Corporate Environmental Performance Leading Financial Performance: Impacts of Social Media Sentiment and Corporate Reputation

IF 12.5 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-02-13 DOI:10.1002/bse.4201

Tiasha Islam, Murugesh Arunachalum, Nirosha Wellalage, Samuel Benjamin

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引用次数: 0

Abstract

This study examines the interplay between social media sentiment (SMS) and corporate reputation (CR) in shaping the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP). Using a dataset of S&P 500 companies from 2017 to 2022, the results indicate that both CR and SMS positively influence the CEP–CFP relationship. However, when firms have weak reputations, a strong social media presence does not translate positive CEP into improved CFP. This research is among the first to explore the combined impact of SMS and CR on the CEP–CFP relationship, addressing the notable gap in the literature. In addition, the empirical findings offer insights into resource‐based views, legitimacy and ethical investment theories by demonstrating environmental performance as a competitive advantage. This aligns with the ethical investment theory's premise that stakeholders value environmentally responsible business practices. Finally, the study provides practical implications for managers, emphasising the importance of prioritising efforts to build and maintain a positive reputation for effective communication through social media.

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来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.