Corporate sustainability performance and informativeness of earnings

IF 1.1 Q4 BUSINESS
J. Saini, Mingming Feng, J. DeMello
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引用次数: 1

Abstract

PurposeWith the growing awareness about the environment and climate, sustainability has gained increased attention of investors. Many investors now factor in the long-term sustainability of successful and responsible companies when making their investment choices. The purpose of this paper is to investigate whether or not the sustainability performance of a company affects the informativeness of its earnings by exploring the mediating effect of sustainability performance on the association between stock returns and earnings changes.Design/methodology/approachUsing a sample of firms for the period 2009–2016 with available sustainability data from TruValue Labs' database, the authors investigate how the sustainability performance of a firm mediates the relationship between stock returns and earnings (changes). The authors use ordinary least squares (OLS) regressions to test their hypotheses.FindingsConsistent with the voluntary disclosure and environmental, social and governance (ESG) performance literature, the authors find that higher sustainability performance improves the stock price informativeness of earnings. The authors find evidence in support of increased earnings response coefficient with increased sustainability performance.Research limitations/implicationsThis study adds to the literature supporting the notion of sustainability investing indicating that sustainability performance of a firm affects the stock price informativeness and predictability of earnings (changes) of the firm.Originality/valueThis study has value for, both, investors and managers regarding the importance of sustainability performance of the firm. Sustainability performance of the firm sends signals to market participants, increasing the informational content of the reported earnings as well as predictability of future earnings.
企业可持续发展绩效与盈余信息
随着人们对环境和气候意识的提高,可持续发展越来越受到投资者的关注。现在,许多投资者在做出投资选择时,会考虑成功和负责任的公司的长期可持续性。本文的目的是通过探索可持续性绩效对股票收益与盈余变化之间的关联的中介作用,来研究公司的可持续性绩效是否影响其盈余的信息性。设计/方法/方法使用TruValue Labs数据库中2009-2016年可持续性数据的公司样本,作者研究了公司的可持续性绩效如何中介股票收益与收益(变化)之间的关系。作者使用普通最小二乘(OLS)回归来检验他们的假设。研究结果与自愿披露和环境、社会和治理(ESG)绩效文献一致,作者发现,更高的可持续性绩效提高了股票价格的收益信息。作者发现证据支持增加盈余反应系数与增加的可持续发展绩效。本研究补充了支持可持续投资概念的文献,表明公司的可持续性绩效影响公司的股价信息性和收益(变化)的可预测性。原创性/价值本研究对投资者和管理者都有价值,关于公司可持续性绩效的重要性。企业的可持续性绩效向市场参与者发出信号,增加了报告盈余的信息含量以及对未来盈余的可预测性。
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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