Corporate Sustainability: Do Executives and Investors Care? An Empirical Study

International Journal of Management and Marketing Research, v. 11 (1) p. 19-26, 2018

8 Pages Posted: 28 Feb 2019

See all articles by Sekhar Amba

Sekhar Amba

New York Institute of Technology

Date Written: 2018

Abstract

This research examines the association between corporate sustainability reporting ESG score and firm’s financial performance, Executive compensation. Empirical analysis is performed on firms listed on S&P 500 and S&P/TSX firms. Regression method is used to test the impact of ESG score of a year on next years’ ROE and Executive compensation. Empirical evidence suggests that ESG scores of an year has an impact on ROE of the following year during the period of investigation 2011 to 2015, whereas ESG scores showed similar impact on Executive compensation from the year 2013 onwards suggesting executive compensation is tied to corporate sustainability performance.

Keywords: Sustainability, ESG, ROE, Executive Compensation

JEL Classification: G3, M2

Suggested Citation

Amba, Sekhar, Corporate Sustainability: Do Executives and Investors Care? An Empirical Study (2018). International Journal of Management and Marketing Research, v. 11 (1) p. 19-26, 2018. Available at SSRN: https://ssrn.com/abstract=3241771

Sekhar Amba (Contact Author)

New York Institute of Technology ( email )

Kingdom of Bahrain
New York, NY 10023
United States

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