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Do Investors Value Sustainability Reports? A Canadian Study
Author(s) -
Berthelot Sylvie,
Coulmont Michel,
Serret Vanessa
Publication year - 2012
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.285
Subject(s) - sustainability , sustainability reporting , accounting , business , stock exchange , standardization , capital market , sample (material) , voluntary disclosure , relevance (law) , value (mathematics) , stock (firearms) , corporate social responsibility , finance , public relations , political science , geography , ecology , chemistry , archaeology , chromatography , machine learning , computer science , law , biology
The publication of sustainability reports has increased significantly in most western countries in recent years. The fact that this type of reporting is on a voluntary basis in a number of countries raises questions about whether capital markets take these reports into account. This study attempts to address this question, drawing on a sample of Canadian companies listed on the Toronto Stock Exchange. The results suggest that investors positively value this type of reporting. These findings support the relevance of initiatives like the Global Reporting Initiative, the UN Global Compact, and that launched by the International Organization for Standardization (ISO), which focus on the development of recognized guidelines for sustainability reporting. Our findings can also serve as arguments to facilitate a firm's voluntary commitment to such types of disclosures. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.