Under what conditions does it pay to be sustainable? Sources of heterogeneity in corporate sustainability impacts

Ibtisam Al Abri; Xiang Bi; Conner Mullally; Alan Hodges

doi:10.1016/j.econlet.2017.07.013

Under what conditions does it pay to be sustainable? Sources of heterogeneity in corporate sustainability impacts

Ibtisam Al Abri, Xiang Bi^*, Conner Mullally, Alan Hodges

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

10 Citations (Scopus)

Abstract

Empirical evidence on the effect of adopting corporate sustainability (CS) practices on a firm's financial performance has been mixed. Using panel data from 463 US firms, we employ propensity score matching (PSM), Difference-in-Differences (DID), and Quantile DID to examine the extent to which a firm's size, CS adoption intensity, and industry sector affected its financial performance from 2000 to 2012. Our findings suggest CS adoption had heterogeneous effects on corporate financial performance.

Original language	English
Pages (from-to)	15-17
Number of pages	3
Journal	Economics Letters
Volume	159
DOIs	https://doi.org/10.1016/j.econlet.2017.07.013
Publication status	Published - Oct 2017
Externally published	Yes

Keywords

Corporate financial performance
Corporate sustainability
Dow Jones sustainability index
Propensity score matching
Quantile difference in differences

ASJC Scopus subject areas

Finance
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.econlet.2017.07.013

Cite this

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title = "Under what conditions does it pay to be sustainable? Sources of heterogeneity in corporate sustainability impacts",

abstract = "Empirical evidence on the effect of adopting corporate sustainability (CS) practices on a firm's financial performance has been mixed. Using panel data from 463 US firms, we employ propensity score matching (PSM), Difference-in-Differences (DID), and Quantile DID to examine the extent to which a firm's size, CS adoption intensity, and industry sector affected its financial performance from 2000 to 2012. Our findings suggest CS adoption had heterogeneous effects on corporate financial performance.",

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AU - Al Abri, Ibtisam

AU - Bi, Xiang

AU - Mullally, Conner

AU - Hodges, Alan

PY - 2017/10

Y1 - 2017/10

N2 - Empirical evidence on the effect of adopting corporate sustainability (CS) practices on a firm's financial performance has been mixed. Using panel data from 463 US firms, we employ propensity score matching (PSM), Difference-in-Differences (DID), and Quantile DID to examine the extent to which a firm's size, CS adoption intensity, and industry sector affected its financial performance from 2000 to 2012. Our findings suggest CS adoption had heterogeneous effects on corporate financial performance.

AB - Empirical evidence on the effect of adopting corporate sustainability (CS) practices on a firm's financial performance has been mixed. Using panel data from 463 US firms, we employ propensity score matching (PSM), Difference-in-Differences (DID), and Quantile DID to examine the extent to which a firm's size, CS adoption intensity, and industry sector affected its financial performance from 2000 to 2012. Our findings suggest CS adoption had heterogeneous effects on corporate financial performance.

KW - Corporate financial performance

KW - Corporate sustainability

KW - Dow Jones sustainability index

KW - Propensity score matching

KW - Quantile difference in differences

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VL - 159

SP - 15

EP - 17

JO - Economics Letters

JF - Economics Letters

ER -

Under what conditions does it pay to be sustainable? Sources of heterogeneity in corporate sustainability impacts

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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