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Stakeholder relations and financial performance

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  • Bert Scholtens

    (Department of Finance, University of Groningen, Groningen, The Netherlands)

  • Yangqin Zhou

    (Department of Finance, University of Groningen, Groningen, The Netherlands)

Abstract

We analyze how shareholder performance can be associated with stakeholder relations. As such, we try to find out whether there is an association between financial performance and stakeholder relations with respect to different theoretical notions about the firm. Financial performance is operationalized as the financial return of a firm's shares. For stakeholder relations, we look into community involvement, corporate governance, employee relations, environmental conduct, diversity of the workforce, human rights policies and product attributes. We find that the different components of stakeholder relations appear to be associated in a complex manner with shareholder performance. Therefore, it adds value to look closely into the details of stakeholder relations in connection with financial performance. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Bert Scholtens & Yangqin Zhou, 2008. "Stakeholder relations and financial performance," Sustainable Development, John Wiley & Sons, Ltd., vol. 16(3), pages 213-232.
  • Handle: RePEc:wly:sustdv:v:16:y:2008:i:3:p:213-232
    DOI: 10.1002/sd.364
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    References listed on IDEAS

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    Cited by:

    1. Cellier, Alexis & Chollet, Pierre, 2016. "The effects of social ratings on firm value," Research in International Business and Finance, Elsevier, vol. 36(C), pages 656-683.
    2. Rocco Ciciretti & Ambrogio Dalò & Lammertjan Dam, 2017. "The Price of Taste for Socially Responsible Investment," CEIS Research Paper 413, Tor Vergata University, CEIS, revised 28 Jul 2017.
    3. Semenova, Natalia & Hassel, Lars & Nilsson, Henrik, 2009. "The Value Relevance of Environmental and Social Performance: Evidence from Swedish SIX 300 Companies," Sustainable Investment and Corporate Governance Working Papers 2009/4, Sustainable Investment Research Platform.
    4. Semenova, Natalia, 2010. "Corporate Environmental Performance: Consistency of Metrics and Identification of Drivers," Sustainable Investment and Corporate Governance Working Papers 2010/9, Sustainable Investment Research Platform.
    5. Chung, Huimin & Lin, Jane Raung & Yang, Ying Sui, 2012. "How do entrenched managers handle stakeholders interests?," Journal of Multinational Financial Management, Elsevier, vol. 22(5), pages 263-277.
    6. Tiago Melo, 2012. "Slack-resources hypothesis: a critical analysis under a multidimensional approach to corporate social performance," Social Responsibility Journal, Emerald Group Publishing, vol. 8(2), pages 257-269, June.
    7. Alexis Cellier & Pierre Chollet & Jean-François Gajewski, 2011. "Les annonces de notations extrafinancières véhiculent-elles une information au marché?," Revue Finance Contrôle Stratégie, revues.org, vol. 14(3), pages 5-38, September.
    8. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    9. Alexis Cellier & Pierre Chollet & Jean-François Gajewski, 2011. "Les annonces de notations extra financières véhiculent-elles une information au marché ?," Post-Print hal-00950507, HAL.
    10. Galema, Rients & Plantinga, Auke & Scholtens, Bert, 2008. "The stocks at stake: Return and risk in socially responsible investment," Journal of Banking & Finance, Elsevier, vol. 32(12), pages 2646-2654, December.

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