Corporate Sustainability and Cost of Equity Capital: Do Managerial Abilities Matter?
| Autor: | Abdelmajid Hmaittane, Kais Bouslah, Bouchra M’Zali, Imane Ibariouen |
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| Přispěvatelé: | University of St Andrews. Centre for the Study of Philanthropy & Public Good, University of St Andrews. Centre for Responsible Banking and Finance, University of St Andrews. School of Management |
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
HB Economic Theory
Managerial abilities HG Finance Renewable Energy Sustainability and the Environment Geography Planning and Development HB Financial crisis Building and Construction 3rd-DAS Management Monitoring Policy and Law Implied cost of equity capital HG corporate sustainability managerial abilities implied cost of equity capital CSR strengths financial crisis SDG 12 - Responsible Consumption and Production Corporate sustainability |
| Zdroj: | Sustainability; Volume 14; Issue 18; Pages: 11363 |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su141811363 |
| Popis: | This paper investigates whether a firm’s managerial ability affects the link between a firm’s cost of equity capital and corporate sustainability. We test our predictions by using a large U.S. sample of 17,389 firm-year observations. Our findings show that only when managerial ability is high, corporate sustainability significantly reduces a firm’s implied cost of equity capital. An important implication of our findings is that firms with high managerial abilities and limited sustainability commitment are encouraged to pursue or initiate more sustainability activities owing to their negative effect on a firm’s cost of equity capital. Publisher PDF |
| Databáze: | OpenAIRE |
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