The Impact of Best Practices of Sustainability on Quality of Management: An Investigation at Brazilian Capital Markets

16 Pages Posted: 23 Aug 2012

See all articles by Valdir Lameira

Valdir Lameira

INESC Coimbra

Osvaldo Quelhas

affiliation not provided to SSRN

Roberto Pereira

Fluminense Federal University

Jean E. Harris

Pennsylvania State University - School of Business Administration

Walter Leal Filho

Hamburg University of Applied Sciences (HAW)

Walter Ness

affiliation not provided to SSRN

Date Written: August 23, 2012

Abstract

The study of the relationship between best practices of sustainability and quality of management investigates one of the most relevant and topical issues involving researchers and professionals. For this investigation, a representative sample of 205 Brazilian companies was selected, covering the period from 2005 to 2009 to test for a possible relationship between participation in a sustainability index, an indicator of best practices of sustainability and indicators of the quality of management. After applying different econometric methods, it was possible to confirm the hypothesis that best practices of sustainability are associated with better performance, less risk and higher market value. Moreover, best practices of sustainability impact the value of companies directly and indirectly through the mediating variables of performance and risk. Finally, possible determinants of the quality of practices of sustainability are associated (1) with market values in a positive way and (2) with operating leverage, return on assets (ROA) and volatility in a negative way.

Keywords: Sustainability, performance, market risk, value, capital market, Brazil

JEL Classification: G30, M20

Suggested Citation

Lameira, Valdir and Quelhas, Osvaldo and Pereira, Roberto and Harris, Jean E. and Filho, Walter Leal and Ness, Walter, The Impact of Best Practices of Sustainability on Quality of Management: An Investigation at Brazilian Capital Markets (August 23, 2012). Available at SSRN: https://ssrn.com/abstract=2135129 or http://dx.doi.org/10.2139/ssrn.2135129

Valdir Lameira (Contact Author)

INESC Coimbra ( email )

Rua Antero de Quental, 199, Coimbra
Coimbra, Coimbra 3000-033
Portugal

Osvaldo Quelhas

affiliation not provided to SSRN ( email )

Roberto Pereira

Fluminense Federal University ( email )

Rua Miguel de Frias, 9
Icaraí
Niterói, 24220-900
Brazil

Jean E. Harris

Pennsylvania State University - School of Business Administration ( email )

777 West Harrisburg Pike
Middletown, PA 17057-4898
United States
717-948-6157 (Phone)
717-948-6456 (Fax)

Walter Leal Filho

Hamburg University of Applied Sciences (HAW) ( email )

Berliner Tor 5
Hamburg, 20099
Germany

Walter Ness

affiliation not provided to SSRN ( email )

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