Abstract/Details

A study of the market's reaction to superior sustainability reporting as demonstrated by the financial performance of publicly traded companies


2008 2008

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Abstract (summary)

Recent ethical lapses by business organizations and their management suggest that traditional governance requirements have had less than the desired effect. Legislated disclosure alone is insufficient as it provides reactionary guidance that fails to address performance issues since rules can be circumvented and financial data can be tweaked to reflect its most favorable presentation. The research evaluated sustainability reporting as an additional resource for reporting on ethical performance and addressed the question of whether companies that demonstrate ethical leadership through best in class sustainability reporting performed better than their peers in terms of value creation.

The study evaluated a group of top companies recognized in the SustainAbility Global Reporters Listing for 2006 against the market performance of securities traded on the S&P 500 Index during the period of January 1, 2002 to December 31, 2006. The selected datasets were compared relative to the dependent variables of risk and return to identify any potential differences in the datasets. The research does not imply causality, as sustainability reporting itself does not create value. This is also why the study did not conclude that companies that fail to report on sustainability issues were bad performers; rather organizations could potentially increase their value by doing more to communicate their performance. Strong financial performance may encourage enhanced disclosure; in that case sustainability reporting provides a manner by which organizations can demonstrate sound financial decision-making. Sustainability reporting may be viewed as a best in class business process that ethical and operationally efficient organizations use to communicate their activities.

Indexing (details)


Subject
Accounting;
Finance;
Sustainability reporting;
Business ethics;
Public companies;
Financial performance
Classification
0272: Accounting
0508: Finance
Identifier / keyword
Social sciences; Business ethics; Corporate communications; Corporate transparency; Financial performance; Publicly traded companies; Sustainability reporting; Value creation
Title
A study of the market's reaction to superior sustainability reporting as demonstrated by the financial performance of publicly traded companies
Author
D'Angela, Derek A.
Number of pages
144
Publication year
2008
Degree date
2008
School code
0332
Source
DAI-A 69/06, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
ISBN
9780549638483
Advisor
Castelli, Patricia A.
Committee member
Castronova, Frank C.; Hoffner, Vernon R.; Stavros, Jacqueline M.
University/institution
Lawrence Technological University
Department
Business Administration
University location
United States -- Michigan
Degree
D.B.A.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
3315101
ProQuest document ID
250796712
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/250796712
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