< Précédent | Suivant > |
---|
Abstract
This article investigates whether investors consider the reliability of companies’ sustainability information when determining
the companies’ market value. Specifically, we examine market reactions (in terms of abnormal returns) to events that increase
the reliability of companies’ sustainability information but do not provide markets with additional sustainability information.
Controlling for competing effects, we regard companies’ additions to an internationally important sustainability index as
such events and consider possible determinants for market reactions. Our results suggest that first, investors take into account
the reliability of sustainability information when determining the market value of a company and second, the benefits of increased
reliability of sustainability information vary cross-sectionally. More specifically, companies that carry higher risks for
investors (e.g., higher systematic investment risk, higher financial leverage, and higher levels of opportunistic management
behavior) react more strongly to an increase in the reliability of sustainability information. Finally, we show that the benefits
of an increase in the reliability of sustainability information are higher in times of economic uncertainty (e.g., during
economic downturns and generally high stock price volatilities).
- Content Type Journal Article
- Pages 1-18
- DOI 10.1007/s10551-011-1026-3
- Authors
- Julia Lackmann, Ruhr-University Bochum, Universitätsstraße 150, 44801 Bochum, Germany
- Jürgen Ernstberger, Ruhr-University Bochum, Universitätsstraße 150, 44801 Bochum, Germany
- Michael Stich, Ruhr-University Bochum, Universitätsstraße 150, 44801 Bochum, Germany
- Journal Journal of Business Ethics
- Online ISSN 1573-0697
- Print ISSN 0167-4544