Sustainable Development and Corporate Financial Performance: A Study Based on the FTSE4Good IBEX Index

By M. Charlo, Ismael Moya, A. M. Muñoz. 2015

114 citations recorded by the source corpus.

type="main"> The social and environmental aspects of business investment and financing are becoming increasingly important. Most studies on corporate social responsibility (CSR) focus on analysing the relationship between company performance in the financial and social fields. However, the results obtained have not been conclusive, mainly due to the variables used to measure CSR. In order to simplify its measurement, in this work we used an empirical analytical method to determine possible differences between the financial variables of firms considered to be socially responsible and those not considered to be such. The results obtained show that socially responsible corporations obtain higher profits for the same level of systematic risk and show greater sensitivity to market changes, leverage levels and company size. This pioneering study is the first to make use of the first, and at the present time only, Spanish sustainability index, the FTSE4Good IBEX. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

Subfields: Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/e2103b6c730c1781803fcbbd5a16a77d91e85ed4

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Citations in the corpus

Can Sustainable Investment Yield Better Financial Returns: A Comparative Study of ESG Indices and MSCI Indices (2019, background): “For example, Charlo, Moya, and Munoz (2017, 2015); Fowler and Hope (2007); Lopez et al. (2007); Mensi et al. (2017); Santis et al. (2016); Schmid et al. (2017); de Souza Cunha and Samanez (2013); la Torre et al. (2016), and Tularam et al. (2010) study the sustainable indices in terms of their risks ”
Sustainability Matter and Financial Performance of Companies (2017, background): “It is clear that companies find it attractive to be part of a sustainability index that not only allows them to publicize their results but also be seen as a quality seal that enhances their reputation [6].”
The Value Relevance of Environmental, Social, and Governance Performance: The Brazilian Case (2018, background): “Among these advantages are the improvement in brand reputation [23], the improvement in employee productivity, the increase in operating efficiency, and the improvement in the relationship with the regulators, society, and other interested parties [24], access to better investment projects [25] and ”