Corporate Sustainability Management and Its Market Benefits

Sustainability

Joonhyun Kim¹  Jinsoo Kim¹ 

[1] School of Business, Hanyang University, 222 Wangsimni-ro, Seongdong-gu, Seoul 04763, Korea;

关键词: corporate sustainability;    social responsibility;    sustainability management report;    firm value;    earnings announcement;   

DOI  :  10.3390/su10051455

来源: DOAJ

【 摘 要 】

An increasing number of firms around the world are applying corporate sustainability management (CSM) to their business operations, and the research interest on the effect of CSM in terms of the capital market benefit has grown rapidly under the different research settings across various countries. This study investigates whether CSM contributes to increasing firm value and improving the market response to earnings disclosure, using Korean firms as the sample. The test results show that firms with CSM reporting outperform the other firms in terms of Tobin’s Q and the market-adjusted stock returns over a year. Further, investors respond more strongly to the earnings announcement events of the CSM firms than the non-CSM firms, which is more likely to be attributed to the enhanced corporate disclosure practice of the CSM firms than an improvement in earnings quality. Our findings indicate that the shareholders of firms with CSM reporting can enjoy relatively higher market valuations and enhanced information content of earnings disclosures. In conclusion, the results show that the CSM activities in pursuit of a harmonious relationship with the various stakeholders bring different forms of market benefits to shareholders as well.

【 授权许可】

Unknown