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Sustainable Development, Sustainability Leadership and Firm Valuation: Differences across Europe
Author(s) -
MirallesQuiros Maria del Mar,
MirallesQuiros Jose Luis,
Arraiano Irene Guia
Publication year - 2017
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.1964
Subject(s) - sustainability , business , credibility , sustainable development , social sustainability , valuation (finance) , corporate social responsibility , context (archaeology) , accounting , sustainability organizations , stock (firearms) , public relations , political science , mechanical engineering , ecology , paleontology , law , biology , engineering
Sustainable development is nowadays a high priority for firms all over the world. Consequently, numerous firms have increased their social responsibility initiatives, reinforcing the credibility and trust of their stakeholders. However, prior research about the relevance of sustainability leadership for the European investment community is scarce. In this context, the aim of this study is to examine whether sustainability leadership – proxied by membership of the Dow Jones Sustainability Index Europe – is value relevant for investors on the 10 major European stock markets over the 2001–2013 period. Our overall results reveal that there exist significant differences across markets. These findings are relevant especially for investors, but also for the managers of listed firms, market regulators and policymakers. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment