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

Gómez‐Bezares, Fernando; Przychodzeń, Wojciech; Przychodzeń, Justyna

doi:10.3390/su8030276

Cited by 35 publications

(42 citation statements)

References 116 publications

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“…We also share the opinion that the usage of ESG criteria is profitable over the long run, however fund managers surveyed in our study generally perceive ESG screening as a protection against short-term risk. Thus, it can be interpreted as a behavioral act [86].…”

Section: Discussionmentioning

confidence: 99%

ESG Issues among Fund Managers—Factors and Motives

Przychodzeń¹,

Gómez‐Bezares

Przychodzeń

et al. 2016

Sustainability

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This paper investigates the motives, behavior, and characteristics shaping mutual fund managers' willingness to incorporate Environmental, Social and Governance (ESG) issues into investment decision making. Using survey evidence from fund managers from five different countries, we demonstrate that this predisposition is the stronger, the shorter their average forecasting horizon and the higher their level of reliance on business risk in portfolio management is. We also find that the propensity to incorporate ESG factors is positively related to an increasing level of risk aversion, an increasing importance of salary change and senior management approval/disapproval as motivating factors as well as length of professional experience in current fund and increasing significance of assessment by superiors in remuneration. Overall, our evidence suggests that ESG diligence among fund managers serves mainly as a method for mitigating risk and is typically motivated by herding; it is much less important as a tool for additional value creation. The prevalent use of ESG criteria in mitigating risk is in contrast with traditional approach, but it is in line with behavioral finance theory. Additionally, our results also show a strong difference in the length of the forecasting horizon between continental European and Anglo-Saxon fund managers.

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Section: Discussionmentioning

confidence: 99%

ESG Issues among Fund Managers—Factors and Motives

Przychodzeń¹,

Gómez‐Bezares

Przychodzeń

et al. 2016

Sustainability

Self Cite

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“…The impact of corporate sustainability on stock market returns has been a very common area of research [38], as well as the consequences of sustainability index inclusions and exclusions on corporate values [39][40][41]. Another important area of financial management and sustainability connections is the discussion of the relationship between social and environmental performance and financial performance [42][43][44][45][46][47].…”

Section: Earnings Quality Around Going Public: the Existing Evidencementioning

confidence: 99%

Towards Economic Corporate Sustainability in Reporting: What Does Earnings Management around Equity Offerings Mean for Long-Term Performance?

Lizińska

Czapiewski

2018

Sustainability

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Companies are very important contributors to the long-term sustainable wealth of economies and society. Public companies are likely to be especially important for economic, environmental, and social development. That is why we focus on initial public offerings (IPO). Responsible external reporting relates to the long-term value of companies and influences perceptions of value by stakeholders. This study contributes to the literature not only because it concentrates on earning quality in terms of going public, but it also combines it with another market puzzle, namely, long-term value. Previous conclusions for other markets should not simply be generalized for Poland, as the country has been an emerging market with many public firms controlled by insiders, with a limited role for the equity market and quite considerable bank financing. Using a unique dataset, we find positive and significant discretionary accruals in the IPO year, which may be perceived as a sign of poor earning quality. We also show that these accruals are negatively correlated with subsequent long-term market value for IPOs made before the financial crisis. The general conclusions are robust with respect to the latest innovations in proxies for earnings management, and also to a variety of alternative specifications.

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“…Doane and MacGillivray (2001) view sustainability as long-term survival from all the three aspects of environmental, social and economic. Hence all the three objectives of the three pillars of sustainability should complement each other (Gomez-Bezares, Przychodzen, & Przychodzen, 2014). The word sustainable has also been generally perceived as able to 'maintain' or 'continue to last', endlessly increasing or ongoing with time frame referring to long, future and indefinitely (Markulev & Long, 2013;Owens & Legere, 2015;Kopnina, 2015).…”

Section: Defining Sustainable Growthmentioning

confidence: 99%

Sustainable Growth in SMEs: A Review from the Malaysian Perspective

Yusoff¹,

Wahab²,

Latiff³

et al. 2018

JMS

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The importance of Small and Medium Enterprises (SMEs) contributions to the nations' economies in the world is an undebatable fact. The same applies to Malaysia with 98.5% of the total business establishments being SMEs; contributing to 65.3% of total employment and 36.3% of GDP. Supports from the Government are never fading with huge allocations of budget every year but yet registering high failure rate. Sustainable growth of SMEs is long overdue. The awareness of the importance of sustainable growth of SMEs has resulted in the presence of various definitions and concepts of sustainable growth. This paper seeks to explore the literature on long-term and sustainable growth for SMEs and the enhanced knowledge on this area willbe aguidance to the policy makers, supporting agencies, advisors, entrepreneurs and academicians to seriously develop an all-encompassing model for sustainable growth of SMEs. This paper suggests an integrated sustainable growth model of SMEs with four dimensions of the economic factors.

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

Cited by 35 publications

References 116 publications

ESG Issues among Fund Managers—Factors and Motives

ESG Issues among Fund Managers—Factors and Motives

Towards Economic Corporate Sustainability in Reporting: What Does Earnings Management around Equity Offerings Mean for Long-Term Performance?

Sustainable Growth in SMEs: A Review from the Malaysian Perspective

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