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The determinants of corporate sustainability performance

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  • Tracy Artiach
  • Darren Lee
  • David Nelson
  • Julie Walker

Abstract

This paper investigates the factors that drive high levels of corporate sustainability performance (CSP), as proxied by membership of the Dow Jones Sustainability World Index. Using a stakeholder framework, we examine the incentives for US firms to invest in sustainability principles and develop a number of hypotheses that relate CSP to firm‐specific characteristics. Our results indicate that leading CSP firms are significantly larger, have higher levels of growth and a higher return on equity than conventional firms. Contrary to our predictions, leading CSP firms do not have greater free cash flows or lower leverage than other firms.

Suggested Citation

  • Tracy Artiach & Darren Lee & David Nelson & Julie Walker, 2010. "The determinants of corporate sustainability performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(1), pages 31-51, March.
    • Handle: RePEc:bla:acctfi:v:50:y:2010:i:1:p:31-51
    DOI: 10.1111/j.1467-629X.2009.00315.x
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    References listed on IDEAS

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