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Do environmental social controls matter to Australian capital investment decision‐making?
Author(s) -
Ross Donald G.,
Wood Dorothy
Publication year - 2008
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.622
Subject(s) - subsidy , mainstream , stakeholder , investment (military) , business , capital (architecture) , public economics , stakeholder engagement , investment decisions , finance , economics , market economy , public relations , politics , behavioral economics , political science , law , management , archaeology , history
This paper looks at how environmental social controls (ESCs), namely mandatory disclosure, regulation, subsidies and stakeholder opinion, are perceived in terms of their relative importance by Australian capital investment managers. We find that regulation and stakeholder opinion are the most important ESCs. Subsidies generally have less influence, while mandatory disclosure has almost no impact on capital investment decisions. However, even the more important ESCs have much less than impact than mainstream financial and strategic factors. Policy makers seeking to influence capital investment managers will have to increase the power levels of the various ESCs if they are to change behaviour. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.