The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects

By Marcus Wagner. 2010

373 citations recorded by the source corpus.

This paper analyses the link between sustainability management and economic performance. Its main research question concerns the association of social responsibility and environmental management with economic performance, determinants of the latter and possible moderation effects. Based on data collected from financial databases and Kinder Lydenberg Domini for the period 1992 to 2003, the paper analyses the link of corporate sustainability performance with economic performance using panel estimation techniques. The analysis shows that advertising intensity moderates the association of corporate sustainability performance and economic performance as measured by Tobin's q. For research and development efforts relative to firm size, no moderating role on the link between corporate sustainability and economic performance is identified. A sensitivity analysis using separate measures for social and environmental performance reveals that the latter only has a direct effect and the former only a fully moderated effect on economic performance. Policy and management implications of these findings are discussed.

Subfields: Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8a0e42bce6d287f01aff882538e03a3d0c7a861d

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Citations in the corpus

How Does the Market Value Corporate Sustainability Performance? (2011, neutral): “…is evidence both of a negative relation (López et al. 2007), no relation (Curran and Moran 2007; Garcia-Castro et al. 2010; Surroca et al. 2010), and a positive relation (Doh et al. 2010; Lo and Sheu 2007; Consolandi et al. 2009; Cheung 2011; Robinson et al. 2011; Wagner 2010) between the two.”
The Impact of Integrated Practices of Lean, Green, and Social Management Systems on Firm Sustainability Performance—Evidence from Chinese Fashion Auto-Parts Suppliers (2015, neutral): “[48], and Wagner [49].”
Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms (2019, background): “Environmental initiatives such as pollution reduction may lead to productivity gains and cost reductions through lowering the consumption of materials, energy and services [48,66].”
Unraveling the effects of environmental outcomes and processes on financial performance: A non-linear approach (2014, background): “…to offset environmental pollution are likely to pay off (e.g., Christmann, 2004; Hart and Ahuja, 1996; Konar and Cohen, 2001; Russo and Fouts, 1997; Wagner 2010), that environmental and financial performance are negatively associated (Blacconiere and Patten, 1994; Cordeiro and Sarkis, 1997; Walley…”
The Value Relevance of Reputation for Sustainability Leadership (2014, background): “Some previous literature provides evidence on a positive relation between reputation for good sustainability and financial performance (e.g. Cheung 2011; Consolandi et al. 2009; Lo and Sheu 2007; Robinson et al. 2011; Wagner 2010).”
Do corporate sustainability practices enhance organizational economic performance (2015, background): “Prior literature on corporate sustainability has long argued that organizations capable of pursuing sustainability obtain superior performance and enhance their long-term survival (Wagner, 2010; Figge, 2005).”