Eco-efficiency and firm value

Sinkin, Charlene; Wright, Charlotte J.; Burnett, Royce D.

doi:10.1016/j.jaccpubpol.2008.01.003

Cited by 145 publications

(144 citation statements)

References 40 publications

Supporting

Mentioning

128

Contrasting

Unclassified

Order By: Relevance

“…The result shows that environment (ENV) has a negative relationship with efficiency (EFF) and the coefficient is significant. While previous studies that focus on environment issues find a positive results between environment and firm efficiency (Al-Najjar & Anfimiadou, 2012;Derwall, 2007;Sinkin, Wright, & Burnett, 2008), this study argues that the focus of GLCs could be the reason for the negative association. DOI: 10.1051DOI: 10.…”

Section: Truncated Regression Modelcontrasting

confidence: 70%

The Effects of Environmental, Social and Governance on the Corporate Performance of Malaysian Government-Linked Companies

et al. 2017

View full text Add to dashboard Cite

This study examines the impacts of ESG on the corporate performance government-linked companies (GLCs) in Malaysia. For the period 2006-2012, ESG disclosure data were extracted from the Sustainalytics ESG performance reports, while financial data were obtained from the Bloomberg database. Data development analysis (DEA) was used to estimate efficiency in the first stage; a regression analysis was performed to test the relationship between ESG and efficiency in the second stage. The empirical results of this study show that GLCs focused more on governance disclosures, followed by social and environmental aspects. Moreover, governance will improve firm efficiency, but social and environmental factors have no similar effect. In conclusion, this study provides insight on the limited literature on ESG and informs the relevant stakeholders on the important ESG components for financial and investment decisions.

show abstract

Section: Truncated Regression Modelcontrasting

confidence: 70%

The Effects of Environmental, Social and Governance on the Corporate Performance of Malaysian Government-Linked Companies

et al. 2017

View full text Add to dashboard Cite

show abstract

“…This approach is currently used in several empirical studies on the value relevance of non-financial information (e.g. Rajgopal et al, 2003;Hassel et al, 2005;Matolcsy and Wyatt, 2008;Johnston et al, 2008;Sinkin et al, 2008;Schadewitz and Niskala, 2010). Our primary model shows that the market value of equity is a function of two summary measures of information reflected in financial statements, namely the book value of equity and earnings, given by equation (1).…”

Section: Table 1 42 Research Methodsmentioning

confidence: 99%

How Does the Market Value Corporate Sustainability Performance?

et al. 2011

View full text Add to dashboard Cite

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 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 undervalue 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.

show abstract

“…The diverse range of studies which analyze the link between CEP and CFP covers various measures, data, theories, methods, directions of causality, as well as plant, industry, and country specific contexts. While many studies demonstrate a positive relationship, e.g., [5][6][7], others provide evidence for a negative link between CEP and CFP, e.g., [8][9][10]. Furthermore, insignificant findings appear as well [11], e.g., [12].…”

Section: Introductionmentioning

confidence: 99%

The Link between Corporate Environmental and Corporate Financial Performance—Viewpoints from Practice and Research

Bergmann

2016

Sustainability

View full text Add to dashboard Cite

For more than 40 years, a tremendous number of studies have empirically explored the relationship between Corporate Environmental Performance (CEP) and Corporate Financial Performance (CFP). This study considers the relationship from a new perspective-via a qualitative research approach based on expert interviews. First, practitioners are queried for their view on the link between CEP and CFP and how to measure it. Since the vast majority see a positive relationship, this study contributes with a new form of evidence that it pays to be green. The chosen qualitative approach also allows a more detailed analysis of underlying cause-and-effect mechanisms. For instance, interviewed practitioners emphasize a direct and indirect impact from CEP on CFP. Second, the study conducts interviews with experts from research and associations (non-practitioners) and compares the viewpoints of the two interview groups. One prevalent difference refers to the fact that non-practitioners do not focus on the two impact levels. Moreover, business experts perceive the link between CEP and CFP as much less complex and reveal more pragmatically oriented considerations. The study then discusses how the interview results and identified differences can be used to direct future research and to support corporations in their move towards sustainability.

show abstract

Eco-efficiency and firm value

Cited by 145 publications

References 40 publications

The Effects of Environmental, Social and Governance on the Corporate Performance of Malaysian Government-Linked Companies

The Effects of Environmental, Social and Governance on the Corporate Performance of Malaysian Government-Linked Companies

How Does the Market Value Corporate Sustainability Performance?

The Link between Corporate Environmental and Corporate Financial Performance—Viewpoints from Practice and Research

Contact Info

Product

Resources

About