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Corporate Sustainability: Do Executives And Investors Care?- An Empirical Study

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  • Sekhar Amba

Abstract

This research examines the association between corporate sustainability reporting ESG score and firm’s financial performance, Executive compensation. Empirical analysis is performed on firms listed on S&P 500 and S&P/TSX firms. Regression method is used to test the impact of ESG score of a year on next years’ ROE and Executive compensation. Empirical evidence suggests that ESG scores of an year has an impact on ROE of the following year during the period of investigation 2011 to 2015, whereas ESG scores showed similar impact on Executive compensation from the year 2013 onwards suggesting executive compensation is tied to corporate sustainability performance

Suggested Citation

  • Sekhar Amba, 2018. "Corporate Sustainability: Do Executives And Investors Care?- An Empirical Study," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 11(1), pages 19-26.
    • Handle: RePEc:ibf:ijmmre:v:11:y:2018:i:1:p:19-26
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    References listed on IDEAS

    as
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    4. Alexander Bassen & Ana Maria Kovács, 2008. "Environmental, Social and Governance Key Performance - Indicators from a Capital Market Perspective," Zeitschrift für Wirtschafts- und Unternehmensethik - Journal for Business, Economics & Ethics, Rainer Hampp Verlag, vol. 9(2), pages 182-192.
    5. Ioannis Ioannou & George Serafeim, 2015. "The impact of corporate social responsibility on investment recommendations: Analysts' perceptions and shifting institutional logics," Strategic Management Journal, Wiley Blackwell, vol. 36(7), pages 1053-1081, July.
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    More about this item

    Keywords

    Sustainability; ESG; ROE; Executive Compensation;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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