, & Hubbard, 2016) firm reputation and have a significant positive relationship on company performance.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Acquisition Synergy on Firm Perfomance moderated by Firm Reputation

Edi¹,

Basri²,

Arafah³

2020

jafas

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This study was conducted to examine the impact of the operating synergy, financial synergy and firm reputation toward firm performance in merger and acquisition processes. This study also examines how firm reputation moderates the impact of operating synergy and financial synergy toward firm performance. The object of this research are companies involved in mergers and acquisitions between 2010 and 2016. Design/methodology/approach: The purposive sampling method is used to select the research sample. The descriptive statistical test, outlier test and hypothesis test is used to analyze the data using e-eviews program. The study assumed Buy and Hold Abnormal Return (BHAR) as the performance to measure a successful acquisition, and the factors that have an impact on acquisition performance are taken as being operating synergy, financial synergy and firm reputation. Findings: The results of this study show that by maximizing the operating synergy and firm reputation, this can improve the BHAR of an acquisition event, and a firm will a weak reputation can strengthen the BHAR by maximizing the operating synergy. Practical implications: These findings will be very helpful to management to maximize their firm performance using merger and acquisition as their strategy and firm reputation as their intangible resources. Originality/value: This article provides a new insight of acquisition research as to how firm reputation moderates the impact of acquisition synergy to achieve firm performance.

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The effects of social ratings on firm value

Cited by 34 publications

References 69 publications

Bridging the gap: How sustainable development can help companies create shareholder value and improve financial performance

Bridging the gap: How sustainable development can help companies create shareholder value and improve financial performance

Corporate Sustainability and Shareholder Wealth—Evidence from British Companies and Lessons from the Crisis

The Effect of Acquisition Synergy on Firm Perfomance moderated by Firm Reputation

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