| Autor: |
Bodhanwala, Shernaz, Bodhanwala, Ruzbeh |
| Zdroj: |
International Journal of Business Excellence; 2019, Vol. 19 Issue: 1 p100-118, 19p |
| Abstrakt: |
Present actions of the company have an influence on its long-term success as well as on the well-being of the society, ecosystem and environment. Sustainable investing is gaining critical attention world-wide. This study aims to empirically test whether corporate sustainability (CS) has an impact on market value. The relationship is examined using the panel data of Indian non-financial firms from 2010 to 2015 that are consistently ranked by Thomson Reuters ASSET4 database. Taking market value as proxy for firm value, a significant positive relationship is found between CS and market value. We find evidence to support firms that employ sustainable strategies in business policy formulations are better rewarded by investors with higher valuations in capital markets. This study provides empirical support for the stakeholder theory as is perceived by the proponents of ethical business practices. It suggests that businesses that seek capital market appreciation can likely achieve it by aligning corporate virtue of profit to ESG which helps to build social reputation and brand for the firm. |
| Databáze: |
Supplemental Index |
| Externí odkaz: |
|
