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The market value of sustainable practices in the luxury industry: An identity mismatch and institutional theoretical perspective

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  • Feng, Yunting
  • Tong, Xun
  • Zhu, Qinghua

Abstract

Shareholders of luxury firms uphold a view of identity mismatch between being luxury and sustainable. We examine the associated market value with sustainable practice adoption of luxury firms from an institutional theoretical lens and an identity mismatch perspective. Based on 289 announcements made by public luxury firms, results from event study show that the stock market reacts negatively to the announcements of sustainable practices. Nevertheless, the negative effect attenuates in more recent year announcements, and more profitable and smaller luxury firms. Our results alert managers to better align their sustainability goals with luxury firms' identity and the ever-changing environment.

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  • Feng, Yunting & Tong, Xun & Zhu, Qinghua, 2020. "The market value of sustainable practices in the luxury industry: An identity mismatch and institutional theoretical perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:transe:v:137:y:2020:i:c:s1366554519314115
    DOI: 10.1016/j.tre.2020.101919
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    2. Shen, Bin & Minner, Stefan & Chan, Hau-Ling & Brun, Alessandro, 2020. "Logistics and supply chain management in the luxury industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).

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