Corporate sustainability and financial performance: Collective reputation as moderator of the relationship between environmental performance and firm market value

Kim, Seonghoon; Terlaak, Ann; Potoski, Matthew

doi:10.1002/bse.2702

Cited by 37 publications

(33 citation statements)

References 86 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The dependent variable is firm value. At present, scholars usually use Tobin's Q as a proxy for firm value (Lee and Min, 2015;Kim et al, 2021;Tang et al, 2021), which can reflect the market value of enterprises based on stock prices and is difficult for enterprise management to manipulate (Srinivasan and Hanssens, 2009). Consistent with previous studies, we use Tobin's Q as the proxy variable for firm value.…”

Section: Firm Valuementioning

confidence: 83%

“…Consistent with previous studies, we use Tobin's Q as the proxy variable for firm value. Referring to Kim et al (2021)…”

Section: Firm Valuementioning

confidence: 99%

“…To alleviate the bias caused by the unobservable heterogeneity of firms, we controlled for firm-level characteristics when examining green innovation's impact on firm value. First, we constructed four variables to capture firms' financial characteristics, including leverage ratio, size, return on assets, and sales growth ratio (Kim et al, 2021;Tang et al, 2021;Liu et al, 2021). The leverage ratio was proxied by the ratio of total liabilities to total assets.…”

Section: Control Variablesmentioning

confidence: 99%

See 2 more Smart Citations

Impact of Green Innovation on Firm Value: Evidence From Listed Companies in China’s Heavy Pollution Industries

2022

View full text Add to dashboard Cite

The unspecified impact of green innovation on corporate financial performance has made some enterprises delay green innovation investment plans, and even abandon green innovation. Mitigating the economic concerns faced in the process of green innovation decision-making is of great significance to accelerate the process of enterprises’ green transformation. Using an unbalanced panel data of Chinese heavy pollution listed companies from 2008-2017, this paper investigates the impact of green innovation on firm value. We further test the likely channels through which green innovation can affect firm value, including the financial flexibility channel and analyst coverage channel. The study finds that: 1) increasing the proportion of green patent applications leads to the devaluation of firm value, but this devaluation effect only occurs in the short term; 2) both financial flexibility and analyst coverage partially mediate the impact of green innovation on firm value; 3) heterogeneity analysis indicates that enterprises can reduce the negative impact of green innovation on firm value by increasing the executive equity incentive and the management-employee pay gap. In addition, as economic policy uncertainty increases from low to high, the negative impact becomes smaller. Our research helps to broaden the cognitive boundaries of the economic impact of green innovation, and assists policymakers and researchers to better grasp the characteristics of green innovation behavior of enterprises in emerging economies. Finally, we provide useful enlightenments for policymakers and business managers to stimulate green innovation in enterprises.

show abstract

Section: Firm Valuementioning

confidence: 83%

“…Consistent with previous studies, we use Tobin's Q as the proxy variable for firm value. Referring to Kim et al (2021)…”

Section: Firm Valuementioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

See 1 more Smart Citation

Impact of Green Innovation on Firm Value: Evidence From Listed Companies in China’s Heavy Pollution Industries

2022

View full text Add to dashboard Cite

show abstract

“…Also, different authors (Benlemlih et al, 2018; Kim et al, 2020) empirically demonstrate that the disclosure of environmental and social information also performs as a tool to mitigate the total and idiosyncratic risks the firms by boosting corporate transparency and building a positive reputation. However, “CSR reporting without being supported by actions involves a reputational risk” (Pérez‐Cornejo et al, 2019, p. 8).…”

Section: Resultsmentioning

confidence: 99%

The “Six Ws” of sustainable development risks

2021

View full text Add to dashboard Cite

Risk management in an organization represents a decisive function in seizing opportunities and managing the risks that can affect a business's reputation, prosperity, growth, value creation, stakeholder engagement, long‐term survival, and a firm's contribution to sustainable development. For this paper, we conduct a systematic literature review of 148 indexed studies and uses the “Six Ws” (what, who, why, where, when, and how) approach to understand the linkages between sustainability and risk management. This study's findings reveal that the management of environmental, social, and governance (ESG) concerns plays a mitigation's function on business risks.

show abstract

“…Values can also be defined as principles, qualities, and characteristics that are genuinely valuable and desirable. These values are associated with quality, meaning, and desire, leading to a marketing definition of value and further to the statement that it can be a key factor in intrinsic consumer motivation (Kim et al, 2020;Voorn et al, 2021). Values influence the sense of importance, recognition, and significant meaning.…”

Section: Values In Marketing (Materials and Non-material)mentioning

confidence: 99%

The Relationship between Consumers‘ Characteristics and the Expectations towards a Brand‘s Value

Rzemieniak¹,

Wyrwisz²,

Toborek³

2021

ERSJ

View full text Add to dashboard Cite

Purpose: The subject of this article is the identification and evaluation of communicated values and values actually declared by consumers' gender and age.Design/Methodology/Approach: The article presents a research approach based on a literature query and empirical research. Beginning by presenting the essence of both material and non-material values in marketing, the focus is on the values pyramid communicated by brands. The empirical research was conducted by the method of a diagnostic survey using a questionnaire on a representative sample of 1000 respondents. The principal research was preceded by a pilot survey. The research results were statistically processed using the Chi-square test of independence, the Mann-Whitney U test, the Kruskal-Wallis test, post-hoc Dunn test with Benjamini-Hochberg correction. Findings: The research analysis indicates differences in the assessment of declared and expected values towards cosmetic product brands between women and men, in particular concerning functional and life-changing values. The assessment of the declared and expected values also changes depending on age. Substantially different assessment is shown by the group of the youngest respondents. A particular difference is noticeable concerning the aesthetic value, the brand prestige and the heritage, tradition, as well as brand history.Practical Implications: To develop the brand management capability, organizations may benefit from cultivating processes that seek to meet the latent customer needs through explorative and proactive information seeking, and at the same time, pursuing processes that focus on capturing the existing customer and competitor trends in the market. Originality/Value: This study borrows from the existing research on market orientation, branding and brand management to argue that organizations are required to verify the actual expected values towards brands. Enterprises should also verify the consistency of the values declared by brands with those actually expected by consumers.

show abstract

Corporate sustainability and financial performance: Collective reputation as moderator of the relationship between environmental performance and firm market value

Cited by 37 publications

References 86 publications

Impact of Green Innovation on Firm Value: Evidence From Listed Companies in China’s Heavy Pollution Industries

Impact of Green Innovation on Firm Value: Evidence From Listed Companies in China’s Heavy Pollution Industries

The “Six Ws” of sustainable development risks

The Relationship between Consumers‘ Characteristics and the Expectations towards a Brand‘s Value

Contact Info

Product

Resources

About