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The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects

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  • Wagner, Marcus

Abstract

This paper analyses the link between sustainability management and economic performance. Its main research question concerns the association of social responsibility and environmental management with economic performance, determinants of the latter and possible moderation effects. Based on data collected from financial databases and Kinder Lydenberg Domini for the period 1992 to 2003, the paper analyses the link of corporate sustainability performance with economic performance using panel estimation techniques. The analysis shows that advertising intensity moderates the association of corporate sustainability performance and economic performance as measured by Tobin's q. For research and development efforts relative to firm size, no moderating role on the link between corporate sustainability and economic performance is identified. A sensitivity analysis using separate measures for social and environmental performance reveals that the latter only has a direct effect and the former only a fully moderated effect on economic performance. Policy and management implications of these findings are discussed.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 69 (2010)
Issue (Month): 7 (May)
Pages: 1553-1560

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Handle: RePEc:eee:ecolec:v:69:y:2010:i:7:p:1553-1560

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Economic performance Moderation Corporate sustainability Panel estimation;

References

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Citations

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Cited by:
  1. Fujii, Hidemichi & Iwata, Kazuyuki & Kaneko, Shinji & Managi, Shunsuke, 2012. "Corporate environmental and economic performances of Japanese manufacturing firms: Empirical study for sustainable development," MPRA Paper 39564, University Library of Munich, Germany.
  2. Patricia Crifo & Vanina Forget, 2013. "La responsabilité sociale et environnementale des entreprises : mirage ou virage ?," Working Papers hal-00830642, HAL.
  3. Francesco Perrini & Angeloantonio Russo & Antonio Tencati & Clodia Vurro, 2011. "Deconstructing the Relationship Between Corporate Social and Financial Performance," Journal of Business Ethics, Springer, vol. 102(1), pages 59-76, March.
  4. Isabel Lourenço & Jeffrey Callen & Manuel Branco & José Curto, 2014. "The Value Relevance of Reputation for Sustainability Leadership," Journal of Business Ethics, Springer, vol. 119(1), pages 17-28, January.
  5. Wagner, Marcus, 2011. "Corporate performance implications of extended stakeholder management: New insights on mediation and moderation effects," Ecological Economics, Elsevier, vol. 70(5), pages 942-950, March.
  6. Patricia Crifo & Vanina Forget, 2012. "The Economics of Corporate Social Responsibility: A Survey," Working Papers hal-00720640, HAL.
  7. Isabel Lourenço & Manuel Branco & José Curto & Teresa Eugénio, 2012. "How Does the Market Value Corporate Sustainability Performance?," Journal of Business Ethics, Springer, vol. 108(4), pages 417-428, July.
  8. Lioui, Abraham & Sharma, Zenu, 2012. "Environmental corporate social responsibility and financial performance: Disentangling direct and indirect effects," Ecological Economics, Elsevier, vol. 78(C), pages 100-111.

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