RT Article
T1 The Value Relevance of Reputation for Sustainability Leadership
JF Journal of business ethics
VO 119
IS 1
SP 17
OP 28
A1 Lourenço, Isabel Costa
A1 Callen, Jeffrey Lawrence
A1 Branco, Manuel Castelo
A1 Curto, José Dias
A2 Callen, Jeffrey Lawrence
A2 Branco, Manuel Castelo
A2 Curto, José Dias
LA English
YR 2014
UL https://ixtheo.de/Record/1785649817
AB This study investigates whether the market valuation of the two summary accounting measures, book value of equity and net income, is higher for firms with reputation for sustainability leadership, when compared to firms that do not enjoy such reputation. The results are interpreted through the lens of a framework combining signalling theory and resource-based theory, according to which firms signal their commitment to sustainability to influence the external perception of reputation. A firm’s reputation for being committed to sustainability is an intangible resource that can increase the value of a firm’s expected cash flows and/or reduce the variability of its cash flows. Our findings are according to expectations and show that the net income of firms with good sustainability reputation has a higher valuation by the market, when compared to their counterparts.
K1 Value relevance
K1 Reputation
K1 Corporate Sustainability
DO 10.1007/s10551-012-1617-7