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Sustainable Development and Corporate Financial Performance: A Study Based on the FTSE4Good IBEX Index
Author(s) -
Charlo Maria J.,
Moya Ismael,
Muñoz Ana M.
Publication year - 2015
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.1824
Subject(s) - corporate social responsibility , index (typography) , leverage (statistics) , sustainability , sustainable development , business , order (exchange) , social responsibility , empirical research , investment (military) , finance , economics , accounting , public relations , ecology , philosophy , epistemology , machine learning , politics , world wide web , political science , computer science , law , biology
ABSTRACT The social and environmental aspects of business investment and financing are becoming increasingly important. Most studies on corporate social responsibility (CSR) focus on analysing the relationship between company performance in the financial and social fields. However, the results obtained have not been conclusive, mainly due to the variables used to measure CSR. In order to simplify its measurement, in this work we used an empirical analytical method to determine possible differences between the financial variables of firms considered to be socially responsible and those not considered to be such. The results obtained show that socially responsible corporations obtain higher profits for the same level of systematic risk and show greater sensitivity to market changes, leverage levels and company size. This pioneering study is the first to make use of the first, and at the present time only, Spanish sustainability index, the FTSE4Good IBEX. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.