Signaling Sustainability Leadership: Empirical Evidence of the Value of DJSI Membership

Robinson, Michael L.; Kleffner, Anne; Bertels, Stephanie

doi:10.1007/s10551-011-0735-y

Cited by 220 publications

(182 citation statements)

References 37 publications

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“…In this respect, research that examined the relationship between DJSI and long-term market value is sparse and not conclusive (cf. Robinson et al, 2011), therefore adding doubts about the ability of this external benchmark to send credible signals to the investors community.…”

Section: Discussionmentioning

confidence: 99%

“…In addition, institutional investors are increasingly relying on these indices to create their portfolios, albeit prior research that examined the effects of DJSI's addition/deletion is limited (López et al, 2007;Ziegler and Schroder, 2010;Wai Kong Cheung, 2011). More recently, Robinson et al (2011) provide evidence that being added to the DJSI results in sustained increase in a firm's share price, suggesting that the benefits of being included on the index outweigh the costs associated with complying with the ranking criteria. In this article, we are interested to document whether the DJSI is used as external benchmark in the design of sustainability incentives as alternative to internal benchmarks based on a set of specific firm sustainability metrics.…”

Section: Linking Sustainability To Compensation: Emerging Practices Amentioning

confidence: 99%

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Sustainable Bonuses: Sign of Corporate Responsibility or Window Dressing?

2013

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Section: Discussionmentioning

confidence: 99%

Section: Linking Sustainability To Compensation: Emerging Practices Amentioning

confidence: 99%

Sustainable Bonuses: Sign of Corporate Responsibility or Window Dressing?

2013

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“…Stock market indices offer a suitable tool to measure sustainability performance of firms, such as the widely used Dow Jones Sustainability Index (DJSI) [32][33][34]. Critics to this approach argue about the inherent problem of establishing suitable weighting for the contribution of different dimensions towards total sustainability [6].…”

Section: Measures Of Total Sustainabilitymentioning

confidence: 99%

The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential

2018

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This paper presents an analysis of the literature concerning the impact of corporate sustainability on corporate financial performance. The relationship between corporate sustainable practices and financial performance has received growing attention in research, yet a consensus remains elusive. This paper identifies developing trends and the issues that hinder conclusive consensus on that relationship. We used content analysis to examine the literature and establish the current state of research. A total of 132 papers from top-tier journals are shortlisted. We find that 78% of publications report a positive relationship between corporate sustainability and financial performance. Variations in research methodology and measurement of variables lead to the divergent views on the relationship. Furthermore, literature is slowly replacing total sustainability with narrower corporate social responsibility (CSR), which is dominated by the social dimension of sustainability, while encompassing little to nothing of environmental and economic dimensions. Studies from developing countries remain scarce. More research is needed to facilitate convergence in the understanding of the relationship between corporate sustainable practices and financial performance.

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“…This signaling theory is based on Spence's [39] work. Several previous studies related to sustainability reporting have used the signaling theory: Dawkins and Ngunjiri [40], Mishra and Suar [41], Robinson et al [42], Thorne et al [43], Reimsbach and Hahn [44] and Grabara [45]. The current study explores and examines whether the Sustainability Reporting Award (SRA) can improve the value relevance of the financial statements as part of the accounting information based on the decision usefulness approach to financial reporting and signaling theory.…”

Section: Sustainability Reporting and Value Relevance Of Accounting Imentioning

confidence: 99%

Sustainability Reporting and Value Relevance of Financial Statements

et al. 2018

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This study examines whether information about the winners of the Sustainability Reporting Award (SRA) contributes to the usefulness of the information in financial statements. This study used a sample consisting of 110 winners of SRA (SRA firms) and 110 companies that did not receive SRA (non-SRA firms) from 2008 to 2016. The study found that earnings per share (EPS), earnings per share change (EPSC), and book value per share (BVPS) are value-relevant information. Results of comparison between SRA firms and non-SRA firms show that the positive association between EPS and stock price (P) and the positive association of EPS with stock returns (R) for SRA firms are higher than that for the non-SRA firms. In addition, findings of this study indicate that EPSC is positively associated with R when EPSC and R are measured by Indonesian rupiah (IDR) instead of by percentage, and the positive association between EPSC and R for the SRA firms is higher than that for the non-SRA firms. Thus, the results are sensitive to measures of the variables. However, this study found that value relevance of BVPS for SRA firms is lower than for non-SRA firms. Implication of this study is that information about the winners of SRA contributes to the usefulness of financial statements, especially the information of EPS and EPSC.

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Signaling Sustainability Leadership: Empirical Evidence of the Value of DJSI Membership

Abstract: corporate social responsibility (CSR), Dow Jones Sustainability Index (DJSI), financial performance, reputation, sustainability, sustainability leadership,

Cited by 220 publications

References 37 publications

Sustainable Bonuses: Sign of Corporate Responsibility or Window Dressing?

Sustainable Bonuses: Sign of Corporate Responsibility or Window Dressing?

The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential

Sustainability Reporting and Value Relevance of Financial Statements

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