The value of a ‘just’ firm

IF 3.6 Q1 BUSINESS, FINANCE
Rosemond Desir, Patricia A. Ryan, Lumina Albert
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引用次数: 0

Abstract

Purpose

The study aims to investigate market reactions associated with the JUST 100 rankings published by JUST Capital, a non-profit organization, as well as differences in financial reporting quality and performance between selected firms and their industry peers.

Design/methodology/approach

This study uses a sample of 431 firms selected as the 100 America’s Most Just Companies between 2016 and 2020 by JUST Capital. This study performs both an event study to determine whether the rankings are useful to investors and cross-sectional regression analyses on the characteristics of selected firms compared to their peers.

Findings

This study finds that investors react positively to selected firms around the time of the release of the JUST 100 rankings, suggesting that the rankings are decision-useful. This study also finds that selected firms exhibit higher accounting quality and financial performance than their peers.

Research limitations/implications

Rankings may not be free from bias because of JUST Capital’s ownership of an exchange-traded fund.

Social implications

The findings validate the rankings as well as the methodology used by JUST Capital, as they show market participants value firms that engage in socially responsible actions through their commitment to positively impact five key stakeholder groups: employees, customers, communities, environment and shareholders.

Originality/value

To the best of the authors’ knowledge, this is the first study that shows the importance of the JUST 100 rankings for investment decisions. Considering the growing push for companies to disclose environmental, social and governance (ESG) activities, this study provides evidence to support ESG disclosure regulations.

公正 "公司的价值
目的本研究旨在调查与非营利组织 JUST Capital 发布的 JUST 100 排名相关的市场反应,以及入选企业与行业同行在财务报告质量和绩效方面的差异。本研究既进行了事件研究,以确定排名是否对投资者有用,又对入选企业与同行相比的特征进行了横截面回归分析。研究结果本研究发现,在 JUST 100 排名发布前后,投资者对入选企业反应积极,这表明排名对决策有用。本研究还发现,入选企业的会计质量和财务表现均高于同类企业。研究局限/意义由于 JUST Capital 拥有一家交易所交易基金,因此排名可能不存在偏差。社会影响研究结果验证了 JUST Capital 所使用的排名和方法,因为这些结果表明,市场参与者重视那些通过承诺对员工、客户、社区、环境和股东这五个主要利益相关者群体产生积极影响而参与社会责任行动的公司。考虑到要求公司披露环境、社会和治理 (ESG) 活动的呼声日益高涨,本研究为支持 ESG 披露法规提供了证据。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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