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Firms’ Sustainability Performance and Market Longevity

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  • Fafaliou, Irene
  • Giaka, Maria
  • Konstantios, Dimitrios
  • Polemis, Michael

Abstract

This study examines the impact of sustainability (ESG) on US listed firms’ exit decision. Using a recent dataset of a large number of US firms over the period 2007- 2016, we perform a dynamic empirical analysis of the relation between ESG and firms’ exiting mechanism by measuring environmental, social and governance issues. We provide evidence that corporate sustainability is a tool that can reduce risks and enable companies to boost surviving mechanisms and face less probability of failure. Finally, we perform several statistical tests for robustness purposes

Suggested Citation

  • Fafaliou, Irene & Giaka, Maria & Konstantios, Dimitrios & Polemis, Michael, 2020. "Firms’ Sustainability Performance and Market Longevity," MPRA Paper 101445, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:101445
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    More about this item

    Keywords

    Sustainability; Longevity; Corporate Sustainability Performance;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G3 - Financial Economics - - Corporate Finance and Governance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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