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Does Ethics Reward on Public Markets: Empirical Evidences Ten Years After the Great Recession
- Publication Year :
- 2019
-
Abstract
- In the aftermath of the last Great Recession in 2007, firms’ commitment to social responsibility and sustainability started to be considered a corporate leverage to make extra-returns as well as to improve corporate reputation on institutional markets. This in turn has implied a lower uncertainty among investors and a higher trust from stakeholders’ categories, rising virtuous firms’ returns to over-perform their less responsible peers. Hence, this paper investigates the positive externalities of CSR on Italian stock exchange market, focusing on Blue Chips’ financial performance over the ten years post-crisis. In particular, we examined whether a listed company has been rewarded by its stakeholders over a high volatility periods, leveraging on CSR and Sustainability issues. Empirical findings highlight, ceteris paribus, two implications in regards to the impact of sustainability rating on corporate financial health. Indeed, the effect of CSR and corporate sustainability improves significantly companies’ earning performance (Return on Asset), although firms do not benefit from economic outperformances (Earning per Share) on stock exchange market.
- Subjects :
- Leverage (finance)
Return on assets
Earnings per share
Ceteris paribus
05 social sciences
06 humanities and the arts
Monetary economics
0603 philosophy, ethics and religion
Corporate sustainability
Stock exchange
0502 economics and business
Corporate social responsibility
060301 applied ethics
Business
Social responsibility
050203 business & management
Subjects
Details
- Database :
- OpenAIRE
- Accession number :
- edsair.doi.dedup.....a273b306039396d22281fddad7443352